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What is Pay Per Click Internet Advertising?

Google Cost Per Click Web Sponsored Listings

Sep 7, 2009 James Clausen

Pay per click Internet advertising is important to get Internet traffic to a website. What is pay per click advertising, how does PPC work and how much does it cost?

When operating a website for profit, using pay per click advertising or PPC, is a must to get Internet traffic to the website. No traffic translates into no profits. Google PPC advertising is similar to other PPC advertising search engines like Yahoo and MSN, but Google is the giant. If a web master is going to use PPC advertising, Google has more programs than any other search engine to get Internet traffic to a website.

What is Pay Per Click Internet Advertising – Sponsored Listings?

PPC advertising are ads that are placed with a search engine company like Google. The website owner only pays for ads when they’re clicked by an Internet user. PPC ads are also known as sponsored ads. Once the Internet user clicks on a sponsored ad, the web owner is charged a click fee and the Internet users are linked and directed to the website or to a specific web page.

Pay per Click Ads – Sponsored Listings vs. Natural Listings

Natural searches are what the Internet search engine computers (a.k.a. spiders) pick up from websites and list for free. Sponsored searches are searches that are listed and the advertisers are charged a fee every time an Internet user clicks on the ad. The Internet search engine companies call them cost-per-click or CPC. The sponsored ads are generally listed on the top, on the side and on the bottom of the search page. They will also be listed with the words “sponsored links.”

Advantages of Sponsored Listings vs. Natural Listings

  • With a sponsored listing there’s much more control over page ranking.
  • With a sponsored listing there’s control over how the ads read, word for word. With a natural search it’s not known what words will be picked up by the spider and listed.
  • Sponsored listings allow the ads to be directed to any page of the website that the web master chooses.
  • Sponsored listings allow the web master to choose keywords of their choice and choose as many keywords as they desire.
  • With a sponsored listing the keywords don’t have to be in the listed ad.
  • Sponsored listings allows the web master to track lots of information that’s invaluable to the profitability of their business.

The biggest disadvantage, of course, is that sponsored listing costs money and in some cases can get expensive. The web master does however have complete control over how much they spend.

What’s the Cost for Pay Per Click Internet Advertising?

Since PPC advertising only charges when an Internet user clicks on the ad, the web master can choose how much they are willing to spend per click. The actual cost is based on the keywords used. As a general rule, the more popular the keyword phrase is to Internet searches, the more the cost per click (CPC). The web master bids against other web masters and the one with the higher bids gets better ad placement and page rankings.

The web masters can also set daily limits of how much they want to spend. Once the daily limit is reached, the ads stop running until the following day. If a CPC bid is placed on a keyword and the bid is too low for first page placement, Google will warn the web master that the bid is too low for first page placement. Google will also inform the web master what the minimum bid is for first page ad placement if the bid is too low.

Google has keyword search tools available that let the web master test keywords for average monthly searches, estimated CPC and the amount of competition. Testing keywords is an important step before starting an ad campaign for sponsored listings.

The copyright of the article What is Pay Per Click Internet Advertising? in E-Commerce is owned by James Clausen. Permission to republish What is Pay Per Click Internet Advertising? in print or online must be granted by the author in writing.
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