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Pay Per Click Advertising

The most important aspect of advertising remains the ability of a company to get their name out there. Whether its in the form of print or online media, a company must research the most practical and efficient methods that will reach the appropriate target through the most utilized means. Search engines, such as Google and Yahoo!, are extremely important and highly used pathways to learn more and find information about companies. Smart advertising consists of pay per click options on said search engines.

Pay per click (PPC) advertising is a method used by companies to direct traffic to websites, generally seen on search engine websites. Keywords are bid on by companies so that their website and information pops up when a particular phrase or keyword is searched for on the search engine. Advertisers pay the publishers (advertising platform) when their particular ad is clicked, which are generally fixed rates. Ads appear on pages or searches with relevant or related content, so as to reach an interested audience. Often, these ads are referred to as sponsored links or sponsored ads.

Pay per click rates can be determined in two different ways: flat-rate and bid-based. Flat-rate PPC consists of a fixed amount that the advertiser and publisher agree on that will be paid each time the ad is clicked. The varying amounts paid here are determined by the content present on the page and the amount of time that the ad will be present on the website or search engine page.

In bid-based PPC, the position and amount of times an ad pops up on a search engine results page (SERP) is determined by the highest bid amount between competitors. On SERPs, the top and earliest search results are the most frequented, so the ad with the closest proximity to the top of the SERP is going to be the most successful. Private bid sessions are held between the publisher and potential advertisers. Particular keywords are bid on and based on geographic location and statistics surrounding the search, a bidding winner is selected via an automated process.

Many agreements occur between publishers and advertisers, including deals between third-parties with whom the publisher partners. The third-party groups offer to support an ad in exchange for a particular percentage of revenue directed back to them. These ads are often times referred to as content network ads or contextual ads.

Currently, the most popular PPC search engine is Google, which is also the most popular search engine used presently. Google utilizes a program called Google AdWords. Through this service, Google offers PPC advertising, cost-per-thousand advertising, and site-targeted advertising for ads.

Popular keywords change frequently, with current events and famous celebrities comprising a majority of the most frequently searched keywords.

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