What Is Pay Per Click?

Pay Per Click is one type of Search Engine Marketing tactic. With PPC you pay for each click from your ad in the Search Engine Results Page (SERP). This is how Google makes most of it's money. They call their advertising program AdWords.

Organic Versus Paid Listingsorganic versus PPC listings

On Google's SERPs pages there are two types of ad listings. Organic listings appear based on Google's ranking of a site based on it's Search Engine Optimization and overall PageRank. These ads appear on the left side of the page.

AdWords listings (PPC) are shown based on how much an advertiser is willing to pay for that keyphrase. The more the bid price the higher the listing.

These listings appear at the very top and to right of the page. The very top listings appear partly because those advertisers have bid the highest click price. But there's other important factors too.

How AdWords Works

  1. You choose keywords that you want to bid on.
  2. You choose the bid price (click price) you want to pay for that keyword.
  3. Everytime someone clicks on your ad you pay Google that bid price.
  4. That click is then sent to whatever landing page you choose.

But AdWords Can Be Tricky

Because your ad spend is based on how many times someone clicks on your ad, it's easy for a campaign to run up costs very quickly. For some very competitive markets clicks cost as much as $20 to $50 apiece. Even less competitive keywords can cost $1 to $2 for each click.

And sometimes a click on a particular keyword does not convert to a sale very well. So weeding out these ineffective keywords is a critical part of managing your campaign. The goal is to find the "buying" keywords that lead directly to a sale.

The Quality Score

Actually a bid price is determined by something called your Quality Score. Your Quality Score is based on a combination of bid price, click through rate, and the quality of your landing page.

To be sure to pay the lowest price for your click you must understand...

Without proper skills and monitoring it's easy to spend hundreds of dollars per day on keywords that don't translate into sales. This is not something that the average small business owner has the skills or the time to do themselves unless they are willing to learn how it all works.

The Good News

This type of advertising may be the most trackable of any type of marketing. You will be able to know, down to the penny, whether your AdWords Campaign makes money or not. With proper tracking in place, you're able to identify exactly what keyword phrases are profitable and which ones are not. Once you get the "ducks in a row" you can get new customers for your business in a very cost-effective way. There's no guessing whether the advertising tactic worked. You can see from the numbers very clearly.

This is far different than typical marketing strategies like newspaper ads, billboards, or direct mail, where you can't really pinpoint an ads effectiveness or how much you actually paid for a new customer. Knowing your Customer Acquisition Cost is the key to making your marketing dollars effective. With Pay Per Click you can know exactly what works. Now isn't that a breath of fresh air.

» Watch Some Google Videos About AdWords

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About MeRick Hart local online marketing advisor

Hi I'm Rick Hart. I'm a professional online marketer. I help people succeed online with website design, search engine optimization, and online promotion of their websites.

I've been in marketing for over 30 years. Most of that time I was a freelance graphic designer but since 2005 I've been specializing in online marketing.

My first job in online marketing was as an Affiliate Manager. If you don't know what that is don't worry. Basically I helped companies market their products online through an affiliate program. You can learn more at my affiliate marketing website if you like.

I continued to learn the details of online marketing and since 2008 I've been offering my services as an online marketing consultant to many individuals and companies who want to improve their online marketing.

There are a lot of ways to meet new customers online. It all starts with "meeting people where they are now" in the search engines or on social media sites. How you do that is where I come in. I can help you...

• Build a website

• Get that website on the first page of Google

• Do Pay Per Click (AdWords)

• Create Your Sales Funnel so you move people to choose you and give you a call

• Create a Social Media presence to drive new customers to your website

If you're new to Online Marketing and want to learn the basics, please visit my Online Marketing Primer. It will give you the 10,000 foot view of how it all works.

If you'd like to arrange a free 30-minute personal consultation contact me here.

I look forward to helping you take advantage of the "best form of marketing ever invented" and finding new customers online.

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