Understanding the Pay Per Click - By: Ann Liu

You may or may not familiar with pay per click, what pay per click (PPC) actually mean? How does it work? How can you maximize your earnings from this type of advertising?

PPC stands for Pay Per Click. It is a method of paying for advertising on the Internet search engines; many people know it as an Adwords or Paid Advertising.

Internet users who are searching for the products or services you are selling are in a receptive mode, if your offers are the things they are looking for, and then most likely they will convert to paying customers.

How does Pay Per Click (PPC) work?

Taking Google search engine as an example, when a user is searching for "ppc advertising", your PPC ads will be displayed either on the top or on the right hand side of the search engine results page, whether a searcher will click on your ads for further information inquire or not will depends on how compelling your ad copy is.

Upon clicking on your ad, the user will be redirected to your website, at the same time; your PPC account is charged a fee per the click on the ad, and how much you have to pay to Google is depend on the amount you bid per click. The most compelling aspect of PPC advertising is - you pay only when user who clicks on your ad. Or in other words, you only pay for qualified traffic that delivered to your website.

How Google decides the position of your Adwords?

The position of your Google Adwords for a particular keyword is depend on your campaign budget and click through rate (CTR) of that keyword. The key factor to rank your key phrases or keywords in Google Adwords is to get maximum CTR for your targeted keywords.

How do you maximize your earnings from Pay Per Click (PPC)?

Key 1: Relevance

The more time you spend on researching and selecting your keywords to be as relevant to your web site or your landing page, the higher the conversion rate you will get. However, if you attempt to use a lot of broad match keywords instead of combine the exact, phase and negative match keywords together, you're probably going to be disappointed with the performance of your campaign.

As a publisher, if the keywords that you bid are highly relevant to your website, the cost per click (CPC) will decrease, and you will gain a high click through rate (CTR). Google rewards advertisers who have high CTR.

Key 2: Write Strong Ads

Each one of your ads should have strong copy. You should write in manner that gives users a call to action. The quality of your ads copy can make or break a campaign.

After the selection of keywords, writing strong ads copy is the most important skill you need to master it, you may need to spend a few hours for the creation of a single ad (headline and two lines of text) and you also need to have some copywriting skills.

Google helps by automatically serving the ad creative with the highest CTR (click through ratio), however, as is the case with all other advertising channels - it is important to test, test and retest your ads.

Key 3: Opt for Search Engine Results Only

If the PPC engine you are using has a content network, turn it off first especially if you are new to the PPC. Google allows it and Yahoo allows it as well.

For the most industries, the content network delivers lower conversion rates compared to the search network. Example, Google content network allows you to show your ads on relevant sites on their content network, which are the sites that are running Adsense ads.

The best way to ensure that you get the most targeted traffic for your investment is by displaying your ads on search engine result pages.

If you are doing everything right, having a Pay Per Click (PPC) campaign set up can really help your business gain significant competitive advantage and good return on investment (ROI).

About the Author

Ann Liu, a certified professional Internet marketer and author of Online Profiting. To learn how YOU too can succeed in Internet and affiliate marketing, please visit http://www.marketingbyann.com

Article Directory Source: http://www.articlerich.com/profile/Ann-Liu/10675

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