Pay per click (PPC) is an advertising used on websites, advertising
networks, and search engines where advertisers only pay when
a user actually clicks on an ad to visit the advertiser's website.
Advertisers bid on keywords they believe their target market
would type in the search bar when they are looking for a product
or service. When a user types a keyword query matching the advertiser's
keyword list, the advertiser's ad may appear on the search results
page. These ads are called "sponsored links" or "sponsored
ads" and appear next to, and sometimes, above the natural
or organic results on the page. The advertiser pays only when
the user clicks on the ad. Pay per click advertising is a search
engine marketing technique.
Pay per click ads may also appear on content network websites.
In this case, ad networks such as Google Adsense and Yahoo! Publisher
Network attempt to provide ads that are relevant to the content
of the page where they appear, and no search function is involved.
While many companies exist in this space, Google AdWords, Yahoo!
Search Marketing, and MSN adCenter are the largest network operators
as of 2007. Depending on the search engine, minimum prices per
click start at about GB£0.10. Very popular
search terms can cost much more on popular engines. Arguably
this advertising model may be open to abuse through click fraud,
although Google and other search engines have implemented automated
systems to guard against this.
When
a user searches for a particular word or phrase, the list of
advertiser links appears in order of the amount bid. Keywords,
also referred to as search terms, are the very heart of pay per
click advertising. The terms are guarded as highly valued trade
secrets by the advertisers, and many firms offer software or
services to help advertisers develop keyword strategies. Content
Match, will distribute the keyword ad to the search engine's
partner sites and/or publishers that have distribution agreements
with the search engine company.
As of 2007, notable PPC Keyword search engines include: Google
AdWords, Yahoo! Search Marketing, Microsoft adCenter, Ask, LookSmart,
Miva, Kanoodle, Yandex and Baidu.
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