A Beginner’s Guide to Pay Per Click Marketing
A Beginner’s Guide to Pay Per Click Marketing
How do Pay Per Click Ads Work?
If you look at a search engine results page (SERP) carefully, you can generally distinguish between search results that are regular algorithmic or “organic” search listings and PPC search results which are actually paid advertisements. The latter are generally listed under the headings "sponsored results" or "featured listings" and consist of specially designed text, image or video ads that are triggered to display when your target keywords are used in a search query. The PPC ads generally appear on the right hand side and/or at the top of the search results pages.
To appear in the PPC results, advertisers sign up for the PPC program of their choice and create short text ads, image ads or videos describing the product or service available on their site in a way that will best entice searchers to visit it. During the program setup, an advertiser will decide which trigger keywords/phrases they wish to bid on and how much they are willing to pay when a visitor clicks on their ad. Generally, the higher the bid, the more likely their ad will show above their competitor’s.
The Origins of Pay Per Click Marketing
The PPC industry was pioneered by GoTo.com (later re-branded as Overture before it was purchased by Yahoo! in July 2003). Despite their enormous success, GoTo’s PPC model was met with a lot of skepticism in the industry following their IPO in 1999. Their eventual purchase by Yahoo put to rest any doubts that pay per click advertising was here to stay.
In October 2000, Google which was eventually to become the world’s most popular search engine, launched their own keywords advertising model (Google AdWords), blending algorithmic search results with pay per impression ads.
In 2002, in an attempt to compete more successfully with Overture, Google expanded AdWords to include the pay per click pricing model we are familiar with today. This model provide both more popular and more successful and eventually replaced the pay-per-impression model as the default system.
By 2002, GoTo (by then rebranded as Overture), had distribution deals with an impressive range of search engines including Yahoo!, MSN, AltaVista, InfoSpace and a number of meta search engines including MetaCrawler and Ixquick. Overture’s powerful distribution network guaranteed advertisers placement of their ads in front of a LOT of eyeballs and it became clear that many were willing to pay big bucks for the privilege. Other major search engines also formed successful distribution partnerships with PPC providers during this time, noticeably AOL, AskJeeves and MSN with Google AdWords. The pay per click industry had officially arrived.
Scores of PPC search engines began to spring up following Overture’s lead, however the PPC industry continued to be dominated by the two big PPC players, Overture and Google AdWords, while Yahoo!, MSN, AOL and Google fought it out for dominance in the general search market.
In July 2003, in a move that shocked the industry, Yahoo! purchased Overture to enable them to better compete with market leader Google. In April 2005 they rebranded the PPC engine as Yahoo! Search Marketing and in 2006 they launched a revamped version of the service, code-named Panama.
Meanwhile, in October 2005, Microsoft quietly launched their own PPC service called MSN adCenter. An official launch in the US, together with a name change to Microsoft AdCenter occurred in May 2006. In May 2007, Microsoft revamped AdCenter with new features and rolled it out to advertisers worldwide.
Currently, Yahoo and Google continue to dominate the PPC landscape, although Microsoft AdCenter is beginning to make an impact. Second tier PPC engines such as MIVA (formerly Espotting and FindWhat) and Kanoodle are fast catching up to the majors.
There are now hundreds of PPC search engines worldwide, servicing global, regional and niche markets, but only a few that have achieved a significant market share of advertising revenue. A summary of the majors are listed below.
Yahoo! Sponsored Search
Yahoo! Sponsored Search is the current name for what was originally called Overture Precision Match. Yahoo! Sponsored Search prominently displays your site in search results on some of the top U.S. search properties that Yahoo! partners with. With Sponsored Search, you set the price you're willing to pay for each customer who clicks on your listing.
Your ads appear at the top, bottom or right hand side of Yahoo search results pages under the heading “Sponsor Results”. Your ads are triggered on search result pages when searchers enter the keyword combinations that you’ve bid on. Your ads can be targeted by language and country.
If you create a keyword campaign and you use the ContentMatch option, your bid also buys you top listings on Yahoo's partner sites AltaVista, InfoSpace, eBay, CitySearch, AllTheWeb and a range of news and content portals, such as USAToday, National Geographic, iVillage and NBC.
Google AdWords
Google AdWords gives web site owners the ability to promote their site when particular keyword or phrase searches are conducted at Google and partner sites.
Your ads appear at the top or on the right side of search results pages in a “call out” box under the heading “Sponsored Links”. Your AdWords text, image or video ads appear on search result pages for the keywords you buy, and can be targeted by language and country.
With Google AdWords cost-per-click (CPC) pricing, you pay only when a customer clicks on your ad, regardless of how many times it's shown. Google adjusts your bids automatically to keep you ahead of your competition at the lowest possible price. Google AdWords results appear on Google search results pages, Google’s distribution partner sites, Google Gmail, and numerous content sites which are syndicated through the Google AdSense program.
Microsoft AdCenter
Microsoft adCenter is the newest kid on the Pay Per Click block. It includes the ability to target your ads to MSN Live Search users who match your target regional and demographic criteria. Microsoft adCenter allows you to submit base bids for keywords or phrases you associate with your ads. This base bid is the maximum amount you are willing to pay if any Live Search user searches for one of your keywords and clicks your ad. You can also increase your bid in order to reach specific audience targets, which help increase the chance your ad will appear for a user who fits your buyer profile.
Targeted bidding in the Campaigns tab allows you to add amounts to your base bid to increase the possibility that your ad will show to searchers who fit your optimum buyer profile. You can use your bid amounts to influence your ad’s position in the Live Search results. In general, the more you bid, the higher the position your ad will have.
You can use Microsoft’s Intelligent Targeting feature to adjust your ads to match these variables:
• Geographical location
• Age and gender
• Day of the week
• Time of day (morning, afternoon, or night)
Interestingly, Microsoft pitch the ability to “build brand awareness” with their PPC program, due to the continued exposure of your ad and brand to a large market, regardless of whether that ad attracts clicks. This is an important feature of all major PPC programs but one that is rarely promoted by Google or Yahoo!
Perhaps brand-building is adCenter’s Unique Selling Proposition (USP) because Microsoft claim to reach more potential eyeballs than their competitors: over 99 million people per month have access to their Live Search tool across MSN and Windows Live.
The Advantages of Pay Per Click Advertising
The growth of the search industry worldwide has created a huge market for paid search advertising and most search engines and directories now have some type of Pay For Performance or Pay Per Click (PPC) element to them.
Pay Per Click advertising:
Enables webmasters to target geographical and niche markets more precisely via specific search queries.
Enables webmasters to have their page URL displayed at the top of the search engine results pages without having to figure out complex search engine algorithms or pay an SEO expert to tweak their site for higher rankings.
Enables webmasters to receive new traffic instantly.
Enables a website or offline store to be found by search engine users even if no site exists or the site is not search engine compatible.
Enables small businesses to operate globally and compete on an equal footing with much larger competitors.
Enables instant sales and more measurable ROI via conversion tracking.
Enables more precise visitor pathways to be plotted (e.g. by leading visitors to specific landing pages).
Enables campaigns to be switched on and off on-demand to meet specific needs, search trends or specific events (e.g. Christmas sale).
A Beginners Guide to Pay Per Click Marketing - To learn more about this author, visit Kalena Jordan's Website.
Like this article? Share it with your friends
Pay Per Click (PPC) search engine marketing refers to a specific type of advertising where you pay a search engine every time a potential customer clicks on your ad. These ads appear on search engine results pages and sometimes on sites within a search engine’s network of partners.
How do Pay Per Click Ads Work?
If you look at a search engine results page (SERP) carefully, you can generally distinguish between search results that are regular algorithmic or “organic” search listings and PPC search results which are actually paid advertisements. The latter are generally listed under the headings "sponsored results" or "featured listings" and consist of specially designed text, image or video ads that are triggered to display when your target keywords are used in a search query. The PPC ads generally appear on the right hand side and/or at the top of the search results pages.
To appear in the PPC results, advertisers sign up for the PPC program of their choice and create short text ads, image ads or videos describing the product or service available on their site in a way that will best entice searchers to visit it. During the program setup, an advertiser will decide which trigger keywords/phrases they wish to bid on and how much they are willing to pay when a visitor clicks on their ad. Generally, the higher the bid, the more likely their ad will show above their competitor’s.
The Origins of Pay Per Click Marketing
The PPC industry was pioneered by GoTo.com (later re-branded as Overture before it was purchased by Yahoo! in July 2003). Despite their enormous success, GoTo’s PPC model was met with a lot of skepticism in the industry following their IPO in 1999. Their eventual purchase by Yahoo put to rest any doubts that pay per click advertising was here to stay.
In October 2000, Google which was eventually to become the world’s most popular search engine, launched their own keywords advertising model (Google AdWords), blending algorithmic search results with pay per impression ads.
In 2002, in an attempt to compete more successfully with Overture, Google expanded AdWords to include the pay per click pricing model we are familiar with today. This model provide both more popular and more successful and eventually replaced the pay-per-impression model as the default system.
By 2002, GoTo (by then rebranded as Overture), had distribution deals with an impressive range of search engines including Yahoo!, MSN, AltaVista, InfoSpace and a number of meta search engines including MetaCrawler and Ixquick. Overture’s powerful distribution network guaranteed advertisers placement of their ads in front of a LOT of eyeballs and it became clear that many were willing to pay big bucks for the privilege. Other major search engines also formed successful distribution partnerships with PPC providers during this time, noticeably AOL, AskJeeves and MSN with Google AdWords. The pay per click industry had officially arrived.
Scores of PPC search engines began to spring up following Overture’s lead, however the PPC industry continued to be dominated by the two big PPC players, Overture and Google AdWords, while Yahoo!, MSN, AOL and Google fought it out for dominance in the general search market.
In July 2003, in a move that shocked the industry, Yahoo! purchased Overture to enable them to better compete with market leader Google. In April 2005 they rebranded the PPC engine as Yahoo! Search Marketing and in 2006 they launched a revamped version of the service, code-named Panama.
Meanwhile, in October 2005, Microsoft quietly launched their own PPC service called MSN adCenter. An official launch in the US, together with a name change to Microsoft AdCenter occurred in May 2006. In May 2007, Microsoft revamped AdCenter with new features and rolled it out to advertisers worldwide.
Currently, Yahoo and Google continue to dominate the PPC landscape, although Microsoft AdCenter is beginning to make an impact. Second tier PPC engines such as MIVA (formerly Espotting and FindWhat) and Kanoodle are fast catching up to the majors.
There are now hundreds of PPC search engines worldwide, servicing global, regional and niche markets, but only a few that have achieved a significant market share of advertising revenue. A summary of the majors are listed below.
Yahoo! Sponsored Search
Yahoo! Sponsored Search is the current name for what was originally called Overture Precision Match. Yahoo! Sponsored Search prominently displays your site in search results on some of the top U.S. search properties that Yahoo! partners with. With Sponsored Search, you set the price you're willing to pay for each customer who clicks on your listing.
Your ads appear at the top, bottom or right hand side of Yahoo search results pages under the heading “Sponsor Results”. Your ads are triggered on search result pages when searchers enter the keyword combinations that you’ve bid on. Your ads can be targeted by language and country.
If you create a keyword campaign and you use the ContentMatch option, your bid also buys you top listings on Yahoo's partner sites AltaVista, InfoSpace, eBay, CitySearch, AllTheWeb and a range of news and content portals, such as USAToday, National Geographic, iVillage and NBC.
Google AdWords
Google AdWords gives web site owners the ability to promote their site when particular keyword or phrase searches are conducted at Google and partner sites.
Your ads appear at the top or on the right side of search results pages in a “call out” box under the heading “Sponsored Links”. Your AdWords text, image or video ads appear on search result pages for the keywords you buy, and can be targeted by language and country.
With Google AdWords cost-per-click (CPC) pricing, you pay only when a customer clicks on your ad, regardless of how many times it's shown. Google adjusts your bids automatically to keep you ahead of your competition at the lowest possible price. Google AdWords results appear on Google search results pages, Google’s distribution partner sites, Google Gmail, and numerous content sites which are syndicated through the Google AdSense program.
Microsoft AdCenter
Microsoft adCenter is the newest kid on the Pay Per Click block. It includes the ability to target your ads to MSN Live Search users who match your target regional and demographic criteria. Microsoft adCenter allows you to submit base bids for keywords or phrases you associate with your ads. This base bid is the maximum amount you are willing to pay if any Live Search user searches for one of your keywords and clicks your ad. You can also increase your bid in order to reach specific audience targets, which help increase the chance your ad will appear for a user who fits your buyer profile.
Targeted bidding in the Campaigns tab allows you to add amounts to your base bid to increase the possibility that your ad will show to searchers who fit your optimum buyer profile. You can use your bid amounts to influence your ad’s position in the Live Search results. In general, the more you bid, the higher the position your ad will have.
You can use Microsoft’s Intelligent Targeting feature to adjust your ads to match these variables:
• Geographical location
• Age and gender
• Day of the week
• Time of day (morning, afternoon, or night)
Interestingly, Microsoft pitch the ability to “build brand awareness” with their PPC program, due to the continued exposure of your ad and brand to a large market, regardless of whether that ad attracts clicks. This is an important feature of all major PPC programs but one that is rarely promoted by Google or Yahoo!
Perhaps brand-building is adCenter’s Unique Selling Proposition (USP) because Microsoft claim to reach more potential eyeballs than their competitors: over 99 million people per month have access to their Live Search tool across MSN and Windows Live.
The Advantages of Pay Per Click Advertising
The growth of the search industry worldwide has created a huge market for paid search advertising and most search engines and directories now have some type of Pay For Performance or Pay Per Click (PPC) element to them.
Pay Per Click advertising:
Enables webmasters to target geographical and niche markets more precisely via specific search queries.
Enables webmasters to have their page URL displayed at the top of the search engine results pages without having to figure out complex search engine algorithms or pay an SEO expert to tweak their site for higher rankings.
Enables webmasters to receive new traffic instantly.
Enables a website or offline store to be found by search engine users even if no site exists or the site is not search engine compatible.
Enables small businesses to operate globally and compete on an equal footing with much larger competitors.
Enables instant sales and more measurable ROI via conversion tracking.
Enables more precise visitor pathways to be plotted (e.g. by leading visitors to specific landing pages).
Enables campaigns to be switched on and off on-demand to meet specific needs, search trends or specific events (e.g. Christmas sale).
A Beginners Guide to Pay Per Click Marketing - To learn more about this author, visit Kalena Jordan's Website.
Like this article? Share it with your friends
 | |
 |
No article feedback found. |
| |
Leave Your Feedback |
 | |
| |||
Staging DivaDebra Gould, aka The Staging Diva®, is President of Six Elements Inc., an internationally recognized home staging company. Inspired by many requests from aspiring home stagers wanting to start similar businesses, Gould created the Staging Diva Home Staging Business Training Program. Gould has trained over 1000 Staging Diva Graduates worldwide to start staging businesses. Buying decorating and selling six of her own homes in four years lead to an interest in real estate staging which she turned into a career with the launch of sixelements.com in 2002. Since then she has staged hundreds of homes in addition to teaching home staging training. Gould is the author of several home staging resources including a series of popular ebooks made up of a Design Guide, Color Guide and Portfolio Guide. For more information about Debra Gould visit stagingdiva.com. - Visit Staging Diva's Website |
|||
Cheryl MatthynssensCheryl is a life skills coach, licensed Chemical Dependency Counselor and a 20 year entrepreneur. Cheryl's dedication to achieving a life of balance led to her expanding her teaching from the simple managing of life's daily challenges to adding financial well being as well. A direct marketer with DrinkACT, she is gaining ground in the online community with her concepts of making sure business owners, entreprenuers and employees have well rounded life styles. She opened up a small affiliate site - The Balance Guide- to help others find resources for mental and emotional well being. Visit Cheryl's blog to see more of the diversity beyond business she has began offering online at www.thebalanceguide.blogspot.com - Visit Cheryl Matthynssens's Website |
|||
John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
|||
Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
|||
Jeff FosterWebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas. We specialize in internet consulting & internet marketing. - Visit Jeff Foster's Website |
|||
Stephanie RobeyStephanie Robey is President and CoFounder of Pivot Positive, LLC - an Internet marketing business focused on helping people start work at home ventures. Previously, she was employed at The Search Agency with over 20 years experience in graphic design and 10 years experience in online marketing. She was responsible for launching the Conversion Path Optimization (CPO) unit where she and her team have conducted hundreds of optimization tests for online companies across multiple verticals. She is a successful entrepreneur having started and sold 2 companies and remains on the board of directors of the third, PhotoSpin.com Stephanie began her career in the direct marketing realm creating and producing direct mail for many of the major cable television companies and directly attributes her understanding of Internet marketing to those early offline experiences. Stephanie is a graduate of San Diego State University with a BFA in Graphic Arts and also holds an Executive MBA from the Graziadio School of Business and Management at Pepperdine University. Read Steph's Blog Meet Steph and Dave Sign up for our Free 7-Day BootCamp: Self Employed & Rich - Visit Stephanie Robey's Website |
|||
Joe DagerJoe Dager is President of Business901, a progressive coaching company providing no-nonsense direction in areas such as Lean Six Sigma Marketing and organized referral marketing. What others say: In the past 20 years, Joe and I have collaborated on many difficult issues. Joe’s ability to combine his expertise with “out of the box” thinking is unsurpassed. He has always delivered quickly, cost effectively and with ingenuity. A brilliant mind that is always a pleasure to work with.” - James R. If you want to learn more about Business901, start a conversation with us. We can be found @ Web/Blog: Business901.com Web/Blog: FundingYourNonprofit.com LinkedIn Profile Follow me on Twitter - Visit Joe Dager's Website |
|||
David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
|||
|
To learn more about the Evan Elite Author Program please contact us. | |||
 | |
|  |
Subscribe to Kalena's articles
 | |
|
|  |
 | |
|
| |
 | |||||||
|
 | ||
|
||
 |
||
 |
||
|
| ||
 |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
|
|
 |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
 |
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"
Click Here To Learn More |
|
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
|
|
 Networking Challenges Effective Art Of Networking Small Business Financing Winning Sales Letter Meditation Guide |
|
 | ||
 |
Top 50 Debt Blogs
Learn To Get Out Of Debt | |
 |
Top 50 SEO Posts - 2008
Top SEO Posts of the Year | |
| ||
 | ||||
| ||||
|
| ||||
| ||||
|
|
|
|
|
||||||||||||
|
Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
|
|
|
| ||||||||||||
| ||||||||||||
|
|
||||||||||||