September 14, 2008 by Admin
Pay per Click is an interesting internet advertising model which is used in websites, blogs, search engines etc. The beauty of this model is that no huge investment is required for promotion. In such model advertisers only pay when surfers or users click on the keywords. When users attempt searches with the keywords they are taken to search results based on advertisers keyword list, content. These search results features advertisements which are relevant to the content of the blog or the website. Popular Pay per Click providers which exist today are Google Ad Words, Yahoo Search and Microsoft AdCenter.
The costs per click depend upon the competition which is prevailing for that particular keyword. Two basic categories exist in Pay per Click model, first on is sponsored match which simply typifies display of ads on search pages the other one is content match which displays the advertisements related to the content of website, email or blog. The business logic behind both these models has been perfected over the years and with most of the Pay per Click providers normally no goof up takes place. However since the model is database driven based on logics it is very difficult to fathom the complexity of such a system. For a normal user, the displayed search results have no meaning other than displayed search results. But the important factors are the number of years which have been put in by researchers in perfecting these logics.
Credit for development and conceptualization of Pay per Click goes to Mr Jeffrey Brewer, an owner of start up company. He presented the concepts in a California conference in 1998. Google stared using this model in 1999 when they used cost per thousand impressions model. Yahoo however has been using the same PPC model since 1998. The credit for conceptualization of this model goes to Idea lab and GoTo.com. PPC model operates upon words or phrases entered in to the search boxes. The result page displays the advertisement in the order they have been bid for. Keywords are the main nerve centres of PPC advertising, many search engine based advertising organization keep the repositories of keywords as closely guarded secret. There are even software and application existing which can help these organizations develop optimized revenue model for PPC marketing.
Important strategy in going with any of the Pay per Click model is to understand the mechanism. The highest bidder for key phrase will always have their advertisement displayed at the top of the list. Keywords are essential and should be chosen correctly. Choosing ineffective keywords like water, table etc may not help as it will be difficult to achieve the desired results. Most important factor to understand that pay per click model does not generate any revenues based on web traffic but the revenues is generated based on number of clicks. Since the PPC models appears to be so simple that many organized groups may try to encash this revenue model by deliberate self clicking of search results. Google and all other Pay per Click providers have put in place intelligent systems which can detect such behaviours and take action against the offending user/advertiser.
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