How PPC Benefits you?

According to Internet research firm Jupiter Media Metrix search engines are faring well in the current soft online advertising market because they are among the few that have successfully aligned the needs of both consumers and marketers. Paid search placement models are succeeding because consumers are finding relevant listings much faster on paid search engines, while advertisers are only paying for qualified lead traffic on a per-click basis. This makes paid search engine listings a win-win situation.

Pay-per-click search engines are much like auctions - they allow you to bid for top-ranking positions under keywords of your choice. For each visitor who searches the keyword(s) you rank under and then clicks through to your website, you pay whatever you bid. Prices range from 5 cents to many dollars per click-through for popular keywords.

There are three key advantages to bidding on keywords in the pay-per-click search engines:

1. You only pay for advertising that works because you only pay when someone actually clicks through to your web site. This means that, managed well, pay-per-click search engines can be a cost effective way to draw targeted traffic to your web site.
2. Pay-per-click search engines will list your site almost immediately (times range from a few hours to a few days depending on the PPC engine). So rather than waiting weeks or months for your web site to be listed as with free inclusion search engines, you can start profiting from the increased traffic and sales almost immediately.
3. By outbidding other competing sites you'll rank Number 1 in most PPC search engines (Google Adwords Select have a relevancy factor built in that ensures the most relevant ads bidding appear highest). Typically click through rates on PPC listings are not as high as those for 'pure' search results (after all people know they are a paid listing). Despite this PPC is a great way to get high visibility quickly in key search engines and you only pay on click-throughs.

The thing to watch is that PPC requires active management or you can burn through a lot of money very quickly. In addition, Overture and Google have strict editorial and relevancy policies which must be conformed to. This can be both time consuming and complicated which is why it is generally outsourced. PPC is incredibly effective, reliable and cost-efficient compared to other advertising.

Many companies use PPC very successfully to acquire new customers for under $1 per customer acquisition. That's tremendous value, and that's why PPC is so worthwhile.

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