An Overview Of Pay Per Click Search Engine Fundamentals

Forbes magazine has reported that pay per click ad sales are expected to increase to at least $8 billionby 2008.

The three fundamental core elements that form the basis of a successful pay per click advertising programare constant monitoring, analysis, and refinement.

Pay per click search engines offer a way to buy your way to the top of search results for any term youwish. With proper management, and a clear focus, pay per click search engines can offer some of the mostwell targeted and economical advertising on the Internet.

Pay per click advertising works through a bidding process, and the ads appear prominently on the resultspages of search engines such as Google and Yahoo. The highest bidder for a particular word or phrasereceives top placement, and depending on the engine, the top three to five bidders also generally alsoreceive placement on the first page of unpaid search results.

Fundamental questions to be addressed when formulating a pay per click search engine strategy shouldinclude the following:

When is the top pay per click bid necessary for highest conversion, and when will bidding for a secondor third place position create a more attractive return on investment (ROI)?

How can you keep your PPC bids from cannibalizing your search efforts on other (non pay per click) searchengines?

What percentage of your pay per click budget should go to each search engine?

Does either Google Adwords or Overture work better for your particular product or service? Or, perhapsneither one is appropriate from a return on investment (ROI) perspective.

It is of critical importance to focus sharply on identifying the search terms that convert most frequentlyfor your particular site, eliminating those that don't perform, and most importantly, calculating andmaximizing your return on investment.

The cost structure of pay per click is action-driven and each time a user clicks your ad, the pay perclick engine deducts the amount of your current bid from your account. Pay per click offers a high levelof assurance that your ad is reaching the proper target.

Pay per click campaigns, however, are not perfect. Without CONSTANT monitoring, you sometimes risk incurringadvertising costs that can spiral out of control, focusing on terms that don't convert well for yourproduct or services, or falling way down in position during a bidding war.

PPC advertising can be a great help to a site's success, but only with very close supervision and a thoroughknowledge of the unique characteristics of each PPC search engine.

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