Mandira Banerjea, Staff Writer, 09/06/2009
Pay per click ads are displayed on web sites when any key word / key word phrase query of a web browser matches an advertiser’s key word list. Often such ads pop out when the content information in the site appear relevant to the browser and answers their queries. This type of advertisement campaign, where the advertisers pay their hosts only when the ad is clicked, is known as “sponsored ads” or “sponsored links”. They generally appear in the search engine result page or at any particular corner of the content site that has been decided upon by the web developer. Search engine advertising was initiated by Google in December-1999 but it was only in the year 2002 that pay per click advertising was introduced on Google search engine. However, Yahoo advertisement continued to be based on the medium pay per click since their inception in 1998.
Effective pay per click advertising is result oriented advertisements where the advertiser disburses funds only after obtaining successful results. This procedure is unlike other forms of advertising that pay irrespective of the outcome. With the wide spread expansion of the electronic media, especially the Internet, performance based advertising is generating more interest. Normally in such a medium, it is possible to measure the optimum outcome from the advertisement. Nowadays, the majority of all web advertising is based on performance. On-line marketing module based on effective pay per click advertising is categorized under four common pricing models. They are “cost per thousand” pricing which charge advertisers on the basis of the number of times web visitors view their ads. Secondly, display advertising is generally sold at “cost per lead” pricing. In this model, advertisers pay only for the leads obtained irrespective of the number of clicks or impressions which resulted in the lead. This module is also known as “on-line lead generation”.
Free pay per click marketing strategy is more advertiser friendly as it is believed by senior management professionals that ad revenue generated would now be more by such action based advertising models than impression based sales. In such cases the advertiser controls the brand image where they can select trusted and relevant publishers unlike the affiliate marketing campaigns which are governed by publishers. In this scenario, advertisers are not in the knowhow of where the brand advertisement would occur as publishers are in sole control and they select the sites as well as the places of display. But it has been noticed that free paid per click advertising overcomes this problem as advertisers are charged only when the web browser clicks on the ads. Increased competition, however, has resulted in keyword search becoming more expensive. Research has revealed that cost per click is steadily increasing and it is believed that it rose by roughly 55% while cost per keyword has surged by 33%.
Since advertisers using pay per click ads have limited budget, they realize the importance of cost effective pay per click advertising. This is one of the most trusted methods of advertising as using this performance based advertising strategy the clients avoid the risk of paying large amounts for ineffective advertisements. The advertising agencies are motivated and guarantee that the free pay per click ads are well targeted and make the optimum use of available inventory of advertising space. Usually such ads are based on location, time, weekdays or weekends, demography and performance history. These indices ensure that pay per click ads maximize revenue earned from individual advertising slot. Google Adwords, Yahoo, Microsoft and others support such pay per click advertising plan.
Though Internet has propounded the idea of effective pay per click advertising, nowadays mobile telephone is increasingly being used as a web browsing device and supports free paid per click advertising plan.With consumers using mobile handset as an electronic payment device, it becomes practical to establish direct linkage between advertising and purchases. In recent times, IPTV is eventually combining features of cable TV and the Internet. Receivers can view advertisements in the side bar which relates to the show that is being watched by the viewers. For details, they may click on an advertisement and this action could be measured and used for charging the advertisers. But mobile telephone advertising is still in the nascent stage whereas Internet marketing and advertising has grown by leaps and bounds. This medium has the added advantage of placing one’s own created text ads on hundreds of web sites which are of relevance to the web browser.
Anyone who is interested in advertising their products on the web can run the pay per click ads on the advertising network and start obtaining positive response from the newly targeted audience. This is a speedy and simple method of conversion. All one is required to do is to browse the directory which has different categories. The advertiser should select the ones which are relevant for their business expansion. This is followed by setting the desired geographic targeting and creating an illustrative text ad. Once the budget is fixed the ads start running on the Internet. By selecting the pay per click advertising model, clients pay on the basis of the number of clicks received. They have just to decide the amount they are willing to disburse for each link where the clients wish to display their ads. Creating the ads and targeting the audience greatly depends on the contents and attractiveness of the web sites. The geographic range where the ad would appear also needs to be determined for optimum results.
Geographic targeting ensures that the ads would only appear in countries selected by the clients. The performance of these ads can be monitored and customized according the feedback obtained from web page impressions, clicks and total amount disbursed by the clients. Displaying the advertisements in the categorized directory depends on the clients as they select the display sites which they feel are appropriate for their business. The web visitors, while watching the ad, would know exactly what the client is offering and, if they find it appealing, would willingly click on the site. Thus creative pay per click ads is sure to entice the targeted audience within the determined geographic range.