Mandira Banerjea, Staff Writer, 09/06/2009
The power of Internet is manifested in a dynamic way by the cost effective pay per click on-line advertising. This strategic marketing approach helps the advertisers’ business to achieve better recognition by displaying their web site on the primary page of major search engines such as Google, Yahoo and others. A pay per click campaign attracts the attention of millions of web surfers at the very key juncture – when they are searching for information on search engines. The process of inviting traffic from search engines is generally termed “search engine marketing” whereas sponsored advertising on search engines is called a pay per click campaigns”. This marketing tactic increases sales as well as provides further leads by inviting queries from interested web surfers. Credit for conceptualizing and implementing the pay per click advertisement model is given to Idea Lab, Bill Gross.
Nowadays clients have realized the true potential of paid search marketing as such activities have enabled them to increase the revenue from on-line marketing efforts. The success of a pay per click campaign clearly paves the way by offering direction to the organization as with increased traffic sales are automatically boosted. The most popular pay per click search engines are Google, AdWords, Yahoo, Search Marketing, Microsoft Ad Center, MIVA and others. However, the costing of paid advertising on the Internet varies based on search engine level of competition from a particular keyword.
Pay per click is an innovative marketing solution used on web sites in which the advertisers pay their host search engines only when their ad is clicked. It allows more exposure while one can control the amount one wants to spend at the same time it effectively tracks their ad campaigns. Through search engines, the paid search marketing advertisers normally focus on keyword phrases which are relevant to their target audience. The web site usually offers a flat rate per click or a bidding proposition. But this Internet advertising model might be misused. To prevent such occurrences majority of the leading search engines have implemented technological systems to safeguard against fraudulent clicking by unethical web developers.
The cost structure of a paid per click campaigns are categorized under two segments, either flat rate or bid based. In either type, the organization advertising assesses the value of per click based on the target audience which the advertiser expects to receive on its web page along with the anticipated optimum benefit this advertisement would gain in terms of monetary remuneration from such traffic. Factors governing a pay per click campaigns include the keyword or phrase entered into the search engine, page content the targeted audience would browse, intention of the web visitor, location of the targeted audience as well as the time and day when web visitors are browsing the on-line site.
In case of flat rated pay per click campaigns, the advertiser and the search engine decide on a fixed amount that would be paid for each click. Cost per click is normally based on the rate the advertiser disburses to search engines and other Internet marketing publishers for a single click on its advertisement by web visitors. This system also reveals the number of visitors that are attracted to the web site. On-line web sites utilizing paid search marketing campaigns display their ad when the keyword query matches the advertiser’s keyword list or when the content site displays relevant content. Such types of web link are termed as “sponsored ad” or “sponsored links” which always appears adjacent or above on the search engine results page or may appear anywhere in the content site that has been prefixed by the web developer. In most cases the search engines have listed the cost per click rates within the various geographical regions of their network.
The different tariff rates are based on web contents. Where the content information is attractive to affluent clientele, they are charged an enhanced rate per click, while those contents which are of less interest and do not lure their valued customers are levied lesser tariff. But in most cases, the advertisers are allowed to negotiate and lower their rates when catering to high value contracts with long term potentials. The flat rate model in a pay per click campaign is usually a normal procedure of any shopping web site where the entire core content is generally paid ads.
In a pay per click campaign, which is based on bidding, the advertiser is required to sign a contract that permits competition against other advertisers selling similar products or services in a private auction hosted by the search engine or advertising web site. In such cases, the advertiser informs the search engine (host) of the maximum amount the organization is capable of paying for an ad spot (normally based on keyword / phrase). Whenever a web visitor visits the spot, the automated system pays out to the auction. If the ad spot becomes a part of the search engine result page, the automated auction immediately takes over the search for the keyword that is being bid upon. At such times, all bidding for the keyword focuses on the searcher’s geo-location, day and time of search and other related factors which are compared among other competitors for determining the winning bidder. The ad receiving the maximum targeted audience is displayed first but factors like ad quality and relevance to target audience also plays a prominent role.
The effectiveness of a paid per click campaigns is strictly related to the quality and quantity of data. The major search engines advise advertisers who are interested in adopting such models to research well in advance so as to ensure maximum viewership from targeted audience. With Internet marketing solution models becoming tougher with passing years, ordinary keyword research does not guarantee a competitive pay per click campaign. The world of paid advertising methodology has transformed business and has grown into a multibillion industry. It has become more sophisticated with enhanced features attracting a wider range of clientele leading to an expansion of business prospects.