Pay per click advertising
From Wikipedia, the free encyclopedia
• Have questions? Find out how to ask questions and get answers. •Jump to: navigation, search
A Google promotional graphic, highlighting AdWords, the largest PPC advertising programInternet Marketing
Display advertising
Interactive advertising
Email marketing
Web analytics
Affiliate marketing
Cost Per Action
Revenue sharing
Contextual advertising
Search engine marketing
Search engine optimization
Pay per click advertising marketing
Paid inclusion
Pay per click advertising (PPC advertising) is an advertising model used on search engines, advertising networks, and content websites, where advertisers only pay when a user actually clicks on an ad to visit the advertiser's website. Advertisers bid on keywords they believe their target market would type in the search bar when they are looking for a product or service. When a user types a keyword query matching the advertiser's keyword list, or views a page with relevant content, the advertiser's ad may be shown. These ads are called a "Sponsored link" and appear next to and above the natural or organic results on search engine results pages, or anywhere a webmaster chooses on a content page. Pay per click advertising is a search engine marketing technique. You only pay when your advert is clicked on so a very targeted form of internet advertising.
Pay per click advertising ads may also appear on content network websites. In this case, ad networks such as Google Adsense and Yahoo! Publisher Network attempt to provide ads that are relevant to the content of the page where they appear, and no search function is involved.
While many companies exist in this space, Google AdWords, Yahoo! Search Marketing, and MSN adCenter are the largest network operators as of 2007. Depending on the search engine, minimum prices per click start at US$0.01 (up to US$0.50). Very popular search terms can cost much more on popular engines. Arguably this advertising model may be open to abuse through click fraud, although Google and other search engines have implemented automated systems to guard against this.
Categories
PPC advertising engines can be categorized into two major categories "Keyword" or sponsored match and "Content Match". Sponsored match display your listing on the search engine itself whereas content match features ads on publisher sites and in newsletters and emails. [1]
There are other types of PPC advertising engines that deal with Products and/or services. Search engine companies may fall into more than one category. More models are continually evolving. Pay per click advertising programs do not generate any revenue solely from traffic for sites that display the ads. Revenue is generated only when a user clicks on the ad itself.
Keyword PPC advertisings
Advertisers using these bid on "keywords", which can be words or phrases, and can include product model numbers. When a user searches for a particular word or phrase, the list of advertiser links appears in order of the amount bid. Keywords, also referred to as search terms, are the very heart of Pay per click advertising advertising. The terms are guarded as highly valued trade secrets by the advertisers, and many firms offer software or services to help advertisers develop keyword strategies. Content Match, will distribute the keyword ad to the search engine's partner sites and/or publishers that have distribution agreements with the search engine company.
As of 2007, notable PPC advertising Keyword search engines include: Google AdWords, Yahoo! Search Marketing, Microsoft adCenter, Ask, LookSmart, Miva, Kanoodle, Yandex and Baidu.
Online Comparison Shopping Engines
"Product" engines let advertisers provide "feeds" of their product databases and when users search for a product, the links to the different advertisers for that particular product appear, giving more prominence to advertisers who pay more, but letting the user sort by price to see the lowest priced product and then click on it to buy. These engines are also called Product comparison engines or Price comparison engines.
Some Online Comparison Shopping engines such as Shopping.com use a PPC advertising model and have a defined rate card. [2] whereas others such as Google Product Seach, part of Google Base (previously known as Froogle) do not charge any type of fee for the listing but still require an active product feed to function.[3]
Noteworthy PPC advertising Product search engines include: Shopzilla, NexTag, and Shopping.com.
Service PPC advertisings
"Service" engines let advertisers provide feeds of their service databases and when users search for a service offering links to advertisers for that particular service appear, giving prominence to advertisers who pay more, but letting users sort their results by price or other methods. Some Product PPC advertisings have expanded into the service space while other service engines operate in specific verticals.
Noteworthy PPC advertising services include NexTag, SideStep, and TripAdvisor.
Pay per call
Similar to Pay per click advertising, pay per call is a business model for ad listings in search engines and directories that allows publishers to charge local advertisers on a per-call basis for each lead (call) they generate. The term "pay per call" is sometimes confused with "click to call"[1]. Click-to-call, along with call tracking, is a technology that enables the “pay-per-call” business model.
Pay-per-call is not just restricted to local advertisers. Many of the pay-per-call search engines allows advertisers with a national presence to create ads with local telephone numbers.
According to the Kelsey Group, the pay-per-phone-call market is expected to reach US$3.7 billion by 2010.
History
In February 1998, Jeffrey Brewer of Goto.com, a 25 employee startup company (later Overture, now part of Yahoo!), presented a PPC advertising search engine proof-of-concept to the TED8 conference in California.[4] This and the events that followed created the PPC advertising advertising system. Credit for the concept of the PPC advertising model is generally given to the Idealab and Goto.com founder, Bill Gross.
See also
Internet marketing
Online advertising
Compensation methods
CTR - Click-through rate
CPM - Cost Per Mille
eCPM - Effective Cost Per Mille
CPT - Cost per thousand
CPI - Cost Per Impression
PPC advertising - Pay per click advertising
CPA - Cost Per Action
CPC - Cost Per Click
eCPA - effective Cost Per Action
Ad serving
Search engine marketing
Search engine optimization
