Pay per click (PPC), also called Cost per Click, is an internet advertising model used to direct traffic to websites, in which advertisers pay the publisher (typically a website owner) when the ad is clicked. It is defined simply as “the amount spent to get an advertisement clicked.”
Unlike generalized portals, it implements the “Affiliate Model”, which provides purchase opportunities wherever people may be surfing.
It does this by offering financial incentives (in the form of a percentage of revenue) to affiliated partner sites. The affiliates provide purchase-point click-through to the merchant.
It is a pay-for-performance model: If an affiliate does not generate sales, it represents no cost to the merchant. Variations include banner exchange, pay-per-click, and revenue sharing programs.
Here is an example of how PPC ads show up on search against organic listings.
Three things Pay Per Click can do for you
It eliminates the time, effort, and costs of building and maintaining web pages. The only time you'll have to pay is when someone clicks on your ad.
It allows you to do affiliate marketing without cluttering up your own site with links that might send potential customers away. You can keep your site clean and focused on its job of selling your product, but still make commissions off other people's products.
It eliminates an extra click for users. One click less for them means more commissions for you.
How Can Pay Per Click help your Business grow?
Here are some four points to consider:
Start with a big, broad market
Choose a broad market where there's a lot of searching going on. You want to get as many eyeballs as possible but also within you budget which can be scheduled - Daily, weekly or monthly depending on your campaign size.
Do some keyword research
Don't build your ads on broad, non-targeted keywords, though. The competition for those will be fierce and expensive.
Your objective here is to find neglected, low-cost keywords within a broad, high-traffic market--and that's why it really helps to have keyword research experience. And as I mentioned in an earlier article, you need to look for specific problems that are shared by a lot of people within a market.
Then find relevant keyword terms that clearly show an intention to buy or find out more information. Those terms are much more likely to convert. And remember, you pay for every click, but you get paid only when they convert.
The Microsoft Advertising Intelligence tool can show you almost anything you'd like to know about any given keyword, including similar keywords, traffic, cost per click, and much more.
The free Google AdWords Keyword Tool is also a quick and handy way of getting ideas for keywords with high search volume and low cost per click; just keep in mind that you can't use this strategy with Google.
Find a good affiliate merchant that targets your niche
In order to find a merchant that offers a relevant product and pays you a good commission, check out these affiliate networks and directories:
Write a PPC ad that drives buyers to your merchant site
Take a good look at the landing page your ad is pointing at and make your ad directly relevant to it.
Your ad must:
- Address the specific problem you've identified.
- Include the keyword you've bid on, preferably more than once.
- Reflect the keywords of the landing page.
- Highlight a benefit of the product.
- Include a strong call to action.
Download this Free PPC Guide!