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Article Title:
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What's All the Buzz? - Search Engine Pay Per Click (PPC) Advertising

Article Description:
====================

One of the hottest forms of advertising on the Internet today is
Search Engine Pay Per Click (PPC) advertising. If you've heard
the terminology, but you're not sure what all the buzz is about,
this article is for you.

Additional Article Information:
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899 Words; formatted to 65 Characters per Line
Distribution Date and Time: 2006-08-31 10:36:00

Written By: Rob Favero
Copyright: 2006
Contact Email: mailto:screen@goingup.us

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What's All the Buzz? - Search Engine Pay Per Click (PPC) Advertising
Copyright � 2006 Rob Favero
Laugh Vitamin Humorous
http://laughvitamin.goingup.us

The basis for this form of advertising is "pay per click."
This means that an advertiser only pays when someone clicks on
the advertiser's ad.

So let's say you have an ad, and it gets displayed 100 times.
But so far no one has really been paying much attention to it.
Then, person 101 comes along and clicks on your ad. Boom.
That's when you pay -- only when the person clicks.

This is a great deal for advertisers. Clearly, at those points
when no one is paying attention to your ad, it has zero value for
you. But at the point that someone takes focused interest in
your ad -- a specific, click-through interest -- the ad takes on
value. So you only pay for ads with value.

But in recent years, the power of pay per click advertising has
risen to a new level.

One of the most critical aspects of effective advertising, the
kind that generates income, is its ability to reach people who
are looking for what you have to offer. This concept is simple,
but finding an audience who wants what you have is easier said
than done.

So here's the question. What places on the Internet have vast
awareness of the things and topics people are looking for?

The answer is search engines.

Think about it. Helping people find the things and topics they
want is the whole reason for search engine existence.

The innovation in the last several years has been to combine
search engine results with PPC ads.

And it's no surprise that the big players in this game of search
engine advertising are Yahoo! and Google. Yahoo! provides this
service through its Yahoo! Search Marketing
(http://searchmarketing.yahoo.com/). Google Adwords
(http://adwords.google.com) is Google's offering.

Undoubtedly, you've seen this type of advertising, maybe without
even realizing it. Whenever you do a search on Google or Yahoo!,
more often than not your search results will include entries with
a label of "Sponsor Results." They appear along the top or to
the right side. These are PPC ads, and they are related in some
way to the search you did.

So what's the cost for this type of advertising? It's not a
simple answer.

One of the key factors in the cost is page position. It's no
surprise that the top position is generally the most effective ad
position. And the top positions go for the most money.

But there isn't a set amount for a particular spot on a search
results page. You can't go to Google or Yahoo! and find out
precisely how much a particular spot costs.

That's because page position is decided through bidding.

Now, remember, you don't actually pay to display your ad. You
only pay when someone clicks on your ad. So when you set up an
ad campaign, you set a maximum amount you are willing to pay for
a click. This amount becomes your bid. You also choose keywords
that determine the search results your ad gets displayed with.

Then, when a person runs a search, the search engine finds all
ads that are eligible to be displayed for the search. It
compares bids, and the highest bidder gets position 1. The next
highest gets position 2, and so on.

Isn't that mind-boggling? That every search you run results in
a mini-auction of advertisers vying for your attention?

Because of this bidding process, ad costs vary greatly, depending
on the particular search that was run. Ads displayed on searches
for which there are few competing ads can go for pennies per
click. However, with searches related to lucrative business
endeavors -- say insurance, for example -- top spots can easily
go for dollars a click.

This description of the bidding process covers Yahoo! Search
Marketing, but it only approximates the process used by Google
Adwords. Google adds a variation to their service, and it
provides an interesting twist to the basic model.

With Google, determining position on a search page depends on
some combination of bid amount and relevance. The more relevant
your ad is to a set of search results, the lower your bid has to
be to earn a position over another, less relevant ad.

The precise definition of relevance is elusive, but surely an ad,
for example, of scuba gear on a search for bicycles would almost
certainly have low relevance.

So Google rewards relevance -- and creativity. Advertisers who
figure out how to create a highly relevant ad can reduce costs
over that of their competitors. It's a factor in the equation
that evens things out a bit between small and large advertisers.
It's a factor that you can leverage, if you can create highly
relevant ads in your campaign.

Search engine PPC advertising has taken a prominent position on
the Internet because of two primary features. First, advertisers
are charged only for ads with actual value; you only pay when
someone takes notice and clicks on your ad. Second, the
advertising is targeted; people see your ad while they are
actively searching for what you have. The combination of these
two features creates a powerful tool for Internet marketing.

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Marketing Bytes

Thursday, August 31, 2006

ArticleBlaster What's All the Buzz? - Search Engine Pay Per Click (PPC) Advertising

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