Pay Per Click Advertising has developed a way for marketers to only pay for the displaying of their ad on a host page when it has been physically clicked on by site visitors. When the Pay Per Click rate is based on bids, the company that places the highest bid receives the highest ranking in location on the search engine. However, there can also be the use of a flat rate, where the same rate is charged for all click throughs, and the company’s ranking is based on their effectiveness in matching keywords with those being searched by users. By tweaking your Ad Text to align with user searches your organization can optimize its search engine ranking based on relevancy. Some of the major benefits of a PPC campaign are that it can draw in a highly targeted audience, and it is strictly performance based where you can capitalize on the use of a variety of keywords that are relevant to your product or service offerings.
In an article written by Kenneth Fjell he conducts an analysis of the use of PPC versus PPV rates for advertising from the publishers perspectives. He illustrates how for sites whose click through rate is generally not high it can be much more effective to charge for advertising space based on a pay per view scale opposed to a pay per click. However, when optimization is correctly constructed by that advertiser there could be an increase in the rate of click throughs where a pay per click rate would become more appropriate. His general consensus from his research is that site advertising on banner space is one that can be priced through a trial and error process and can be evolved by the advertisers ability to produce materials that is relevant to its users.
Google is a major player in the pay per click advertising world, where with the development of Google AdWords they allow users to have ads above the search engine results and on the Google Network, which advertisers only pay for when clicked on by users. Of course the amount of times your advertisement is displayed is based on the relevancy of your keywords to those being searched by users. Google has developed a bidding structure to allow for more price effective ways of using Google AdWords, where the positioning of a textual ad opposed to a search results ad used to be the same cost per click for advertisers. It has been proven through the use of pay per click advertising that the content that the site content that your ad appears near can have a significant effect on the appeal it has to users based on site relevancy. Thus the advantage of having your ad placed on a search results list because the user is actively shopping for the information that your ad is providing.
