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Wednesday, February 6, 2008

How Pay Per Click Search Engines Work?


You have probably seen ads on the right side of Google search engine listings, or top and bottom of Yahoo search listings. These ads are called “sponsored search listings” or simply PPC ads. They appear whenever advertisers bid on the keywords that visitors are searching for.

Let’s say you’ve decided to advertise on PPC search engine. The first step you do is keyword research. You make a list of keywords that represent your website or product. Later, see how many times people search for these keywords. And then bid on those keywords. Depending on a search engine, bids may vary from 1 cent per click to $100 per click.

If you bid too high, you might run out of funds very quickly. If you bid too low, you may never receive any traffic at all or receive only few clicks. So you have to choose the best cost-per-click for you if you want to get decent traffic and positive ROI (Return on investment).

After bidding on keywords, you also have to write an ad message that will be displayed when a visitor searches for the information relevant to your ad. Then your message is reviewed by staff members. If approved, your ads start running immediately.

So when a visitor enters a keyword or keyphrase that you are bidding on, your message appears next to the search results. If a visitor decides that your message is relevant to his search and attractive enough, he will click on your ad. When he clicks your sponsored listings, the amount of money you choose to bid on that keyword, will be deducted from your account.
You have to be careful though, cause you can run out of funds very quickly if you bid too high.

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