What is PPC Advertising and How Does it Work?

May 29, 2010 by  Filed under: PPC 

There are many forms of advertising on the internet, some advertising is free, but requires a lot of time and effort to generate the required traffic to your website. PPC or pay per click advertising involves a fee which is payable for every click that a person makes on your advert, but has the potential to drive massive amounts of traffic to your website with minimal work.

Pay per click is one of the most dangerous forms of advertising if you do not have any internet marketing experience and should never be used when you are first starting out because it will more than likely get you into debt.

If you search for something on the internet using Google, when the results are shown, you will see a whole lot of adverts under the sponsored links heading on the right hand side of the screen, these are Google AdWords pay per click Adverts.

When a person clicks on one of these adverts to see where it leads to, the advertiser is charged for that click by Google. The adverts are normally highly targeted towards certain keywords that target niche markets at the lowest possible cost, or are at least productive enough to provide the advertiser with a profit from sales generated from clicks onto the advertiser’s website.

The danger with pay per click advertising for the novice internet marketer, is that it is so easy to pull out your cash in anticipation of ground breaking sales, only to find out that you do not have an effective enough strategy to keep your advertising as targeted as possible, your focus is on the wrong niches and your keyword bids are too high. The end result unfortunately is no sales and a huge bill payable to Google.

Although it only takes a few minutes to put up an advert using the Google AdWords, program, there are other factors that need to be well researched, like:

1.The set of keywords that you should target.

2.The affordability of your keywords.

3.How many clicks are you going to be able to receive per day on average based on your daily budget?

4.If the sales conversion rate is an average of two sales per one hundred clicks, will you be able to break even or will the advertising campaign not be worth your trouble?

Many of the choices that you will have to make in PPC advertising will be based on experience, which may cost you dearly. The best approach to this form of advertising is to educate yourself as much as possible on this topic before you get involved with your first campaign.

Ensure that the information that you use is from reputable and well established internet marketers that are not part of some scam. The warrior forum may be a good place to start your research for free. If you do not have any spare cash to do PPC advertising, you should consider doing article marketing and other free forms of advertising to generate capital which you can later use for your paid campaigns. The benefits of free advertising are that they will teach you how to effectively market products to your prospective customers, which will ultimately put you in the correct mindset and save you a lot of money when you decide to venture down the PPC advertising path.

Wade has been writing articles online for over two years now. Come visit his latest website at http://www.costumejewelryearrings.org/ which helps people find great costume jewelry earrings and information to make the best choice for their desired look.

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Wade Ryan - EzineArticles Expert Author

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