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By: Will Jones
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How does Pay Per Click work?

An often asked question amongst people who are new to online marketing is "How does Pay Per Click work". Well, simply stated, pay per click allows you to effectively "buy your way" to the top of the search engine ratings.



How does Pay Per Click work with the search engines?

Whenever you run a search on any of the major search engines, you will notice that alongside the usual list of results, you will also see a set of results labelled " Sponsored Results" or "Sponsored Links" All of these "Results" and "Links" are actually paid advertisements for the exact search phrase and/or words you have typed into the search box.

The ranking position of these advertisements are based on how how much a business is willing to pay for each word or phrase. This is done slightly differently by Google who base theirs on a combination of the bid amount combined with the websites popularity.



The advertisements are purchased through Pay Per Click suppliers. The two biggest suppliers are Google's Adwords and Yahoo's Overture.



Why would I pay for traffic - How does pay per click work to make it worthwhile? If your website already ranks amongst the first three in the search engine rankings purchasing traffic probably appears less than appealing. For the remaining 99% however, If they can make more from a visitor than it costs to get them there, then they are producing guaranteed profits. After all, they can chose the exact search terms they wish to advertise on and they only pay when the searcher actually clicks on their ads.



How does pay per click work profitwise?

From this we can see that the main aim of the advertising campaign must be to bring in more money than it cost to run the campaign - What is left is guaranteed profits. With careful analysis you can work out which ads and search terms are making money and which aren't allowing you to home in on the successful ones and thereby increase your profits.

How does Pay Per Click work - Tip 1:

Track your results. Only by tracking your results will you know what works and what doesn't. Both Google and Overture provide free tracking tools - use them. if you don't know what works you are just throwing your money away.

How does Pay Per Click work - Tip 2:

Always use a large number of (relevant) search phrases. Have a good old brainstorming session and think of your product names, descriptions and the sort of search phrases that your customers would use - The more, the merrier.

How does Pay Per Click work - Tip 3:

Use different ads for each search phrase. Use unique ads for the individual search phrases. Ads that are closely matched to their search phrases receive far more clicks and result in far more targeted traffic than campaigns that rely on blanket or catch-all ads.

How does Pay Per Click work - Tip 4:

Send clicks to the appropriate page of your website. If the ad refers to a particular product or service, don't just send them to your homepage and hope that they will find their own way - they are more likely to just click back to the search results.

What are you waiting for. Hopefully I have been able to take you somewhere towards answering the question "How does Pay Per Click work" As we speak, millions of customers are searching for the exact product or service you are selling. If your site is not in there at the top of the search results, you can bet your customers will be.

If this article has peaked your interest in Pay Per Click, You might like to check out the following links:

Pay Per Click Advertising Secrets Exposed

How To Generate Highly Targeted Pay Per Clickleads

Download Competitors Keywords And Adwords

About the author:

Will Jones has been Marketing and building websites for the last six years. His latest website LoadsaFreeMovies offers free Classic Movies and TV shows.
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