Pay-per-click, often referred to as cost-per-click, or PPC, is an effective method of Internet marketing that enables websites to feature promotional advertisements via search engines like Google, Yahoo and MSN.

How does it work?

Advertisers start by selecting keywords that are related to their business and then bid for ad position similar to a traditional auction. The highest bid receives the number one spot and lower bids receive positions in descending order. Prices range from $0.10 - $20 or more per click.

Advertisers can also customize the ad copy to appeal to their customers and use features like intelligent “Geo-Targeting” to strategically reach customers within local, state wide, national or global market boundaries.

When a consumer searches for a selected keyword, the ad is triggered and displayed, providing an instantaneous online connection between the advertiser and targeted customer.

Why use PPC?

Lower risk, quality and targeted traffic, and a less competitive marketplace are three huge advantages of pay-per-click over other forms of advertising.

• Lower Risk: PPC is lower risk because you are only charged when someone actually "clicks" the ad and visits your website. Many other types of advertising charge you for just displaying the ad (you still get charged even if your ad is overlooked).
• Quality Traffic: Many studies have shown that online consumers use search engines to research and purchase new products and services. Over 85% of people use search engines to find information (Source: Georgia Institute of Technology).
• Targeted Traffic: Search engines provide advertisers with many tools to effectively target consumers, which in turn increase the quality of traffic and maximizes results.
• Less Competitive Marketplace: PPC advertising is new and many businesses do not know how to utilize this form of advertising effectively. If you beat them to the punch, you benefit from lower prices.

Overall, Internet marketing with pay-per-click offers total flexibility and complete control over every marketing dollar by utilizing advanced campaign management features not found with traditional forms of Internet advertising.

• Nearly instant exposure
• Only pay when someone “clicks”
• Changes can be made quickly so ads or entire campaigns can be adjusted based on seasonal shopping trends, sales data or new product launches.
• Appeal to customers searching for your product or service
• Fully customizable ad copy
• Highly targeted demographics