Pay-per-click (PPC) is a marketing model that displays advertisements on websites and pays the owner of the site whenever an ad gets clicked on. PPC advertisements can provide information and measure interest in products and services, as well as direct traffic to designated sites.
Advertisers select specific keywords that are likely to be used by their targeted customers in search efforts. Businesses can buy listings in the search engines to help make them the first name displayed when a keyword is entered by a person browsing the Internet.
Many websites generate income by using the affiliate model, in which advertisements are displayed on websites and financial incentives are offered to the website owner for any resulting sales. The two income models of PPC marketing are flat-rate and bid-based.
In a flat-rate model, the advertiser and site owner agree on a fixed amount that will be paid for each click. Flat-rate models are generally applied in the case of content sites.
Bid-based PPC advertisements are more common, however. In bid-based models, advertisers compete against one another in either a private auction or public advertising network.
The bids for the keyword target information such as the visitor’s location and the day and time of the search. Advertisers pay for each click received and the actual amount is paid based on the amount that was bid. The company that bids the most has a greater chance of achieving the number-one ranking in the results.
Advantages of pay-per-click advertising
PPC advertising offers advantages because it produces immediate results in directing traffic to your website. The site owner has complete control of the advertisement because he or she can regulate the keywords that trigger the ad and the destination URL to which the visitor is sent after clicking on the ad.
Companies can establish brand dominance in their target markets. A websites such as Homes Alive Pet Centre can maintain a competitive advantage in providing its services — in this case, pet supplies for all kinds of creatures — to the public.
Another advantage is that PPC ads are not affected the way unpaid websites are when search engines perform algorithm updates that can have an adverse impact on the site’s position in the results.
Challenges of pay-per-click advertising
PPC ads pose challenges, however. They can be expensive and require constant updating. To avoid complications, the amount spent per click should be less than the total profit earned. Focused keywords should be used instead of more generic or “broad match” terms.
Keywords should also be organized into exact phrases so targeted customers can find exactly what they require. Businesses should also track conversions, which refers to occasions when a visitor takes the desired action, such as making a purchase or filling out a sales inquiry form.
Benefits to a competitive market
When used correctly, PPC ads can be a great way for an online company such as Homes Alive Pet Centre to educate and direct customers to the best possible products and services — especially if it publishes a blog.
Both education and competition are encouraged, which can help consumers make the most informed choices for the best prices. Quality products are promoted and customers can feel confident about selecting the best options from a trusted source.
