Thursday, May 28, 2009

Pay Per Click Basics

By Sean Galusha

The internet has become a means to make money and it offers a lot of opportunities to earn more like auction, online sales, affiliate marketing, bidding, online advertising and the widely known pay per click marketing.

Pay per click marketing or PPC works as a tool used for online advertising. Along with PPC are other internet tools such as the Search Engine Optimization (SEO) and SEO networks, Google Adwords and blogs.

Pay per click marketing is an important online advertising tool. Online businesses and websites often use it to promote their businesses and their websites. In offline advertising, most companies use billboards, newspapers, television and radio commercials, pamphlets and flyers and other creative means. Businesses who want to advertise on these methods pay the advertisers for displaying their ads or logos, or for airing or printing their ads.

In the internet, advertising is usually done in websites where website owners allocate a space for ads, logos and links of those who want to advertise. In the physical world, advertising is done and cost is determined by the number of minutes an ad is aired on television or radio or the space used in a newspaper or the size of the billboard.

In the online world though, no one is really sure how many people can see the advertisements. Although there are ways to check the amount of traffic on a particular website, one cannot measure the impact of the advertisement.

So as not to lose money, companies will only pay these websites that advertise their products if the advertisement link was actually clicked. Thus, the name Pay Per Click Marketing was conceived.

In pay per click, the website owner will be paid a corresponding rate when an ad is clicked. However, advertising can go bad if the owner will click the ad many times just to earn from it.

There is a solution here. Companies will insert a code in the website to determine that the clicks made to the advertisement link came from different computers or sources. This way, both parties are sure that there is no cheating involved. This is a very effective kind of marketing because companies will know that their site was visited, at least.

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