Pay per click or PPC is a common language among marketers online. It is a very popular way to generate traffic and to earn money online. This type of advertising is also very cost-effective making it all the more preferential to many advertisers and publishers. However, it is also a very risky type of advertising. If not done properly, you risk spending more for the target audience you want to generate and getting less return of investments.
What Is PPC and How Does It Work?
If you are accustomed to using Google and other search engines, you might have come across PPC ads. For example, if you search a query for "article marketing" on the search box and press enter, you will get a list of websites as results to your query. But before these, there is a section that includes Sponsored Ads related to "article marketing". These are examples of PPC ads.
How do these ads get to the Sponsored Ads along with the other unpaid results? First, the search engines and other websites sell the listings in an auction. Advertisers get to be in the listing of sponsored ads by bidding on the keywords they think are related to their businesses. The price of the keyword depends on the quality score of the keyword. Several variables such as the demand of the keyword and the number of websites using the keyword determine the price of the keywords.
What Are The Advantages of PPC?
PPC is very simple and cost-effective. If you know how to turn PPC into your advantage, you can place your ads in a very strategic position for millions of internet users to view. You pay enough for an advertisement that is sure to give you the best results. You can easily generate traffic immediately after winning the bid on the keywords. Also, you can adjust your PPC advertisements every time there are changes to your business plan. After you launch your PPC ads, all you have to do next is to monitor the performance of your ads and inflow of money.
The key to gaining advantage in PPC is to do well in the bidding process of keywords. The advantage lies not in whether you have outbid your competitors but whether you have chosen the best set of keywords for your particular needs.
What Are The Disadvantages of PPC?
The disadvantage is that if you are not wary during the auction, you could get caught in the rush of bidding and outbidding your competitors. You, like your competitors, want to be on the top of the list. But, just how much are you willing to pay to get to the number one of the listing? Are you willing to gamble at all costs?
Pay per click may also be a lucrative business. But, if you want to generate more traffic, you need the help and support of affiliates. However, your partners and their affiliates might be taking all the credit of your PPC campaigns. Despite your good performance, you might be earning less in PPC.