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The Good and Bad of Pay Per Click Click Advertising

Over the past 10 years, the World wide web has revolutionized the way that individuals do business. While large corporations have a significant business presence on the Web, the nature of the World wide web allows small business to compete on equal footing. Amazon may have a famous Website, but there is nothing to prevent Bob Smith from opening a competing web site called BobSmithsBooks. With the World wide web, there is room for everyone to do business.

Having a presence on the World wide web hardly guarantees success in business, however. In order to make sales, you have to have visitors to your website. Drawing visitors, or “Web traffic“, is probably the greatest problem that most Website owners face when putting their business online. One can market a business making use of conventional offline methods, such as magazines or television, but most Website owners might prefer to try to attract visitors that are already on the World wide web. For drawing customers who are already on the Internet, there may not be a more suitable or faster technique of obtaining traffic than pay per click advertising.

Pay per click, or PPC advertising, is an advertising technique where businesses can purchase advertising space with the major search engines. When someone does a search using Google, for example, paid advertising appears right alongside the free search results that Google provides. Advertisers bid for top placement on these pages by bidding on the search terms themselves. They pay the search engines each time a visitor clicks on the link in one of the ads. Depending on the search topic, the bids may vary from as little as a couple of cents to as much as $100 for each click.

There are a number of advantages to making use of pay per click advertising over other media:

The results are fast. With Google’s AdWords, advertisers can produce their ad and have it shown to customers in as little as five minutes. No other advertising medium offers the opportunity to have ads shown to the public that quickly.

The advertiser chooses the price. Advertisers bid on the price they are willing to pay. This allows advertisers with modest budgets to still have their ads shown next to the ads of businesses with deeper pockets.

Advertisers can set daily, weekly, or monthly budgets. You can limit your spending to the amount that you can afford. If you possibly can merely afford to spend $100 for each month on advertising, you can decide if the ads are to be shown all at once or spread out over the day, week or month.

The advantages of pay per click advertising are obvious. You can occasionally have visitors in a few minutes and you can spend as little or as much cash as you like.

There are a few potential problems with pay per click advertising, though:

The market is competitive. Prices vary widely in addition to diverse search terms. If you’re bidding on terms that are especially competitive, you may find that you will be forced to pay a number of dollars for each click when your spending plan may only allow a couple of pennies. If fifty advertisers all outbid you, your ads may be shown on a page where few people will see them.

Not all search terms produce good results. You may find yourself bidding on terms that bring visitors to your web site but don’t produce sales. Pay per click advertisers need to carefully monitor the performance of their ads to make sure that the terms they are bidding on generate both traffic and sales.

While the pay for every click advertising model is quite effective, it can in addition provide a great opportunity to spend a number of cash on advertising without a lot to show for it. Anyone who is thinking about trying their hand at PPC advertising should probably start with a modest daily budget and be willing to engage in a number of experimentation in order to find the ads and search terms that work best.

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