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PAY PER CLICK ADVERTISING EXPLaINED
Pay per click ("PPC) advertising is an Internet advertising model (advertising technique) used on search engines, advertising networks, and content websites, such as blogs, where advertisers only pay when a user (potential customer using Google, Yahoo or MSN) actually clicks on an advertisement, which then brings the user/potential customer) to visit the advertisers' website.
With search engines, advertisers typically bid on keyword phrases relevant to their target market.
Keyword-based pay per click advertisers bid on search terms—keywords consisting of words or phrases, and possibly product model numbers. When a user searches for a particular keyword, the list of advertiser links appears, where the ordering of those links is based on the amount bid for the given keyword. Keywords are the very heart of PPC ( pay per click) advertising, and are guarded as highly-valued trade secrets by the advertisers.
When a user (customer) types a keyword query ( a search word or phrase, into Google or Yahoo) matching an advertiser's keyword list, or views a web page with relevant content, the (sellers’) advertisements may be displayed. Such advertisements are called sponsored links or sponsored ads, and appear adjacent to or above the "natural" or organic results on search engine results pages, or anywhere a webmaster or blogger chooses on a content page. Content websites commonly charge a fixed price for a click rather than use a bidding mechanism, as in pay per click advertising.
Although many PPC providers exist, Google AdWords, Yahoo! Search Marketing, and Microsoft adCenter are the largest network operators in pay per click advertising as of 2007. Minimum prices per click, often referred to as costs per click (CPC), vary depending on the search engine and the level of competition for a particular phrase or keyword list—with some CPCs as low as US$0.01. Very popular search terms can cost much more on popular search engines. The PPC (pay per click) advertising model is open to abuse through click fraud, although Google and other search engines have implemented automated systems to guard against abusive clicks by competitors or corrupt webmasters.[1]
This describes Google “pay per click” advertising, from their own website.
This is the relevant top half of the page:
This is the second half of the page, less a bit at the bottom of the page, describing “adwords”, which is “keywords” and “pay per click” combined:
Different Types of Pay per Click Advertising – but it’s all about “Keyword”
Pay per click advertising campaigns can be categorized into two major categories: sponsored match (or keyword) and content match. Sponsored match campaigns involve the display of advertisements on search engine results pages, whereas content match campaigns involve the display of advertisements on publisher websites, newsletters, and e-mails.[2]
There are other types of pay per click advertising programs that target product or service searches and product comparison sites. Search engine companies may participate in more than one category. PPC programs do not generate any revenue solely from Web traffic for websites that display the advertisements: Revenue is generated only when a user clicks on the advertisement itself.
Keyword-based PPC
Keyword-based pay per click advertisers bid on search terms—keywords consisting of words or phrases. When a user searches for a particular keyword, the list of advertiser links appears, where the ordering of those links is based on the amount bid for the given keyword. Keywords are the very heart of PPC (pay per click) advertising, and are guarded as highly-valued trade secrets by the advertisers. As of 2007, the following are notable PPC keyword search engines:
* Ask.com
* Baidu
* Google AdWords
* LookSmart
* Microsoft adCenter
* MIVA
* Yahoo! Search Marketing
* Yandex
Brief History of Pay Per Click Advertising
In February 1998 Jeffrey Brewer of Goto.com, a 25-employee startup company (later Overture, now part of Yahoo!), presented a pay per click advertising search engine proof-of-concept to the TED8 conference in California.[6] This presentation and the events that followed created the PPC advertising system. Credit for the concept of the PPC model is generally given to Idealab and Goto.com founder, Bill Gross.
Google started search engine advertising in December 1999. It was not until October 2000 before the AdWords system was introduced, allowing advertisers to create text ads for placement on the Google search engine. However, PPC advertising was only introduced in 2002; until then, advertisements were charged at cost-per-thousand impressions. Yahoo! advertisements have always been PPC-based since their introduction in 1998.
With search engines, advertisers typically bid on keyword phrases relevant to their target market.
Keyword-based pay per click advertisers bid on search terms—keywords consisting of words or phrases, and possibly product model numbers. When a user searches for a particular keyword, the list of advertiser links appears, where the ordering of those links is based on the amount bid for the given keyword. Keywords are the very heart of PPC ( pay per click) advertising, and are guarded as highly-valued trade secrets by the advertisers.
When a user (customer) types a keyword query ( a search word or phrase, into Google or Yahoo) matching an advertiser's keyword list, or views a web page with relevant content, the (sellers’) advertisements may be displayed. Such advertisements are called sponsored links or sponsored ads, and appear adjacent to or above the "natural" or organic results on search engine results pages, or anywhere a webmaster or blogger chooses on a content page. Content websites commonly charge a fixed price for a click rather than use a bidding mechanism, as in pay per click advertising.
Although many PPC providers exist, Google AdWords, Yahoo! Search Marketing, and Microsoft adCenter are the largest network operators in pay per click advertising as of 2007. Minimum prices per click, often referred to as costs per click (CPC), vary depending on the search engine and the level of competition for a particular phrase or keyword list—with some CPCs as low as US$0.01. Very popular search terms can cost much more on popular search engines. The PPC (pay per click) advertising model is open to abuse through click fraud, although Google and other search engines have implemented automated systems to guard against abusive clicks by competitors or corrupt webmasters.[1]
This describes Google “pay per click” advertising, from their own website.
This is the relevant top half of the page:
This is the second half of the page, less a bit at the bottom of the page, describing “adwords”, which is “keywords” and “pay per click” combined:
Different Types of Pay per Click Advertising – but it’s all about “Keyword”
Pay per click advertising campaigns can be categorized into two major categories: sponsored match (or keyword) and content match. Sponsored match campaigns involve the display of advertisements on search engine results pages, whereas content match campaigns involve the display of advertisements on publisher websites, newsletters, and e-mails.[2]
There are other types of pay per click advertising programs that target product or service searches and product comparison sites. Search engine companies may participate in more than one category. PPC programs do not generate any revenue solely from Web traffic for websites that display the advertisements: Revenue is generated only when a user clicks on the advertisement itself.
Keyword-based PPC
Keyword-based pay per click advertisers bid on search terms—keywords consisting of words or phrases. When a user searches for a particular keyword, the list of advertiser links appears, where the ordering of those links is based on the amount bid for the given keyword. Keywords are the very heart of PPC (pay per click) advertising, and are guarded as highly-valued trade secrets by the advertisers. As of 2007, the following are notable PPC keyword search engines:
* Ask.com
* Baidu
* Google AdWords
* LookSmart
* Microsoft adCenter
* MIVA
* Yahoo! Search Marketing
* Yandex
Brief History of Pay Per Click Advertising
In February 1998 Jeffrey Brewer of Goto.com, a 25-employee startup company (later Overture, now part of Yahoo!), presented a pay per click advertising search engine proof-of-concept to the TED8 conference in California.[6] This presentation and the events that followed created the PPC advertising system. Credit for the concept of the PPC model is generally given to Idealab and Goto.com founder, Bill Gross.
Google started search engine advertising in December 1999. It was not until October 2000 before the AdWords system was introduced, allowing advertisers to create text ads for placement on the Google search engine. However, PPC advertising was only introduced in 2002; until then, advertisements were charged at cost-per-thousand impressions. Yahoo! advertisements have always been PPC-based since their introduction in 1998.
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