PPC Advertising Model

Pay Per Click or PPC originated from the Internet advertising model: every time a user clicks on a text-based PPC search engine ad, the advertiser is billed for the cost of that click associated with the PPC keyword (or search term) and PPC ad.

PPC text ads usually appear on the right side of search engine results as ‘Sponsored Links’.

    google adwords ppc text ads

PPC Optimization

PPC advertising through search ad auction system is a guaranteed method of driving traffic to your website via search engines.

Professional PPC specialists optimize PPC campaigns:

  • Find relevant keywords (via SEM keyword research tools).
  • Manage highly targeted keywords’ rank bidding.
  • Discover the most profitable balance between the cost-per-click (CPC) and revenue generated on each keyword based on a projected conversion rate.

The highly popular keywords are more competitive which lead to higher keyword CPC and higher overall cost of a PPC campaign.

  • Professionally written PPC ad copy will result in a sufficiently high click through rate (CTR) with a high conversion rate and an affordable CPC.
  • Each successful PPC campaign will takes trial-and-error in testing.

PPC metrics including quality score, CTR, conversion rates, CPC have become terminologies in PPC.

PPC’s History

Goto.com was the first search engine to launch the PPC advertising model and was later renamed Overture.com. Overture determined ad rank only base on keyword cost-per-click bid auction algorithm. Yahoo acquired Overture in 2003 and later re-branded it Yahoo Search Marketing (YSM).

In 2001, Google launched Adwords, Google’s own PPC auction system, but added click-through-rate (CTR) as a major factor into the ad ranking algorithm. In 2006, Microsoft launched the pay-per-click platform Adcenter.

Adwords, YSM and Adcenter went onto become the number 1, 2 and 3 pay-per-click search engines respectively in the US market. Google Adwords Quality Score, which includes CTR, is used as the major factor in the search auction system to rank sponsored ads which makes Google’s ad quality surpassed those of Yahoo’s and Microsoft’s in the US and globally.

In China, Baidu Phoenix Nest is the number 1 PPC search engine regarding search traffic volume.

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