Pay Per Click marketing is a relatively new method of marketing affiliate and other products on the internet. In terms of paid advertising, Pay Per Click is probably one of the best, and cheapest, methods of advertising for affiliate marketers.
The principle of Pay Per Click (PPC as it is sometimes called), is that you place your advertisements on major search engines and, even though the ad may be displayed many times, you only pay when someone clicks on your ad.
The whole basis of PPC advertising is that your particular ad is only triggered by certain keywords that you select when you set up your ad. The price that you pay per click for each keyword is determined by auction. In other words, you have to bid on your keywords. The amount you are willing to pay per keyword will determine how high on the page your ad will be displayed. The cost you pay for keywords is based on the demand for them. Therefore, if you bid on a not-so-popular word/phrase, the price you pay per click would be relatively low. However, if the word/phrase you are bidding on is very popular, i.e. in a very competitive market, you will pay more for it.
You can also set a maximum daily budget on your ad so that you do not exceed what you are prepared to pay. In this case, once your ad reaches your daily budget limit, it is withdrawn for the rest of the day. Some search engines allow daily budgets as low as $5 or even less.
The general opinion is that PPC is the most effective means of advertising on the internet today. Your ads are targeted towards people who are actually looking for information or to buy products in the market that you are involved with. This is because the whole system is based on keywords that internet users type into their search engines. In some search engines, you can further refine your target market in terms of country, language and even locallity. This is of great benefit to the marketer as you are not wasting advertising money on people who are likely to have no interest in your product.
Compared to traditional forms of advertising, i.e. tv, radio, newspapers, magazines etc. many of which are very expensive and do not specifically target the market that you want, PPC is very cheap. In traditional advertising, the small business owner has to compete against the “big boys” who can very often negotiate the very best deals with their advertisers.
With PPC, you can track your advertisements and establish how effective your ads are. This can be very difficult with traditional forms of advertising.
Another benefit of PPC advertising is the possibility of placing ads for other people on your own website. When a visitor to your site clicks on an ad, you make money from the search engines. Many marketers are making thousands of dollars a month in revenue from these types of advertisements.