Keyword Marketing - Pay Per Click Advertising

There are many different Pay Per Click Advertising methods.

In most cases we focus on the traditional Keyword PPC method.

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What is Pay Per Click Advertising ?

Pay per click advertising is a search engine marketing technique.

Pay per click (PPC) is an advertising model used on websites, advertising networks, and search engines where advertisers only pay when a user actually clicks on an ad to visit the advertiser's website. Advertisers bid on keywords they believe their target market would search for when they are looking for a specific product or service.

When a user types a keyword query matching the advertiser's keyword list, the theory is that the advertiser's ad should appear on the search results page.

These ads are called "sponsored links" or "sponsored ads" and appear next to, and sometimes, above the natural or organic results on the page. The advertiser pays only when the user clicks on the ad.

Advertisers using these bid on "keywords", which can be words or phrases, and can include product model numbers. When a user searches for a particular word or phrase, the list of advertiser links appears in order of the amount bid. Keywords, also referred to as search terms, are the very heart of pay per click advertising. The terms are guarded as highly valued trade secrets by the advertisers, and many firms offer software or services to help advertisers develop keyword strategies.

Pay Per Call

Similar to pay per click, pay per call is a business model for ad listings in search engines and directories that allows publishers to charge local advertisers on a per-call basis for each lead (call) they generate. The term "pay per call" is sometimes confused with "click to call". Click-to-call, along with call tracking, is a technology that enables the "pay-per-call" business model.

Pay-per-call is not just restricted to local advertisers. Many of the pay-per-call search engines allows advertisers with a national presence to create ads with local telephone numbers.

According to the Kelsey Group, the pay-per-phone-call market is expected to reach US$3.7 billion by 2010.

Pay Per Sale

Google is looking at introducing this model into their mainstream advertising system in the near future. As part of this progression of services, Google recently acquired a privately owned company called DoubleClick.

MOUNTAIN VIEW, Calif., April 13, 2007 - Google Inc announced a definitive agreement to acquire DoubleClick Inc., a global leader in digital marketing technology and services, for $3.1 billion in cash from San Francisco-based private equity firm Hellman & Friedman along with JMI Equity and management. The acquisition will combine DoubleClick's expertise in ad management technology for media buyers and sellers with Google's leading advertising platform and publisher monetization services.

The combination of Google and DoubleClick will offer superior tools for targeting, serving and analyzing online ads of all types, significantly benefiting customers and consumers:

For users, the combined company will deliver an improved experience on the web, by increasing the relevancy and the quality of the ads they see.

For online publishers, the combination provides access to new advertisers, which creates a powerful opportunity to monetize their inventory more efficiently.

For agencies and advertisers, Google and DoubleClick will provide an easy and efficient way to manage both search and display ads in one place. They will be able to optimize their ad spending across different online media using a common set of metrics.

Some In house Terminology

CTR - Click through rate
CPM - Cost Per Mille[nium] (1,000)
eCPM - Effective Cost Per Mille
CPT - Cost per thousand
CPI - Cost Per Impression
PPC - Pay per click
PPI - Pay per interaction
CPA - Cost Per Action
CPC - Cost Per Click
eCPA - effective Cost Per Action

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