Pay Per Click Advertising ( PPC ) : Effective Advertising For Online Marketers

What is Pay Per Click advertising? Pay per click or otherwise known as PPC, is the advertisement that advertisers put on major search sites in prominent locations for a significant fee per actual user click. The order in which the ads are listed is usually determined by the highest dollar amount, but companies like GOOGLE use a combination of dollar amount and click through averages to determine the prominence of the listing.

A higher dollar amount does not always mean that you will get the highest placement in all cases. Suppose your keyword phrase is "SEO marketing in Dallas" and a cost per click (cpc) is 5 dollars. From our understanding and usage, on Google that would mean that the bid can go up to 5.00 dollars per click, with a average perhaps at 3.00 per click. If all the competitiors are at 2.99, that does not exactly determine that your ad will be first place; however, if the click through ratio is higher then the others and your peak bid is higher than the others, you will be first place.

How can one determine a PPC budget?
Determining a budget for your pay per click really depends on what you may have available. One thing is for certain is that you advertising and marketing account should never stand still. As business and competition changes, so should an advertising budget. A good way to start out and begin testing your advertising accounts is to assume that you will not get any sales from your account within the first couple of weeks. With that in mind, ask yourself what can you afford for this part of your online advertising. After two weeks, reevaluate your budget based on money earned and not on speculation. After doing this process repeat the cycle and reevaluate. Over time you will find what works and does not work. Online advertising works for every business, but your advertising campaign may or may not.