This is a guest post written by Miles Walker. If you would like to write for us, do check our guest posting guidelines.
There are many ways to advertise a website. One of the most common is pay-per-click advertising. Despite how many times you may have heard of pay-per-click advertising, you may still be unclear on what it is and how effective it can actually be. To help, below is some information everyone should know about pay-per-click adverting.
What Is Pay-Per-Click Advertising?
Pay-per-click advertising or PPC advertising is an advertising model specifically used to promote websites. As the name suggests, certain website owners are paid for the number of click through they produce for another website via an advertisement.
However, a growing trend has been the use of pay-per-click advertising by the major search engines. Search engines such as Yahoo and Google now offer website ads on the pages where naturally produced search engine results also appear. These ads are usually obtained through auction. Whoever bids to pay the most to the search engine for each click through wins the ad space.
What Are The Benefits Of Pay-Per-Click?
The most obvious benefit to this advertising strategy is the efficiency of its cost model. For other advertising methods, one flat rate will be changed no matter how many actual visitors are produced. With pay-per-click, on the other hand, a website owner only pays for the actual number of visitors that an ad produces. Because of this, it can produce more bang for the advertising dollar.
The second obvious benefit is this advertising method is it can be very targeted. You can choose exactly the customers you want to go after by selecting certain websites to carry your ads. You can also choose the exact keywords you want your ads to be associated with on the major search engines.
What Are The Down Sides To Pay-Per-Click?
Of course, there are downsides as well. Due to how well this advertising strategy works, it can eat through an advertising budget very rapidly. This can be a problem if far more non-paying visitors go to your site through such an ad than the number of people that actually spend money at the site.
It can also be quite expensive due to the bidding process that search engines employ. If there are many competitors in the same market, the bidding can result in very high prices. In other cases where there are no bidders, prices may still be stuck at relatively high levels regardless.
Exactly How Effective Is Pay-Per-Click?
The answer to this question is that pay-per-click can be very effective. It is on the most efficient advertising methods that has yet to be invented. It can also be extremely targeted to go after very specific customers.
The one downside, however, is cost. A cost benefit analysis must be preformed before devoting too much money to this strategy. If a site already has enough exposure with customers without pay-per-click, cheaper strategies may prove more cost-effective.
Author Byline: Miles Walker looks at car insurance quotes over at CarinsuranceComparison.Org.