Pay Per Click (PPC) Overview
Paid placement is, as the name implies, is paid traffic. In the Paid Placement advertising model, advertisers bid for keywords or key phrases that are relevant to their business. Advertisements are bought and sold on a PPC (Pay Per Click) pricing model.
The PPC is determined by the relative demand and willingness to pay of other advertisers competing for the same keywords or key phrases. In addition, the price you pay per click will be impacted by your click-through rate, and for some search engines, the length of time that users stay on your site.
The key to paid placement, much like SEO, is to go after the most relevant keywords and key phrases to ensure that the traffic generated is qualified traffic with the highest likelihood of converting to a paid customer or qualified sales lead.
The advantage of paid placement over SEO is that traffic can be generated as quickly as you can submit a keyword bid from a funded account with a search engine.
The disadvantage is that there is an incremental cost for each visitor clicking on one of your advertisements, therefore, it is critical to monitor conversion rates and bid prices to ensure you are achieving your target ROI.
Let’s look at an example to help clarify. In the image below, the paid placement search results for a Google search for prepaid cell phones are enclosed in the highlighted rectangles at the top and right regions of the picture below. The links are labeled sponsored links. The organic search results, resulting from search engine optimization effort, are located at the center of the page in the greyed out region.
Contact eBiz ROI if you are interested in learning more about options to drive near term traffic, qualified traffic to your site.