What is PPC and How Does it Relate to SEO ?

An article explaining the basics of PPC - Pay Per Click - Advertising and how PPC ads can affect website traffic and business. 

  This article examined SEO, how it works and what it means. However one major and affiliated subject under the umbrella of SEO is PPC, or Pay Per Click. PPC – or Pay Per Click Advertising to explain the whole term – does exactly what it says on the tin. Every time a user clicks, someone pays. But who, why, and how useful is PPC to your website?

What PPC Advertising is and What PPC Ads Do

PPC is everywhere on the Internet. On most websites and almost every time a user types in a search term and the results are listed, there are visible examples of PPC advertising. These ads are the small web links with a short description underneath, usually bordering the left, right, top or bottom of the screen. Examples even accompany this article on the left and go so far as to bisect it, cutting though the article proper with PPC ads.
Following the way a PPC ad works is simple. A user searches for a word using Google, Yahoo!, Bing or any search tool, and displayed along with the results are a series of PPC ads. These ads are displayed as part of various Internet marketing and Pay Per Click advertising campaigns that companies use in support of their websites. Clicking on an ad will take the user to the advertised company’s website, and with good PPC will take the user to a specific page in that site.
Which Pay Per Click advertisements are displayed works in a similar way to how websites are listed in a search engine, but led more by the companies involved. Companies do KEI research to find out which search terms (or ‘keywords/ keyword phrases’) they would like to be more visible to users for. For example, an ‘Anon’s computer parts’ company will obviously want to be very visible to users who search for the keyphrase ‘computer parts.

Companies may also want to increase their advertising and visibility as well as increase the number of people that view their site (click through rate) and the number of people that buy something/sign up for a mailing list etc. on their site (conversation rate). To do this they employ PPC ads. Taking the example above, if the user searches for ‘computer parts’ the ‘Anon’s computer parts company' may want to take out a PPC ad for this keyword phrase. This means that a small ad would appear next to the main search listings saying ‘Anon’s computer parts’ with a brief description of what they offer.


Who Pays for PPC Ads ?

Clicking on a Pay Per Click ad incurs no monetary cost for the user, in the same way that watching the advertisements on TV doesn’t cost the viewer. As in the TV example, it is the company that is doing the advertising that pays for the ad, however in a different way.


With a TV ad a company might buy specific ad time, want ad placement or target their ads to come on after specific programmes who’s viewers are a target demographic for the company’s products. This specialisation with PPC ads is done via keywords as explained above – rather than being there for a set time or after a certain programme, PPC ads are targeted to specific Key words and search phrases. However Pay Per Click advertisements can be much more cost effective to companies.

Whereas a TV ad costs a set amount per second, specific time slot or time placement regardless of success, the bulk of the advertising cost for PPC ads comes only when a potential customer clicks on the ad (often with a small start up or maintenance fee for the service). Advertisers pay a small amount to the search engine or website provider each time a user clicks on their ads – hence the name Pay Per Click – which often makes PPC extremely cost effective.

Targeted, specific ads that cost in real terms only when they are accessed are a great investment for many companies; when used properly PPC can re-invigorate websites and hugely increase web traffic for a proportional rather than blanket increase in cost.
Source : http://www.suite101.com/content/what-is-ppc-and-how-does-it-relate-to-seo-a252307

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