Introducing Pay Per Click
For a small business, pay-per-click search engines are the one ofthe best ways to advertise on the Internet: - You have exact control over how much you're prepared to pay to get each visitor.
- It's incredibly cheap. You can pay as little as $0.01 (and sometimes even less) to get a qualified, interested, visitor to your site.
(The minimum amount per click may vary of course between search engines, and you may need to pay more to get decent amounts of traffic)
- You only pay for results. As the name suggests pay-per-click means you only pay when a visitor actually clicks on the link to your site.
So how does it work?
Possibly the best known pay-per-click search engine, is Overture. There are many others too - which usually follow somewhat similar principles (often with various twists or changes).
Most pay-per-click search engines work on auction-like bidding principles: - You say ("bid") how much you're prepared to pay for a click-thru from a user who has just performed a search using a particular phrase ("search term").
- You can bid on more than one search term - for example if you sell Handmade Chess Sets, you might bid on terms like "chess set", "buy chess set" and "handmade chess set".
- The more you bid for the current term, the higher up the results you come. Bidding more to come near the top of the results will most likely get far more people clicking on your link.
- Usually the search engine will fill out the results by adding unpaid listings underneath all the listings that people have bid for. This is important because unless users see lots of relevant results, they'll start searching somewhere else - and if the search engine doesn't have traffic, then they won't have any to sell to you.
- Web surfers want to find what they're looking for - and if a search engine doesn't help them with this goal, they'll start searching somewhere else. It is a critical aspect of every pay-per-click search engine's business model, that people do actually use them to perform searches, so they have rules for advertisers: you can only bid on terms that relate ("are relevant") to the content of your site.
- You only pay if the user actually clicks on your link in the results. You don't pay a single cent, unless you get a visitor.
Here's an example of the typical type thing that search results from a pay-per-click search engine:
(a fictonal example!)
In this example: - Listing #1 comes from the highest bidder, who has indicated that he's ready to pay $0.08 per click-thru.
- Listing #2 comes from the 2nd highest bidder, who has indicated that he's ready to pay $0.06 per click-thru.
- Listing #3 comes from the 2nd highest bidder, who has indicated that he's ready to pay $0.05 per click-thru.
- There are only 3 bidders for the search term that we entered, so listings #4, etc., are free listings designed to make the results more usable to web surfers.
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