PPC search engine marketing is a billion dollar industry today and will continue to grow in the coming years. In PPC advertising, an advertiser pays when his/her ad is clicked leading the user to advertiser’s website which shows detailed information about various products and services. If an advertiser can transform a visitor to a customer, then PPC campaign will surely bring profits to him. Here are the following factors that affect a pay per click cost:
i. Cost on Search Engine advertising:
In this case you will pay to the search engines who will display your ad in the foremost place. This place is bought by you in bidding. Select a keyword for which you want to get listed. As soon as user clicks on your ad, you will be charged with the amount that you bid with. Search engine advertisings will gather you high traffic in no time. Once the user is in your area (in your website), it is your responsibility to convince him to take an action. This action may not a purchase of any product, but can include filling up a form.
ii. PPC Ad Campaign:
A PPC ad allows your product or services to be showcased to potential customers all over the web. It will include a headline, description of your business and a link to your site. A good PPC ad campaign can work wonders for you. You can entrust a web marketing company for this purpose. Web marketing company will definitely charge you for offering their services.
iii. Price for Keywords:
In case of search engines, advertising systems work much like an auction. Bids are placed for the search terms that you want to appear for. Your ad will then be displayed depending on your bids. Higher your bid as compared to others (who have same key terms) higher your rank will be. The cost of keywords and key phrases are increasingly rising. Therefore, proper money management is required in this case.
iv. Contextual Ads:
Content match PPC advertising is also an important point to consider. Ads are displayed on the content related sites. These sites earn small revenue from each click. A portion of the revenue earned is taken by the search engines and a portion is taken by the site displaying your ad.
These are the costs which are needed to be determined in PPC ads. But the exact process of determining the cost per click of ads is very complex and is discussed in the later part of this guide.
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