Monday, September 1, 2008

Pay Per Click (PPC) Methodology

Pay per click (PPC) advertising allows you to pay to have your ad listed on the major search engines. They are the sponsored links you might see when you perform a search in a search engine. They usually appear at the top, bottom or right side of the search engine results page (SERP) and are identified as Paid Listings, Sponsored Links, Sponsored Listings, or Featured Listings. Pay per click (PPC) search engines call for you to pay to have your advertisement listed on the major search engines by allowing you to bid on keywords that are related to your business.
The rank or relative positioning of PPC campaign ads are based on an open bidding system. In this system, advertisers bid to have their advertisement listed. The bid amount is paid by the advertiser when a visitor clicks on the ad; hence, this is also known as a "cost per click" programme. These terms are sometimes used interchangeably to describe Pay Per Click web advertising even though PPC refers to a payment method and CPC refers to the cost involved in each payment. Theoretically, whoever bids highest gets the highest listed position, although some search engines, such as Google, have made it a little harder by using a
formula that bases position on more factors than just your bid. And as more of your competition enters into this developing market, the competition will only become more fierce. Optimising your PPC campaign will keep you one step ahead of the pack.

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