Monday, December 1, 2008

Discovering Pay Per Click Advertising

By Brian Basch

The name pay per click may not make sense at first but once you familiarize yourself with this form of advertising it is easy to understand. In fact the name is actually well suited for this promotion.

Think about it. Search engines cost money to run, especially big ones. There are employees to pay, domains to purchase, and management expenses, just to name a few costs. You will need to retain a work force 24/7 and be constantly vigilant, to beat your competition. Like all businesses it cost money and there is no such thing as a free ride.

In order to offset these costs it is wise to think of ways to earn some extra cash. Time is limited but consider this concept. Substantial profits can be made from those who are already using your search engine. Let advertisers place their ads on those search result pages for a small price. You will make money and the advertiser will get a lot of views to his ad.

One problem arises. You are offering much more exposure than the local newspaper and other conventional medias so you really want to charge a good price for your improved service. Then you suddenly have an ideapay per click advertising.

So reflect on this. The greater the numbers of visitors the more money the advertiser will get. This can be in your favor. Regardless of sales, you will still charge a fee for every click. Added to this you will only charge a small amount of money per click and the advertiser will be happy.

All of the money the advertiser spent on pay per click advertising will be made back in sales. However sometimes searchers can click on the ads with no intention to buy. To prevent huge losses for the advertiser you implement the option to put a cap on the hits or bids so that only X amount of dollars will be spent for each campaign. This will stop the advertiser from losing out if people randomly click ads.

So in a nutshell, this is what pay per click means. It is a wonderful idea and there is a possibility to earn good money. You will cover the costs for your search engine and the marketer will be able to increase their sales.

So now you know about pay per click advertising you can try it for yourself. If you own a sizable search engine it will prove to be a perfect marriage between your search engine and the advertiser. - 16069

About the Author: