
August 19th, 2005, 09:04 AM
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SEO Apprentice
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Join Date: Dec 2004
Posts: 208
  
Time spent in forums: 5 Days 10 h 34 m 22 sec
Reputation Power: 6
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Pay-Per-Click (PPC) is a method of Search Engine Marketing (SEM).
Some search engines offer PPC advertising programs that allow you to bid for position on a keyword phrase. The only time that you pay the search engine is if someone actually clicks on your listing in the search results of that engine or one of its partners receiving the listing feed. Thus it is called "pay per click." If your listing is clicked on then your account with the PPC search engine will be debited by that amount.
At the instant that the keyword is searched for the search engine will rank the listings starting with the highest bidder and on down. These bids can change at any time.
Most PPC search engines position their paid listings based solely on the amount that is bid for that keyword. Overture.com is currently the largest of these straight forward engines.
Google is another search engine that offers PPC, but their positioning system is different. They incorporate a Click Through Rate (CTR), your maximum bid and a few other items into a formula that determines your position. The CTR is simply the percentage of clicks that you receive out of the total impressions that your listing gets.
The PPC search engines feed the top results to their partners. For example if you search on Yahoo! you will see two or three listings at the top in a light green box labeled "Sponsor Results." They also display more PPC listings in a column on the right and a few at the bottom of the page. Yahoo!'s results are fed by Overture.
Overture's PPC program is now called "Yahoo! Search Marketing." Google's program is called "AdWords."
I hope that this helps.
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