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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" program. 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. Optimizing your PPC campaign will keep you one step ahead of the pack
Keyword PPCs
Advertisers using these bid on "keywords", which can be words or phrases, and can include product model numbers. When a user searches for a particular word or phrase, the list of advertiser links appears in order of bidding. Keywords, also referred to as search terms, are the very heart of Pay per Click advertising. The terms are guarded as highly valuable trade secrets by the advertisers, and many firms offer software or services to help advertisers develop these invaluable words.
An industry of professional services firms that can assist advertisers in marketing their products and services on search engines has also developed. Many of these firms will be members of various trade bodies while other reputable firms have chosen to avoid these bodies, as many of them remain heavily biased toward the firms that first got together and founded them.
Product PPCs
"Product" engines let advertisers provide "feeds" of their product databases and when users search for a product, the links to the different advertisers for that particular product appear, giving more prominence to advertisers who pay more, but letting the user sort by price to see the lowest priced product and then click on it to buy. These engines are also called Product comparison engines or Price comparison engines.
Service PPCs
"Service" engines let advertisers provide feeds of their service databases and when users search for a service offering links to advertisers for that particular service appear, giving prominence to advertisers who pay more, but letting users sort their results by price or other methods. Some Product PPCs have expanded into the service space while other service engines operate in specific verticals.
Pay per Call
Similar to pay per click, pay per call is a business model for ad listings in search engines and directories that allow publishers to charge local advertisers on a per-call basis for each lead (call) they generate. The term "pay per call" is sometimes confused with "click to call" [1] . Click-to-call, along with call tracking, is a technology that enables the "pay-per-call" business model.
Pay-per-call is not just restricted to local advertisers. Many of the pay-per-call search engines allows advertisers with a national presence to create ads with local telephone numbers.
According to the Kelsey Group, the pay-per-phone-call market is expected to reach US$3.7 billion by 2010.
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