PPC = Pay Per Click
Where did it come from - Pay per click was invented by
www.Overture.com formerly know as
www.GoTo.com. Overture invented the technology and owns the trademark rights to Pay Per Performance.
How does it work - Advertisers (businesses) people with websites who want to promote themselves in a search engine setting submit what I call "keyword listings". These keyword listings are determined by the content of your site.
If you have a website about "flat screen tvs" - you would determine what is the most relevant keywords that would target the types of "consumers" interest.
Most PPC sites have what is called keyword research tools. You type in a keyword that is relevant to your site, and you are provided with a list of keyword phrases that go along with your site.
In our example this would be "flat screen tv"
Below is a list of how many searches and clicks were generated using relevant keyword phrases that go with "flat screen tv"
24062 flat screen tv
1089 lcd flat screen tv
735 sony flat screen tv
625 27 flat screen tv
565 32 flat screen tv
467 flat screen plasma tv
340 flat screen tv review
315 20 flat screen tv
272 cheap flat screen tv
263 flat screen tv stands
253 free flat screen tv
240 panasonic flat screen tv
235 wall mount flat screen tv
207 sharp flat screen tv
206 best flat screen tv
200 27 inch flat screen tv
196 32 inch flat screen tv
189 phillips flat screen tv
180 36 flat screen tv
169 flat screen hd tv
169 philips flat screen tv
161 42 flat screen tv
The number to the left is how many times the keyword was searched for in the last 30 days. Some keyword tools also give you how many clicks were performed in the last 30 days.
The more value your keywords have the higher the bids are going to be. For example using the flat scree tv example above - try and think about how many people would actually by one online. Not very many because of shipping cost and freight damage poetential. However they are very expensive so advertisers will be willing to pay more for these keywords.
Also if you have 1000 advertisers bidding on the same keyword your bids will go up alot.
Now to explain what bids are - let's say you decide that you want people to see your site every time they search the PPC search engine for the keyword "flat screen tv"
Well the advertiser you are competing with is paying .32 cents a click every time someone clicks on his listing to have the very first listing of the 234 listings for the keyword "flat screen tv" (did you follow that, sorry I am getting a little tired)
So you want to list above him and be the first listing when your keyword is searched for, well you will have to pay .33 every time someone clicks on your listing to knock him down to #2 and etc.
Now - the post above talks about click fraud - what is click fraud? Click fraud comes in many forms
Click Bots - Programs that generate false clicks that are not by real people
Click Redirection - Websites that use a redirect feature to direct a web surfer to go directly to a listing that they choose (they look for high bid keywords)
Pay people to click for no reason other than to be paid per click
There are many forms of click fruad schemes - however as the problem grows more and more PPC search engines are learning how to fight against this style of cheating click fraud.
Now you might ask, well why would well known PPC search engines use click fruad? THe answer is they don't. PPC Search Engines use what they call a partner network, they sign up affiliates to use the PPC search engine on the affilaites web site. IF you are monitoring 100 sites, you could keep close tabs on this and prevent almost 100% of click fraud from happeing, however sites like Overture hve grown to over 80,000 affiliates, and that is alot for one company to monitor. Although like I said there are many new features that PPC Search engines are using to prevent these forms of click fraud. (We use all the best features on our site to prevent click fraud)
Now comes in ROI I am not going to go into detail on what this means but it stands for return on investment - is what you have to look at when you use ppc search engines If you spend $500 in advertising are you making your money back and then some.
Try and absorb this information and pm me if you have any other questions.
I will get off my soap box now.
Drew