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What is Pay-Per-Click Advertising?

Pay per click (PPC) is an advertising model used on search engines, advertising networks and content websites/blogs, where advertisers only pay when a user actually clicks on an ad to visit the advertiser's website. Advertisers bid on keywords they predict their target market will use as search terms when they are looking for a product or service. When a user types a keyword query matching the advertiser's keyword list, or views a page with relevant content, the advertiser's ad may be shown. These ads are called a "Sponsored link" or "sponsored ads" and appear next to or above the "natural" or organic results on search engine results pages, or anywhere a webmaster/blogger chooses on a content page.

The growth in the use of  of PPC advertising has been rapid over the past few years and now represents the one sector of advertising - both online and offline - with the highest increases in annual spend.  A simple internet search for a popular brand shows just how many large and small companies are using PPC.  It is almost impossible to conduct a search which produces no sponsored sites and any business serious about web advertising should have a PPC strategy where the use of PPC advertising should form part of the overall business marketing strategy.

How much does it cost?  Depending on the search engine, minimum prices per click start at £0.01 (with no maximum amount).  Very popular search terms can cost much more on popular engines and there is no minimum spending requirement; the amount that you pay for a sponsored word is completely up to you. You can, for instance, set a daily/weekly/monthly budget of five pounds and a maximum cost of ten pence for each click on your ad.  You are charged only if someone clicks your ad, not when your ad is displayed.

Advantages.  Clearly PPC advertising is a focused and highly controllable form of advertising but there are other advantages too.  Taking out a sponsored word campaign with a search engine such as Google means that they will immediately list a new site and it is highly likely that the others will follow.  So for the price of a few pence (rather than hundreds of pounds with a SEO consultancy) you can get an immediate listing for your new website.