What is pay-per-click advertising?

Pay-per-click advertising (PPC) allows a business to display their advertising within search engine results or on other websites by bidding on one or more search terms and then to only pay for this when a user clicks the advert and visits their website.

Here are some answers to some of the most common questions we are asked about this form of advertising:

How do I control where my adverts appear?

Each pay-per-click provider allows a business to advertise on their network on the specific keywords or phrases that they choose. Most providers also offer a range of matching options

How are adverts positioned?

In most cases an advertiser's position within the search results is determined by how much they are prepared to bid for each clickthrough to their site. Google AdWords and Microsoft adCenter, in addition, consider the relevance of an advertiser's advert text and website when ranking sites, which will also be introduced soon by Yahoo! Search Marketing as well.

How much does it cost?

This will vary depending on how much an advertiser is prepared to pay for each click and the number of clicks they receive. In some markets with high value orders, (such as legal, property or financial services) advertisers will be prepared to invest more than in lower cost markets.

Will it cost me a lot of money if competitors keep clicking on my advert?

Click fraud, which describes any activity that generates visits and spend through your PPC adverts from either competitors or other users who are not likely to be potential customers, is a serious issue that the main PPC providers are keen to combat. It does happen and there is no failsafe method of identifying all 'fraudulent' traffic through your PPC advert, but all the main providers do have software in place to identify repeat usage or unusual behaviour and they will credit spend that results from such activity. However, a certain percentage of irrelevant traffic does have to be built into your spend and it is more important that the overall campaign remains cost-effective.

How do I measure the effectiveness of PPC?

It is possible to use 'conversion' tracking code which registers when an online enquiry form or an online sale has been made as a result of the advertising. This allows the cost per enquiry or sale to be established, and for the most effective keywords to be identified, although it does not measure any offline or email activity that may have been generated, nor the effects of any brand awareness or repeat business that may take place.

What common mistakes do PPC advertisers make?

Despite being simple to set up, making the the most of pay-per-click advertising is a complicated and time consuming process - here are some common mistakes new advertisers make:

• Targeting very general keywords - for a business which a localised or specialised, offering targeting keywords which are too general will lead to paying for a proportion of clicks from visitors who may be unlikely to make a purchase or enquiry.
• Not targeting a wide enough range of keywords - many advertisers target a small range of the most obvious keywords and as a result there is often much less competition for more specific or less obvious terms, resulting in lower costs. These type of keywords are often searched for by users who have refined their search and may be more likely to make a purchase of enquiry
• Bidding more than is cost effective - in some markets there is a great deal of competition to be ranked highly for the most obvious keywords, which can result in a bidding war and advertisers moving past what is cost effective for them.
• Not considering the target website - often a large amount of money is invested in the advertising with little thought given to the process and decisions a user will got through once they reach the site. Making the visitor's journey simple, establishing credibility and providing key information on products or services can all help to convert the visit being paid for into a lead or sale.

At the Web Search Workshop we are experts at creating and running PPC campaigns. Read more about our PPC management service, or contact us for more information. You can also request a FREE website assessment to receive a 'no obligation' review of your website with our proposals on what you could achieve with a successful search engine marketing campaign.