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How Pay-Per-Click Advertising Works And Why It Can Be Costly For Popular Keywords

By jdmunoz On January 15, 2010 Under Traffic Tactics

How Pay-Per-Click Advertising Works And Why It Can Be Costly For Popular Keywords

There are many advertising methods, both free and paid, that can bring in a great deal of targeted traffic to your website.  One of the most effective paid advertising methods is Pay-Per-Click (PPC) ads.

Pay-Per-Click ads are listings on search engines that require you to pay for a high ranking for specific keywords.  When a user clicks on the ad, you pay for the cost per click (CPC).  In return, it is usually a highly-targeted visitor who is visiting your website, and with the proper follow-up, should become a subscriber, and eventually, a customer of yours.

These listings are also known as “sponsored ads” or “sponsored links” and will usually appear above or to the side of those natural listings that occur because of how they naturally rank in the search engines for those specific keywords.  This is why you need to pay for each user that clicks on your link – your site will show up on that first page regardless of how it would naturally rank in the search engines for those keywords.

It’s important to note that the more popular the keyword, the higher the cost-per-click you’ll likely have to pay for each visitor who clicks on your link.  This is because many marketers want that high placement, so there is a great demand for that placement, and because of economics, the higher the demand and the lower the supply, the higher the price will be to take advantage of PPC ads.

For more information on getting targeted traffic to your website, check out “Traffic Tactics.”

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