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:: The Ultimate Pay Per Click Resource |
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 What is Pay Per Click Advertising? (Part II)The Evolution of Pay Per Click Advertising Pay per click (PPC) advertising evolved over the past five years into a combination of old and new. Many of the basics concepts of PPC advertising remain the same. However, new concepts now join with some old ones to create an entirely new product. In addition, the art of pay per click marketing itself changed, as advertisers had to alter their approach as a whole. Not too long ago, almost all pay per click search engines (PPCSE's) had one single, fundamental commonality: The highest bidder achieved the highest ranking in the search results. Often times, the advertiser bidding the highest cost per click (CPC) would obtain the top spot within the search results. It is important to note that some PPCSE's still function in this manner. However, most PPCSE's function differently in this day and age. Today, most pay per click search engines now utilize a combination of factors to determine the ranking of ads within their search results. Bid price is only one factor in the equation, so bidding the highest dollar amount does not necessarily ensure a top ranking any longer. Note: The following is series of basic generalizations. Keep in mind that each pay per click search engine is different and that each PPCSE uses unique criteria to determine the ranking of search results. Factors that determine placement in a PPCSE: - Bid Price: A higher bid price for a keyword (or group of keywords) generally translates into a higher ranking(s) for that keyword(s). - Click-through rate (CTR): A higher CTR for a specific ad generally translates into a higher ranking for that ad. - Historical data: In some circumstances, search engines like older ads more than newer ones. - Competition: The more saturated an area of interest, the harder it is for one advertiser to achieve high rankings in that area.  At first (and second) glance, bidding seems like the most basic of concepts. But the evolution of pay per click brought changes in bidding along with everything else. Gone are the days of setting one bid price for 900 keywords and forgetting about it. Now, advertisers can not only bid separate amounts on each keyword, but they can assign more than one bid on each keyword, depending on where the ad for that keyword will be shown. For example, with a specific search engine, an advertiser can assign a bid of $1.00 for "Keyword A" when an ad for that keyword is shown on the search network of that PPCSE, but then assign a bid of $0.50 for that same "Keyword A" when an ad for that keyword is shown on the content network of that PPCSE. In addition, advertisers on some PPCSE's can now assign different bid amounts for different times of the day. If an advertiser knows that more sales for his product typically occur during 1 pm and 3 pm on weekdays, he may be able to assign a higher bid price for that time period Monday through Friday. Advertisers must take the time to fully understand all of the bidding tools available to them in the account management of each PPCSE that they run ad campaigns. Understanding and utilizing these tools can definitely result in a higher return on investment (ROI). Click-through rate (CTR) Relevance, relevance, relevance. If a lot more searchers are clicking on "Ad A" over competing ads, then "Ad A" must be more relevant, right? Obtaining a high CTR is probably the single most important part of any pay per click marketing campaign. That said, writing fresh, unique and concise ad copy is probably the single most important task a pay per click marketer can spend time on. Follow these simple rules for great ad copy: - Know the product you are marketing. - Test multiple ads. A small change in ad copy can make a big difference. - Be current. Stale ad copy is worthless. - Be unique. Say it in a new way. - Don't copy ad copy. Write your own ads. Historical data Yes, older ads can occasionally have an easier time achieving higher rankings in search results. But no, it is never too late to start competing against older ads. Just be aware that it may take some time and patience to compete fully with older advertisers. History can be no factor at all in many instances. Competition Know the competition. Be aware of what they are doing and what they are not doing. But it is important to repeat the above tip: Don't copy ad copy. Be unique. Be original. Who wants to read the same thing 10 times? Pay per click advertising is still evolving. Do your best to stay informed of the latest updates and changes to the industry as a whole. Change is inevitable – just be ready to adapt quickly.
· About Pay Per Click Advertising, Part I
· The Top Five Pay Per Click Search Engines 
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