Pay-per-click PPC is one of those

Pay-per-click (PPC) is one of those new internet "buzz" words that you keep hearing about but most people do not understand. Simply, it's the advertising model [http://www.rapidpi.net/ http://www.rapidpi.net apidpi ] used on the internet. This post will give a brief, but concise reason of how Pay per click works.

In Feb 1998 Jeffrey Brewer presented a "proof-of-concept" to the TED conference in California, however the credit for the PPC model is generally given to Bill Gross, founder of Goto. com.

Google started search engine advertising in December, 1999, and even came on-line with its AdWords system in October of 2000. PPC was introduced in 2002, in addition to until then advertisers paid on a cost-per-thousand impressions model.

Every time the "ad" is shown in a webpage, this is called an Impression. Back in the "old days" the search engines would charge you on the a cost-per-thousand impressions basis, which means you paid a flat rate for each 1, 000 times your ad was shown on any page. In the PPC model, your opinions are

you only pay when a person clicks on your ad.

Websites that will subscribe to PPC advertising ads will display typically the ad when a keyword (the words and phrases or words the user types into the search engine), matches an advertiser's keyword list. (There is also browse the "content network. " This is beyond the scope of this article and you will be address in a later article)

You, the network marketer, enter into a "deal" with each search engine company along with other Internet publishers. You agree on a price that you will pay for each click on. This is called the Cost per click (CPC). This kind of cost is associated with the keywords the users kind into the search engines to find their search information.

Sounds simple doesn't this? But of course there's catch. While many PAY PER CLICK providers' exist, (Google AdWords, Bing! Search Marketing, and Microsoft adCenter would be the three largest), they all operate under a bid-based model. This means those that pay the

get the

on the first site, and everyone follows in order of their wager.

The term conversion rate is the key to success. If you are paying $1. 25 for every click and every 100 ticks produces 1 customer, then your acquisition cost per customer is $125. 00. That's great if you are generating $5, 000 on every customer, but you'll be out of business if you make fifty dollars on every customer.

Setting up a PPC advertising campaign seems very simple. Those that can make this specific campaign work, without paying a fortune for every customers refer to it as an art.

Within my professional opinion, those that venture into this advertising forum need to have assistance simply by people who have a vast knowledge and comprehension of PPC. Without this specialty teaching, you could open the door to monetary disaster.