Credits go to: Stove Popper. The concept of Pay-Per-Click or PPC advertising defines a marketing promotion model that is in wide use with search engines and advertising networks. Advertisers pay the site that displays their ads only when one of these gets clicked on, which in fact explains the name of the concept as such. All business owners promoting products or services online have certain keywords or key-phrases that they expect visitors to type in the search box. Another name for such forms of advertising is sponsored links or sponsored ads, and they are nearly everywhere on search engine result pages.

The largest network operators providing the PPC advertising background are Yahoo!Search Marketing, Google Adwords and Microsoft adCenter.

The prices practiced by these service providers are similar in terms of packages, but high variations appear because of the level of demand for keywords. The creation of PPC advertising campaigns can be conducted in several ways, and while some web developers work independently, others hire professionals. Thus, there are two types of campaigns with their specific categories: content match and sponsored match.

Thus PPC advertising focused on content match develops campaigns that use the business web site or other pages together with newsletters and e-mails to target more relevant visitors and thus generate profit.

The sponsored match model however involves only the ad display on the result pages in search engines. Thus, the advertiser makes profit when the click on the ads results in a transaction, while the displayer, whether search engine or website makes profit with every click on the ads regardless of profitability or relevancy to the advertiser.

The issue with PPC advertising is that it represents a model that has often been subject to click fraud. Dishonest people sometimes click on ads on purpose with the intention of making one lose money. The other situation is when the websiter advertising online orders the clicks on the ads to generate more money. Most search engines have taken all sorts of measures against such abuses, and the main safety program consisted in the implementation of automated systems capable to detect fraudulent clicking. Yet, the system is not 100% safe and breaches do exist.

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Written by: Stove Popper.

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