PPC is a technique used by website owners in order to determine a way that they can charge their advertisers when internet users go to their websites by clicking on to advertisement banners on their websites.  The search engine and website owner are not involved in determining how much they are going to charge the advertiser, rather, he makes that decision himself. Google has recorded AdWords as its highest source of revenue and it is used in implementing the PPC technique. It allows banner ads and text advertising to a targeted audience using the pay per click technique. Since all that Google requires of people is the internet and creativity, this technique is now being used in many different parts of the world.

For AdWords, advertisers use two main ways to determine how much they should pay for their advertisements. It can either be based on bids or a flat rate. In either, the advertiser considers factors such as the traffic generated to that site and just how much of that traffic might click on their advertisement. It is easy to know this by looking at the audience that one is targeting. It is important for the advertiser and the website owner to share the same target audience as this will improve the chances of visitors clicking on the adverts. Advertisers also consider how many of those visitors might actually buy their product. Once again, if the target of the website is the same as that of the advertisers, there are higher chances of the visitors actually buying the product being advertised.  Advertisers can determine the type of audience by the search terms internet users input in the query box or based on the context of the pages they are viewing.

Advertisements that use AdWords are put on Google search engines and also other partnering networks. Google determines which adverts should be placed on search results pages based on the results that have been yielded. This means that the adverts are tailored to specifically fit into the needs of the internet user putting into consideration where they are located and what time it is there. According to Google and other search engines, people who log in very late in the night and search for items that are not work related are more likely to generate traffic for a site although they may not necessarily translate the traffic into sales.  Alternatively, sales conversions are very common with people who log in to the internet late at night specifically looking for a particular product.

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Filed under: AdwordsPPC (Pay Per Click)

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