Not long ago, Forbes magazine has reported that pay per click ad
sales are expected to increase to at least $8 billion by 2008.

There are three fundamental elements that form the basis of a
successful pay per click ad program and they are constant
monitoring, response analysis, and refinement.

Pay per click search engines offer a way to buy your way to the
top of search results for any term you wish. With proper
management, and a clear focus, pay per click search engines can
offer some of the most well targeted and economical advertising
on the Internet.

Pay per click advertising works through a bidding process, and
the ads appear prominently on the results pages of search engines
such as Google and Yahoo. The highest bidder for a particular
word or phrase receives top placement, and depending on the
engine, the top three to five bidders also generally also receive
placement on the first page of unpaid search results.

Fundamental questions to be addressed when formulating a pay per
click search engine strategy include the following:

When is the top pay per click bid necessary for highest
conversion, and when will bidding for a second or third place
position create a more attractive return on investment (ROI)?

How can you keep your PPC bids from cannibalizing your search
efforts on other (non pay per click) search engines?

What percentage of your pay per click budget should go to each
search engine?

Does either Google Adwords or Overture work better for your
particular product or service? Or, perhaps neither one is
appropriate from a return on investment (ROI) perspective.

It is of critical importance to focus sharply on identifying
the search terms that convert most frequently for your particular
site, eliminating those that don't perform, and most importantly,
calculating and maximizing your return on investment.

The cost structure of pay per click is action-driven and each
time a user clicks your ad, the pay per click engine deducts the
amount of your current bid from your account. Pay per click
offers a high level of assurance that your ad is reaching the
proper target.

Pay per click campaigns, however, are not perfect. Without
CONSTANT monitoring, you sometimes risk incurring advertising
costs that can spiral out of control, focusing on terms that
don't convert well for your product or services, or falling way
down in position during a bidding war.

PPC advertising can be a great help to a site's success, but only
with very close supervision and a thorough knowledge of the
unique characteristics of each PPC search engine.


About the Author
Kirk Bannerman operates a successful home based business and
coaches others seeking to start their own home based business. Visit his website at
Legitimate Home Based Business for more details.