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Pay per Click (PPC) comprises contextual advertising on search engines like Google, Yahoo, Bing etc and on display networks like Google, Bing to be placed on websites of choice and locations as per bidding. Google has the largest volume of business and traffic in this segment and is the most dominant player in this segment, so we will focus on its PPC solutions.
In the Google Adwords solution, the search engine displays your ad on a page next to search results specifically relevant to your product or service. It charges either when your ad is displayed on users’ screens (Cost per 1000 impressions) or when a prospect actually clicks on your ad and visits the landing page on your site (Cost per click) or when the potential customer performs a targeted action on your website (Cost per acquisition). Though Adwords is generally suitable for those with deeper pockets, global SMEs including some in India have used it very effectively with targeting and budgeting to acquire many high potential leads and customers in a very short period of time. AdWords uses an ad auction to determine which ads to show, the order those ads will appear, and their cost. Your ads are ranked among other advertisers' ad bids based on Ad Rank, which is based on your Max CPC bid and Quality Score. This means that, if your Quality Score is sufficiently better than the score of the advertiser immediately below you, you could rank higher than that advertiser, even if this person's bid is higher than yours. Ad rank is determined is determined by an algorithm that takes into account the maximum bid, quality score and the ad design itself. Keyword research is also an important part of the campaign.
Google Adwords did gain some notoriety by questionable clicking rackets that put a sort of a question mark on the relevance of traffic that was coming via the ads but that is past history now. As the web space sorted itself out, Adwords has carved a prominent niche for itself. Adwords currently offers one of the most effective ways for high quality lead generation with high potential value that is currently in place on the Internet.............
By Vikram Joshi