Pay-per-click (PPC) search marketing is a form of web advertising in which advertisers pay the publisher (the site that displays the ad) when their ad is clicked.

When you view a search result page in Google, Yahoo! Search or Microsoft Live Search, you almost always see two kinds of results: sponsored links and natural search results.  On Google, for instance, sponsored links can be found on the top and right-hand sections of the page, while natural (or organic) search results can be found in the main section of the page.  At the bottom of the page, you’ll typically see that the page is one of many, many pages of results.

Google Search Result Page

Yahoo! Search Result Page

Microsoft Live Search Result Page

The way in which advertisers (you!) get into the sponsored links sections of those pages is through a bidding process.  Each of the three main players – Google, Yahoo! and Microsoft – have their own bid management platform, which are similar but which also have their own unique ways of getting to the same outcome: paid links on relevant search engine results pages.

So: what does “relevant search engine results pages” mean?

Because searches are typically intention-based – that is, someone will enter one or more words into a search box to find something they’re seeking – advertisers want to be sure their ads show up on pages where the searcher’s intention closely matches the advertiser’s product or service.  This is why the term “keyword” is so important to search marketing and PPC campaign management in particular.

Knowing what keywords searchers will likely employ and that most often relate to your company’s products is critical.  Sometimes this is easy. If you sell red Converse sneakers, for instance, it’s a good bet that the keyword “Converse” is a good one for you, but so is “sneakers” and maybe even “red”.   Over time, advertisers become very knowledgeable about what keywords perform best for them in their PPC campaigns and which do not.  As a result, most advertisers treat their keyword lists as “state secrets” and keep them closely guarded.

Very often, a key goal of PPC campaign management is to get as high up as possible on relevant search result pages as possible.  While being the highest bidder is usually the best way to get to the number one position, there are other variables at work.

Wikipedia offers some insight:

Typically the highest bidder for each keyword will be listed at the top of the search engine listings page. However in recent years the quality and relevance of the landing page (the page to which the sponsored result links) have been added to the algorithm to determine placement.

Pay-per-click campaigns have many, many other variables that can be included, but at a high-level these are the basics.  So, in summary, the three things that are most critical to undertaking a PPC advertising campaign are: have a good idea what keywords are best for you; understand your budget and what it typically costs to bid on your keywords; and be sure the place where your link resolves – your landing page or pages – use the keywords you’ve bid on, and are relevant to the searcher’s intention.

Increasingly, businesses and organizations are deriving their primary traffic – and revenues – from clicks on links in search engine results pages.  Which is why more and more business owners are looking for ways to advertise their products and services through search marketing.  For those already engaged in search marketing, many are looking to how it is they can manage the process more effectively and efficiently.  And all businesses are keenly interested in how it is they can get their ads placed as high up as possible on the first page of results.

Small Plug: Yield Software actively manages PPC campaigns for you because it’s a fully automated and powered by advanced algorithms.  For people new to search marketing, our simple, intuitive systems get you up and going in no time, guiding you through each step of the process.  From determining ideal keywords to setting up campaigns, from managing your budgets to optimizing your landing pages, Yield makes it easy to get started.

For people who are more experienced but who seek to save time and get better results, Yield’s fully automated Web Marketing Suite is designed to do all the critical work for you – 24 hours a day, seven days a week, 365 days a year.

For more information about how we can help you with your web marketing efforts, click here.

To see more blog posts in our Introduction to Web Marketing Series, go here.