Both expert marketers and amateurs understand that when Pay Per Click (PPC) is used correctly, it can be an excellent tool for generating online sales. The problem with PPC is that many marketers are still unsure about what Pay Per Click is, why they should use it for affiliate marketing, and most importantly, how to use it. Unfortunately, using PPC when you’re not really sure why or how can be dangerous to your advertising budget!

What Is Pay Per Click Marketing?

Pay Per Click is an Online Internet advertising method where advertisers pay only when their ad is clicked. PPC ads are  strategically placed on websites and also in Sponsored Search Engine Results based upon what keywords the advertiser bids on and the price the advertiser is willing to pay for good placement. If this sounds complicated, it really isn’t.

When a person searches online for something on the Internet, a “Free Background Check” for example, search engine results (such as on Google) present a target list of websites that are in some way related to that keyword the person searched for.

Maybe the keyword phrase was “How To Make Money Online” Search results are going to bring up every website that is relevant to “making money online”. These results are called organic search results.

SERPs is another good terminology word to know. That stands for Search Engine Results Page(s)

You will also see some other search results, a row at the top of the search page, and vertically on the right side. These search results are actually PPC advertisements that have been placed in these more noticeable spots through Pay Per Click advertising.

The advertiser has paid to have their ad placed in these highly visible spots when someone searches for the keyword “lose weight quick.” These are called sponsored links, sponsored results, or sponsored sites.

Another place that you’ll find PPC advertisements are on websites that allow PPC advertisers to use space (this is called an ad network). These websites are related to the keyword topic and the website owners earns a commission for the use of their space to display the ppc ad network. Here’s an example.

PPC marketing can also be an extremely effective method for promoting your affiliate products, not just your own products, when the advertisements are well thought out and readers are taken directly to your landing page(s) after clicking on your advertisement.

Because Pay Per Click ads are targeted to a distinct market with the use of keywords, the chances of converting to a sale are a lot greater than traditional advertising!

There are two types of PPC advertising. One is flat-rate PPC and the other is bid-based PPC. With flat-rate PPC, the advertiser enters an agreement to pay a flat fee for each click on his or her ads. Rates will differ based on where the ads are placed within a website or network.

Bid-based PPC is where an advertiser will compete with other advertisers using the same keywords for the best positions on websites and in sponsored listings on search engine results pages (SERPs). Bid-based PPC is what marketers are most commonly using.

You now have a pretty good understanding of what PPC is. Now come back soon to read “Why you should use pay per click for affiliate marketing!“