Search engine optimization can take a long time to show results. The Google sandbox alone can delay optimization results by 6 to 8 months. So, what can you do to get traffic while you wait? Pay-per-click [“PPC”] campaigns fill the time gap. This article discusses the basics of PPC advertising.

What Is A PPC?

A PPC search engine allows you to bid for placement in search results. Search engines such as Google, Yahoo, MSN, AOL and most others bolster their organic search results with sponsor advertisements. If you search on Google, links in blue across the top and the little ads down the right side of the search results are PPC listings. In one form or another, similar listings appear on every major search engine.

How Does It Work?

When you use a PPC, you will bid for placement in the search results under particular keywords. Instead of optimizing your site to appear high in the listings, you simple pay for the position. While this may sound great, keep in mind you are paying for the listing and have to watch the return on investment closely.

To get started, you must open an account with the PPC in question. The two biggest PPCs are Google Adwords and Overture. You will need to register with the PPC, provide a credit card number and, depending on the PPC, deposit money into the account. Next, create ads with a title, body text and link to the landing page of your site. The title of each ad should correspond to a particular keyword you want to promote. If at all possible, include the keyword in the actual title. Finally, you will be asked to bid on placement in the search results.

Bidding for placement is not as simple as it my sound. Ideally, your ad should be in the top 3, but never below the 10th position. This has to be balanced, however, by the return on investment of the campaign. If you sell a product that produces a $10 dollar profit per sale, you probably can’t afford to pay $.90 per click. If your site converts 1 visitor out of every 100 into a sale, you will spend $90 for every sale. Obviously, that is going to work out very well. The one caveat to this situation is a business with reoccurring revenue.

If you site charges clients a reoccurring monthly fee, you can bid in excess of your immediate profit margin. To do this safely, you must determine how long the average customer will stay on your site. For example, if you make a $10 profit per month and the average customer pays for 5 months, the total profit is $50. In this situation, you can spend $20 or $30 to obtain a customer and still turn a profit. To properly manage a PPC campaign for a reoccurring charge site, you must recalculate the profit per customer ever week to protect yourself.

PPC Cons

Why not just use a PPC campaign instead of pursuing search engine optimization? There are a number of reasons. First, you are paying for each click with a PPC, which requires a budget and may impact your cash flow. Second, PPC bidding is competitive and that translates into higher costs, so much so that a profit may be hard to make. Third, many people simply do not click on PPC ads with the figure being as high as 20 percent. Fourth, you run the risk of having people click on your ads with no intention of buying, whether they are just browsing or are trying to exhaust your advertising budget.

PPCs definitely have a place in the online marketing field. Manage your campaigns with an eye for detail and you should fine.

As great as Google is, it has a bad habit of naming things in a bizarre fashion. For instance, what is the difference between Adsense and Adwords?

Difference Between Adsense and Adwords

There are more than a few twisted minds at Google. You need look no farther than the name “Google” to understand this truth. What is a “Google”? It is a play on the name “googol”, which is a name for a mathematical figure of the number one followed by 100 zeros. Strange indeed, eh?

Google Adsense and Adwords carry on this tradition. You neither “add sense” nor “ad words” when you use these two Google services. Instead, the best way to think of them is to consider a middle man in any transaction. In this case, Google is the middle man and profitably so.

Google Adwords is a program you can use to get listed in the search results for Google and other search engines, such as AOL, for which it supplies advertisements. You essentially create an account, insert your advertisement, pick the maximum amount you are willing to pay per click on your ad and then submit your credit card. You advertisement will then go live once the credit card is approved. Every time someone clicks on your ad, Google bills your account. Every couple of weeks or when your bill reaches a certain amount, Google will actually charge your credit card. Adwords is known as a form of pay-per-click advertising.

Google Adsense is essentially the other side of the coin. There are non-search engine sites on the web that get a lot of traffic and Google trusts. This site is one, but it is hardly an exclusive club. With Google Adsense, these sites are able to set up accounts with Google and list advertisements from Google Adwords on the sites.

A perfect example of this are the ads in the right hand column of this page. We are listing these ads through the Google Adsense program. Each advertisement is actually a Google Adword listing. When someone clicks on one of the ads on our site, we get a percentage of the bid price Google is charging that advertiser. What is the percentage amount? Nobody knows because Google will not reveal the information! Still, it is enough that it pays some of the overhead of hosting and such. Some people build sites solely to promote Adsense ads. It just depends on your particular level of interest.

What is the difference between Adsense and Adwords? You pay Google for to place Adwords on Google’s system, but Google pays you to put Adsense on your site.

When people hear about online marketing, they often think of two of the more popular methods that a company can use to enhance its visibility on the Web: organic search engine optimization and pay-per-click advertising.

In an ideal world, you would use both strategically to maximize your site’s profile. However, budgetary constraints often make this impossible, and trying to do both on a limited budget or with minimal resources can result in neither campaign producing ideal results. In this case, it’s usually better to focus on one or the other. But which is best for you?

Organic Search Engine Optimization

Organic search engine optimization campaigns offer several distinct advantages over pay-per-click advertising campaigns, as many recent studies have shown. What follows is a brief listing of some of the findings.

Propensity to Click

Study after study indicates people are less likely to click on paid search ads rather than on results from organic search engine optimization. For example, one study found that search users are up to six times more likely to click on the first few organic results than they are to choose any of the paid results[1], while an eye tracking study[2] showed that 50 percent of users begin their search by scanning the top organic results. Other studies have shown that only 30 percent of search engine users click on paid listings, leaving an overwhelming 70 percent who are clicking the organic listings.[3] And a 2003 study found that 85 percent of searchers report clicking on paid links in less than 40 percent of all of their searches, and 78 percent of all respondents claim that they found the information they we searching for through sponsored links just 40 percent of the time.[4]

Trust

Studies are beginning to indicate that the trust level for organic results is much higher than that of paid results, and that paid results are looked upon as a nuisance by some searchers. One study found that only 14 percent of searchers trust paid listings, and 29 percent report being “annoyed” by them.[5] Another study found that 66 percent of customers distrust paid ads.[6] Clearly, it’s not generally a good idea to upset potential customers before they even click on your link.

Value of Visitors

Organic search engine results tend to be seen as non-biased, and they therefore are able to provide visitors that are more valuable. The overall conversion rate, or the rate at which searchers take a desired action on a site, is 17 percent higher for unpaid search results than the rate for paid (4.2% vs. 3.6%).[7] Trends also have shown that more of the sales that result from search engines originated in organic search listings.[8]

Visitors Becoming More Aware of Pay-Per-Click as Advertising

As more and more people turn to the Internet for research and information, more searchers are becoming aware of paid results as a marketing tool. One study showed that not only are 38 percent of searchers aware of the distinction between paid and unpaid results, 54 percent are aware of the distinction on Google, which is widely recognized as the most popular search engine.[9]

Pay-Per-Click Costs Rising

Meanwhile, pay-per-click costs are rising steadily. Between October 2004 and December 2005, average keyword prices rose from around $25 to just under $55.[10] And the cost of keywords can increase by as much as 100 percent during the holiday season.[11] These costs aren’t going unnoticed either; one study of problems experienced by U.S. companies found that 57 percent of respondents felt that their desired keywords were “too expensive,” while 51 percent expressed concern that they are overpaying for certain keywords.[12] On the other hand, when you outsource to an organic search engine optimization firm, your costs will likely remain more stable than the prices for pay-per-click advertising.

Long Term Results

While a pay-per-click campaign may produce results more quickly than an organic search engine optimization campaign, organic search engine optimization campaigns can give you results that last. When the budget runs out for a pay-per-click campaign, or when your company decides that the pay-per-click campaign should be terminated, the results end as well. With organic search engine optimization, the optimized site content and other changes made to your site can have an impact on your search results until the next change in a search engine’s algorithm, or possibly even beyond.

Relevance

Users also have rated organic search engine results as more relevant than paid results. On Google, 72.3 percent felt that organic results were more relevant, while only 27.7 percent rated paid results as more relevant. Yahoo offered similar results, with 60.8 calling organic results relevant compared to only 39.2 percent for paid.[13]

Pay-Per-Click

While the above statistics may make organic search engine optimization seem the clear choice in all cases, in certain situations it actually can make more sense to do pay-per-click advertising. For those looking for fast results on a small budget, a pay-per-click campaign may be the answer.

Results

As previously stated, the results from pay-per-click advertising are immediate. On the other hand, an organic search engine optimization campaign may take up to three months or more for results to be apparent. In this case, pay-per-click is advantageous for those who are looking to promote an initiative that will go live in a short amount of time, or whose business is seasonal in nature and who only do promotion during certain months of the year.

Budget

Small businesses with extremely tight budgets may find that pay-per-click is a better investment than organic search engine optimization because a pay-per-click campaign will almost always cost less – good search engine optimization companies simply do not work for $100 per month. By limiting a campaign’s keyphrases to highly specific terms relevant to a company’s business, there will not be a large amount of traffic generated, but the traffic that is generated will be specific to the desired result. Plus, choosing such specific phrases can make them less expensive on a per click basis. Moreover, in niche markets with a high average dollar sale, where there’s not a great amount of search activity because the prospect pool is limited, it may not make sense to engage a quality organic search engine optimization firm at several thousand dollars per month when you can instead buy varying niche-specific keyphrases and generate traffic in that way.

Easier to Handle In-House

Non-complicated pay-per-click campaigns can be handled much more easily in-house than an organic search engine optimization campaign. Such campaigns generally involve business to business and high-end, service oriented companies, not those geared toward a large consumer base. Since organic search engine optimization requires a steep learning curve and since there are so many questionable tactics that can put a site at risk of penalization (the tactics that neophytes to search engine optimization are likely to use), it may make more sense to run a pay-per-click campaign. Since you are dealing directly with the engine, i.e., Yahoo Search Marketing and Google AdWords, you don’t need to pay a middleman, and these sites offer helpful tutorials on how to use pay-per-click marketing. Perhaps most importantly, the concept of pay-per-click is much easier to grasp and understand at the outset.

No Contracts

Most organic search engine optimization campaigns require a contract of a certain length because SEO companies know that meaningful results will rarely happen overnight. When dealing with an in-house pay-per-click campaign, obviously a contract is not an issue. But in general, even when you are dealing with an agency, you will not tend to need to sign a contract because the agency instead makes money on a percentage of the spend, although there may be a setup fee. Without a contract, you are free to reallocate marketing dollars elsewhere if you discover that the pay-per-click campaign is not providing the desired results.

Conclusion

Clearly, organic search engine optimization has some distinct advantages over pay-per-click advertising. However, there are undoubtedly certain situations and scenarios where pay-per-click advertising makes more sense fiscally and strategically. With a high enough budget, you would be able to have an effective organic search engine optimization campaign running in tandem with an effective pay-per-click campaign. But if you have to choose one, look into your unique situation before you decide.