Pay-per-click marketing, also known as PPC marketing, is a type of Internet marketing that is used to bring targeted traffic to a website. The process involves paying Google, Bing or other search engines to place ads in their search results. These ads typically appear at the top of the search results or alongside the regular search results.
The process starts by choosing keywords that are related to your industry. Ideally these keywords will have a strong commercial intent. For instance, if you seo sell widgets, you would want to choose keywords such as "buy widgets" or "shop for widgets online".
You would then enter a maximum price that you are willing to pay each time someone clicks on your ad. Based on your bid and the relevance of your website to the keyword phrases you are bidding on, the search engines will then determine where in the list of advertisements your ad should show up.
Each time someone clicks on your advertisement, you pay the search engines the agreed upon amount of money. One of the benefits of this type of advertising is that you only pay when people actually click on your ad -- not when they view it.
The key to success with PPC marketing is finding keywords where you have to spend less on advertising than you make in profit from any sales that are generated. For instance, if you are paying 10 cents per click and it takes ten clicks on average to make a sale, your advertising cost comes out to about $1.00 per sale. As long as your profit margin is higher than $1.00, you can still come out making a profit even though you are paying for advertising.
It is important to carefully monitor your campaigns and to continually weed out keywords that aren't giving you a good return on your investment. Otherwise, you could wind up losing money on your campaigns.