What makes PPC advertising so effective? There are a number of factors, but primary among them is the ability to focus on a highly targeted audience, and, the ability to track the effectiveness of the advertising.
In a print medium, either a newspaper or periodical, a business will pay a flat rate for the advertisment it opts to purchase. In most cases they can only request where the advertisement will appear, unless they wish to pay a premium price to guarantee a more prominent spot. But with traditional print advertising, there are few ways to gauge how many people even saw the advertisement, must less took action upon seeing it. The advertiser will pay the same rate whether or not the ad is effective.
In electronic advertising, either on television or radio, a company will pay to have their advertisement aired. Television advertising costs more than radio advertising, as a rule.
Larger radio stations can charge more than smaller stations because of the size of their leadership. Advertisers may try to match their advertisements to the station’s format (talk, country, Top 40, etc.), but must then consider other factors, such as when the advertisement is aired, producing their advertisement, etc. But, just like print advertising, the advertiser will pay regardless of whether the ad was an effective tool.
None of those factors matter in pay per click advertising. The company only pays for the advertisement if their ad is clicked and viewed by the interested party. The advertiser will pay a cost per click amount, a rate that will either be a fixed rate or a rate that is established by bidding for keywords and keyword phrases that are commonly used and relevant to the target market.
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In the next article, we will discuss how PPC allows you to track the true effectiveness of your advertising efforts!