PPC (Pay-Per-Click) is an Internet advertising method where a business places an ad with a search engine, website or blog. But they only pay a fee for the ad when a prospect clicks on the ad and visits the business’s website. The advertiser typically bids on keyword phrases that are relevant and geographically specific to their prospect audience, making this a highly targeted approach.
Content sites commonly charge a fixed price-per-click, rather than using a bidding system. The most common PPC campaign management system is Google AdWords, which is Google’s flagship advertising product and the main source of their revenue ($16.4 billion in 2007).
Many companies use PPC campaigns as a market research tool to test a large number of keywords for both CTR (click thru rate) to their website as well as conversion rate to sale. In this way they test for and determine the most effective keywords, and only optimize for those top keywords when they launch their SEO campaign.
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