While many of the search engines still have free inclusion, this does not always guarantee top placement. Keyword saturation and search engine optimization or the purposeful use of the keywords often within the website content, is also an unpredictable and often unsuccessful method of gaining ranking.

PPC ads are similar to typical ads within Search Engine Ranking Pages (SERP's), but they are above free listings often labeled 'Sponsored Sites.' While some offer image or banner advertising in the same auction manner, most PPC ad services focus on text ads with a website URL and brief description of what the site offers.

Where each ad is placed depends on the keywords and key phrases you select for your ad campaign. Depending on the PPC search engine, this fee may be as low as $.01 going up based on popularity, demand and exactly how much others are willing to pay for high placement.

While advertisers pay only by the actual clicks made, visibility is, in essence, free. However there is an unspoken fee associated with 'unpopular' or rarely clicked ads. Most Pay-Per-Click services balance the ad click-through rate (CTR) or how many times a viewer clicks the ad and the bid amount we're willing to pay for each click when determining the ultimate seniority of each ad. Because CTR does play a significant role in placement, its wise to bid higher at the outset to gain significant clicks. It is also wise to gain as much interest and click through with each ad as possible to establish a stronger and lower priced ranking. Once this seniority is established, the cost may be lowered without harming the position quite as much.

PPC advertising offers instant results, good or bad. Once an ad is placed, it may be online immediately (in the case of Google AdWords) or within a week (in the case of Overture), receiving clicks and being rated immediately. Because of this instant response, unpopular keywords can be disenabled if not attended to fast enough making it next to impossible to use the keyword or phrase again. Also, because Pay-Per-Click advertising is an auction-style marketplace, SERP placement changes constantly.

To meet these needs, many major PPC advertising engines allow budget and automatic bid set-up. This allows you to put a maximum per day or per campaign budget on clicks, after which the ad is taken down until the budget is either replenished or automatically rolled-over to the next period. For instance, an advertiser may place a budget of $100 dollars per day on a campaign. When clicks meets this ceiling, ads stop until the next day to use up the next $100.

When conducting a Pay-Per-Click ad campaign, remember to keep the customer and their motivation in mind, develop a list of keywords that describe the products and services, target keywords the customer will be searching for and use specific phrases that clearly define the offering. Veer away from broad keyword matches, items we don't offer or information that isn't available on the website.

The current PPC marketing has more advertising demand than available, top-ranking spots. It's not yet known how this demand will measure out or how PPC services will address this concern in the future.

Possibly the most important part of developing PPC ad campaigns is finding the right keyword phrases. To begin developing a strong keyword phrase list, type the initial ideas of what people would search for when seeking the website in a new Excel spreadsheet. Look through the site and analyze the words that describe the products or service. Review the website, identifying words that would be of most interest to the viewers. Check web server logs to find the words visitors currently use to find the site and what pages they find most interesting. Consider what action the customer should take - find information, purchase something, bookmark the site for latter shopping or other positive advertising result.

Use the Google Keyword Tool, Overture Keyword Tool or WordTracker.com to find other relevant searches around the initial ideas. Its best practice to use the longest search phrases possible, using those no less than three words long. The more specific, the lower the cost and the more targeted traffic received. If selling specific brands, use the brand names in the keyword phrases.

Customers search during all phases of the shopping cycle - from gathering data to comparing prices and finally submitting their credit card with the store. Use keywords within each phase, considering the highest conversion will come from the audience ready to buy.

Each keyword phrase should be product or service specific. Select the type of keyword searches the ad will show under, such as broad matches, exact matches, negative matches and so forth. For example, a bookshop may want to advertise under the key word phrase 'car books,' but not show up for the search term 'Kelly blue book cars.' They have the option of blocking searches with the term 'Kelly blue book cars' in the phrase.

Keyword selection is important to narrow down the exact target audience and search relevance. Additionally, the ads gain a stronger click-through rate or CTR when carefully targeted to the search traffic. Ads with low CTR may be disenabled. Ads with high CTR will gain higher ranking at a lower bid cost.

When we target exactly what the consumer is looking for, conversion rate increases significantly.

When searching online, potential customers may type many variations of the keywords including misspellings, plural form or switched word orders. So use these in the Pay-Per-Click ads also to gain the strongest and broadest audience range.

Needless to say there are far more aspects to Pay-Per-Click and Keyword Selection than I can cover in this article but the information provided here should give you a good insight into understanding how important it is to have a good understanding of how the whole Pay-Per-Click and keyword selection works.

Don't give up! If at first you don't succeed, try, try, again! There is a lot to learn when starting an online business. Give yourself a break and don't set unrealistic goals. Contrary to popular beliefs, having a successful, profit making, online business doesn't happen overnight.


About the Author:

Shirley Kelly is a full time internet marketer who has written over 200 articles in print and 5 published ebooks. Her passion is helping others avoid the mistakes she made when she launched her first website. Her motto is "Knowledge is power and power is having a good understanding about what you're doing." To download her latest ebook 'The Newbies Guide To Internet Marketing' visit her online at http://www.websitemarketing2.com