Pay per click refers to the form of search engine marketing that allows company websites advertised in the right hand side and top of search engine results for selected keyword searches. These appear as ‘Sponsored Listings' within the major search engines like Google and Yahoo. Pay per click (PPC), also called cost per click, is an internet advertising model used to direct traffic to websites, in which advertisers pay the publisher (typically a website owner) when the ad is clicked. It is defined simply as the amount spent to get an advertisement clicked.
A keyword-targeted ad is ranked on a search engine result page (SERP) based on the matched keyword's maximum cost-per-click (CPC) bid and Quality Score. The CPC is determined by the cost of individual keywords, which exist as part of a larger bidding system.
With search engines, advertisers typically bid on keyword phrases relevant to their target market. Content sites commonly charge a fixed price per click rather than use a bidding system. PPC "display" advertisements, also known as "banner" ads, are shown on web sites or search engine results with related content that have agreed to show ads.
With the right selection of keywords, a pay per click advertising campaign can be a very cost effective form of online marketing. Each keyword can be individually evaluated, allowing careful monitoring of the campaign and ensuring only the most valuable keywords are retained.
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