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A Pay-Per-Click Search Engine (PPCSE) is similar to a standard search engine, but the ranking or order of the search results is determined by how much the advertiser pays the search engine for each time a potential customer clicks on the advertised link shown in the search results.

The advertiser that pays the highest price for a keyword that was searched for shows up first in the search results, the next highest amount shows up second, etc.

Each advertiser manages between one and thousands of keywords that they would like their website(s) associated with. Each keyword needs to be managed individually in order to make sure that the bid (cost per click) remains competitive in order to show up in the top of the results. Most PPCSEs have affiliations with other high-traffic sites that ensure that your listings are seen by large numbers of Internet users all over the world.

You pay only when a user clicks on your listing and connects to your site. You don't pay to list your site; you only pay for click-throughs to your site (some PPCSEs have minimum monthly spending amounts).

You list your website by selecting keywords that refer to your product or service. For each keyword, you determine how much you are willing to spend. The higher you bid, the higher you will appear in the search results.

What is Sponsored Search Engine Placement?

Sponsored search engine placement enables advertisers to compete for search engine results in an auction-style environment. The highest bidder for each specific term will receive the highest listing on the search results page of participating search engines. Advertisers will pay the fee associated with each term only when a targeted lead actually clicks on the link to their website.

Where will my listings appear on the search result page?

The amount bid on each specific term will determine the placement of your listing. The amount required to attain results is determined by your competition. You can choose if you desire the top position or are willing to appear lower in the search engine results. Competitor's changing bids will constantly alter where your results appear.

Understanding Predicting Traffic and Conversions in Pay-Per-Click Advertising.

One of the biggest challenges in pay-per-click advertising is knowing what kind of traffic to expect, and what rank to target for your listings. As you do keyword research, various advertising channels and third party toolset's will provide you with a breakdown of total search volume for relevant key phrases. This search volume generally represents the total number of searches per month for the key phrase, not the number of times your ad will appear and most certainly not the number of visitors you can expect to your site! In addition, you will likely choose not to be in position one for some or all of your listings, impacting your traffic potential even more.

Predicting Clicks
The number of clicks you will receive from keyword searches is based on two primary factors: impressions and click-through-rate (CTR). Impressions indicate the number of times your ad appears, and CTR represents the percentage of clicks you receive versus the number of impressions you receive. Below is a table illustrating aggregated statistics for impressions and CTR by rank. The 4th column, “Per 1000”, shows the number of clicks you can expect per 1000 monthly searches for a given key phrase. Note that your title and description can have considerable impact on your CTR, and CTR varies by industry, but these factors should not diminish the overall trend of a decrease in CTR in accordance with a decrease in rank.

Rank Impressions CTR Per 1000
1 100% 9.3% 93.0
2 90% 4.1% 37.0
3 90% 1.4% 12.6
4 76% 2.0% 15.3
5 65% 1.4% 9.1
6 47% 1.9% 9.0
7 28% 0.9% 2.5
8 21% 0.9% 1.9
9 38% 2.2% 8.3
10 21% 0.9% 1.9

Understanding Predicting Conversions.

Predicting Conversions
One additional factor should be considered as you model the potential of pay-per-click advertising: conversion rate. If conversion rate were consistent across all ranks, it could be disregarded for this analysis, but conversion rate does vary with position. The specific conversion rates indicated here are based on an overall conversion rate of 2%. The “Variance” column indicates variance from the 2% rate. To calculate rates based on a different overall rate, multiply the base rate by the variance. For example, changing the base rate to 3% would result in a 1st rank rate of 3% x 121%, or 3.6%. The 4th column, “Per 1000”, indicates the number of conversions to be expected per 1000 monthly searches. The 4th column is obtained by multiplying the 4th column of the Predicting Clicks chart above by the conversion rate.

Rank Conversion % Variance Per 1000
1 2.42% 121.0% 1.62
2 1.89% 94.3% 0.50
3 1.75% 87.5% 0.16
4 1.78% 89.2% 0.20
5 2.00% 100.0% 0.13
6 2.46% 122.8% 0.16
7 1.83% 91.6% 0.03
8 2.11% 105.5% 0.03
9 2.15% 107.7% 0.13
10 2.06% 102.8% 0.03

What is Paid Placement?

Paid Placement enables you to buy top search engine listings for the keyword searches most relevant to your offerings. Most Paid Placement engines require you to competitively "bid" on each keyword in order to obtain your desired ranking. The primary search channels offering Paid Placement opportunities include search engines such as Overture, Google, FindWhat, Sprinks, Looksmart, and Ask Jeeves, as well as search portals such as MSN, Yahoo, AOL, Netscape, Lycos, Excite, iWon, and About.com.

NeTstrive Paid Placement Management Service is designed to focus your ad dollars on the keyword buys that yield profitable results. We begin by assigning a dedicated team to develop a strategy based on your business model, marketing goals, budgetary parameters, and metrics for success. Utilizing our Keyword Analysis tools, we develop a keyword list based on the search terms and phrases that offer the best combination of relevancy, ranking and pricing for your company. Our creative copy writing team then matches each keyword with customized search result titles and descriptions that attract pre-qualified visitors to specifically targeted landing pages. Leveraging our proprietary Bid Management software, we constantly monitor each listing to maintain optimal rankings and click-through rates at the lowest possible cost. Finally, we diligently track and analyze campaign performance on a per-keyword and per-engine basis, and adjust tactics to increase conversion rates, reduce acquisition costs, and thus ensure the highest ROI.