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Department: Pay-Per Performance Advertising
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Pay-Per Performance
Pay-Per Performance, or Pay-Per Click, is the most effective way to promote your product online because you are only charged after your website receives visitors.
Suppose you sell furniture through your website, and you want to attract a wide audience of people who are actively looking for furniture. You would bid on various keywords that are likely phrases customers would type in search engines to find your merchandise.
People search online by typing in keywords or phrases that are relevant to their interest. If you want to find a great price on a new stereo, or information regarding how they work, you would type a few keywords like "stereo models" or "Sony stereo." If you sell electronics and you bid on those keywords, your website will be the very first thing that surfer would see. This way, you'll know that your visitors are genuinely interested in your product.
On the other hand, you can't target visitors with banner advertisements because banner advertisements only reach a hit or miss audience. If you place a banner on a related website, the user still is not looking for you. Therefore, you pay for nothing. With pay-per click bidding, you only pay what you think is fair to attract leads. Once a user clicks on your website link, a small fee (whatever you bid) is subtracted from your account. You can bid any amount to rank number one, or just enough to secure a top 10 placement. It's that easy!
Fig 1.1 (Example Placement with Keyword "Baseball Cards")
 All other advertising methods rely on the hit or miss strategy. Conventional advertising is basically a shot in the dark - maybe you'll be presented in front of a targeted audience, but only Pay-per performance can guarantee this.
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