Pay per click advertising is the industry term used to describe keyword based advertising. The two pay per click advertising programs available in Australia are Google Adwords and Yahoo Search Marketing.

The Google Adwords pay per click advertising program enables you to publish your ads on keywords searched for on the global Google search network, plus advertise on websites which publish Google advertisements as part of the Google Adsense program.

The Yahoo search marketing pay per click program enables advertising on keyword searchers in both the Yahoo7.com.au and NineMSN search network.
How does pay per click advertising work?

Pay per click advertising is quite a straight forward concept as you simply bid the amount you would like to pay for a click from each keyword. The cost per click of each keyword will vary based on the levels of competition per keyword. For example, a highly competitive area such as “property investment” may have a cost per click of $10 whilst the cost per click of a key phrase such as “ byron bay painter” may be as low as 10 cents per click.

Many people are shocked and feel that any click costing more than $2 is too expensive compared to other forms of marketing. This is more a gut reaction rather than a valid opinion as even at $2 pay per click, advertising represents outstanding value for money.

For example if you placed an advertisement in a magazine for $2000 and you received 1000 people responding to your advertisement I am sure you would be ecstatic with the response.
5 top tips for effective pay per click advertising:
Set up online sales measurement and campaign performance goals so you can quickly know if your campaign is profitable or not. Pay per click advertising will boost the amount of traffic to your website immediately, however, if not managed properly it can become expensive with few returns.
Set daily campaign budgets – By setting a daily budget your pay per click advertisements will only display until your budget runs out. The next day your advertisements will appear again. This enables you to tightly control your pay per click spending.
Click through rate – Your average click through rate is the quality score of your pay per click advertising program. If your campaign achieves a high quality score you can be paying less and be listed higher than your competition.
Target Market – Be very specific and targeted in your approach to pay per click advertising. Broad based advertisements can generate large amounts of traffic but will provide a low website conversion rate.
Test Different Scenarios – Pay per click marketing is very dynamic form of advertising which enables you to easily test different offers and campaign configurations which can be easily measured. This provides you the ability to constantly try new things and test which scenario provides your business the best return.

If you would like specialist expertise to review your current pay per click advertising program the team at ROI.com.au is well placed to help your business save money and achieve better returns.