Pay Per Click

Very different than search engine optimization, paid search engine marketing
comes down to four popular groups. Of theses groups the open bid position
system is used probably more than 90% of the time, so it's the main form
used today. Below are the main four types of paid exposure for search engine
marketing, there are more but these 4 cover most of it.

• open bid positioning
• Internet banner ads
• Internet paid links
• Miscellaneous....includes print and media campaigns outside the
  internet.

Search engine marketing - Open bid positioning:
With this form of search engine marketing you are bidding against your
competitors for the top positions within each of the search engines. A new
advertiser can go to Yahoo paid marketing (formerly Overture) or Google,
sign up, and within 24 hours see your ads appear online. When you set up
your internet search engine marketing campaign you will be asked what *key
words* you would like to advertise under. This is where you will compile a
list of key words that best describe what you are trying to sell. For
example if you sell soap, your key word is "soap". If you also have green
soap to sell then you may also add "green soap" as an additional key word.
Each of your keywords should be descriptive words people would use to search
for the items you are selling.

Realistically speaking your keywords is your product line or services
offered. After you compile a list of relevant keywords you will then be
asked to describe what it is you have to offer, this will then become your *ad
description*, see below for an example. You will next be prompted for the
amount you are willing to pay per click for each of your selected key words.
These amounts may vary based on the items demand online and the amount of
competitors using search engine marketing for your product or service. Image
Google ad words

The average at home internet user can have paid search engine marketing
figured out within an hour or two. I asked a new assistant of mine to go and
try to figure it out, and in about an hour she was almost proficient at the
paid search engine marketing program. Most paid search engine marketing
firms act like paid marketing is some real hard thing to do, but it is not.
Rather than charge companies for this service, I teach them how to do it and
monitor it on their own, ultimately they will have better results than a
paid search engine marketing firm can deliver. However this absolutely will
not work with true search engine optimization.

Search Engine Marketing bidding with money you can be number one online within the paid search engines, but does that mean you will make more money? Keep in mind when you are bidding for top search engine placement and do bid and get the top paid position that you yourself have also made a statement that says this, "I believe this key word is worth paying more for than any other person thinks its worth". Sometimes people are correct, but most of the time, they are wrong.

The problems with paid search engine marketing are great, and will soon
increase. Today very few people understand paid marketing, so very few
persons are bidding for key terms. Most of the people doing the bidding
understand that they must still be able to make a profit at the end of the
day. Knowing this they stay within their means and avoid bidding to high.

An important element to take into consideration when bidding is the return
on investment or ROI for short. People that follow ROI's understand profit
as well as bottom lines and bid accordingly. New advertisers more often then
not will overbid and soon find their way into internet paid search engine
marketing. When the day comes and almost every person and companies begin to bid search terms, the effect will over inflate click prices to the point of
non-profitable, perhaps even killing many large long time established online
retailers with paid search engine marketing plans.

Internet retailers seem to come and go. Most new website owners want to be
millionaires and are usually done talking about their great new web site in
about 6 months to a year. That's about how long it takes for them to figure
out that their dream has died. Unfortunately, during this time they still
have the big internet dream and some may also have some money to spend. So
the new guy begins his online business knowing almost nothing about
e-commerce and starts to spend money.

New advertisers love to see their website listed number one in the search
engines, so they enter into the bidding game and over bid just to get the
top paid position. This works out really well for Yahoo and Google. It's
like bringing a person to a high stakes Black Jack game that has never
played black Jack. This would be a Casino's best potential customer; this
customer will most likely make many mistakes that will favor the casino.
This customer may even upset the flow of the whole table and others gambling
around them, perhaps even frustrate other players into making mistakes.
Google and Yahoo understand this very well, so instead of making an arena of
experts only, they are inviting anyone and everyone to start the bidding!

Keep in mindthe search engines job is to make money. They will not be loyal to you, when other additional dollars are available. If a company grows thru
a paid marketing campaign, which many do, they have no assurance that a
group of newcomers won't come and stupidly drive them out of business by
over bidding on a search term. You may build a company up with
infrastructure, leases, employees, etc... and then have it all disappear as
quick as it came, because an uneducated business person has overbid your key
search terms to the point that you know the ROI will be a money loser. Of
course you can wait till they run out of money to bid with, but most likely
there will be another newcomer with a pocket of cash to overbid your search
term. Fortunately, internet marketing does not end here.