Pay per click is the Internet advertising model where advertisers pay to their host only when a visitor clicks on their advertisement. On major search engines, there are 300 million searches each day, causing 80% internet traffic. Cost per click is the money that advertisers pay to search engines for a single click on their ad for each visiting customer to their website. Top placement is given to the highest bidder of a particular phrase or word.

Websites utilizing Pay Per Click will display the ad when there is a match of keyword query with the keyword list of the advertiser. Though there are several PPC providers, Yahoo Search Marketing, Google AdWords and Microsoft adCenter are the three biggest network operators. It is easy to manage 24 hours a day with the help of certain tools, and by using right keywords and creativity, attract right customers. To make pay per click work for you, choose more specific and descriptive search items that describe and reflect your product or service.

You need to target your online advertisements around the business priorities such as most profitable products, seasonal purchase, and so on. In the case of flat-rate pay per click, publisher and advertiser agree on a fixed amount payable for each click. The agreed amount is based on the content of the pages, and content that usually attracts more visitors have higher Cost Per Click. This type of model is common to comparison shopping engines that publish the rate cards, but these prices are usually minimal and for more visibility, the advertisers can pay more.

The bid-based model involves a contract signed by the advertiser that allows them to compete with several other advertisers in the auction hosted by the advertising network or publisher. This word attracts just the lookers and not many buyers. For any PPC campaign, certain management tools are necessary, as they make the job much easier by automating several processes that you need to monitor or manage to make sure that your PPC revenues are being used wisely. Although there is a good blend of PPC marketing networks, Google AdWords, Yahoo, Ask Follow and MSN are the major players.

All the PPC networks strictly restrict the kind of copy that will appear in the listing of the search engines and look at the advertising text as well as the link pointer before approving it for publication.