PPC or pay per click advertising is a method of online marketing that puts adverts at the top of the search engine rankings without the need for a lengthy search engine optimisation process. This intention of this article however is not to discount the worth of SEO and promote PPC, instead it hopes to show that both can work simultaneously to produce effective results and improve online trade.

Fundamentally PPC is conducted by opening an account with the search engine, in Google's case this is AdWords. Once an account has been opened it is possible to enter ads into the search engine, a decision must be made however what keywords the ads will be related to as a matter of course.

When the keywords have been chosen it is possible for the ads to be placed in the search engine, the result will be that when searchers enter these keywords the ads will show up at the top and the right hand side of the rankings. The ultimate objective is that searchers will see the ad, click on it and hence enter the site; the hope of advertisers is that they will then buy the product or service.

The three major search engines, Google, Yahoo and MSN all have different programs that are used for the placement of PPC ads. Google, as previously stated have a program named AdWords, Yahoo has Search Marketing, formerly known as Overture and MSN has adCenter. Each have their own benefits although naturally the majority use AdWords as Google is the most popular search engine in the world and will be able to drive the largest amount of traffic.

The process of buying ads is constructed in an auction structure. PPC advertising specialists will put bids in for certain key terms and who pays the most will normally have their advert placed higher although the positioning of adverts takes into account other factors as well. The price of the advert is also dependent upon the popularity of the search term; understandably an advert for the key term of insurance is likely to cost more than an advert for buckets.

One of the most important aspects of PPC, and advertising more generally is the return on investment or ROI. Fundamentally this means that the expenditure outlaid for the advertising should bring the company enough money to cover the costs of the advert and also provide enough profit to make it worthwhile. ROI is one of the reasons that monitoring the success of existing adverts is so important, as unsuccessful adverts should be altered or removed to improve the ROI.

PPC can produce great results in a small amount of time, especially when compare with regular SEO. Ads are placed almost instantaneously and hence traffic will be increased rapidly. It should be remembered however that a dual faceted approach of both PPC and SEO will yield the best results; PPC can tackle the more generic phrases whilst SEO can focus on more specific key words. Ultimately businesses that utilise both strategies will normally see high ROI and increased online trade.

It is hoped this article has given a brief introduction into the world of PPC advertising and highlighted how it can be used to increase traffic to a website and hence improve company profits. In a business world where securing trade is becoming ever more difficult, internet advertising is one of the best methods to ensure survival and success.

Internet marketing expert Thomas Pretty studies the PPC advertising process and how it can be used to drive traffic to websites and generate commerce.