Web Tips

Our previous two Web Tips columns discussed how search engines (a.k.a. Google, Yahoo) work. A potential website visitor enters a word or phrase into the search engine’s search box and the results are matched against a database. The hits are then presented to the potential visitor in order of the search engine’s estimation of their relevance. Businesses compete for top page ranking by using various search engine optimization (SEO) strategies. (See Blog at http://www.peninsulawebdesign.com to review these columns.) This methodology is often referred to as organic listings.

Achieving top listings on the various search engines can sometimes prove to be difficult. An alternative to organic listings is to buy your way to the top. This is known in the SEO world as Pay per Click (PPC) advertising. PPC advertising is sold on a basis where the advertiser is only charged when a website visitor actually clicks on their ad.

PPC advertising has been used since 2001. They are presented to the user separate from the organic listings, usually at the top or right side of the screen. In today’s world, most users can easily distinguish between organic and PPC listings. But this was not always true.

In 2001, search engines did not distinguish to the user which hits were organic versus PPC listings. As you can imagine, this led to some controversy in the SEO world. In June of 2002, the Federal Trade Commission issued rules requiring search engines to distinguish paid advertising from organic listings.

It is important to note, that PPC advertising does not influence organic ranking. For example, a business may have a very extensive and costly advertising program, but this in no way will boost their organic rankings.

Google and Yahoo are the two main players in the PPC advertising world. Google offers a product called AdWords, while Yahoo’s product is named Yahoo Search Marketing. Generally speaking, both products work in a similar manner and share these same characteristics:

• The advertiser selects keywords or phrases that trigger the ad to appear. For example, if your business sells furniture, some of your keywords may be “Brand X Tables,” “Barn Wood End Tables,” etc.

• The advertiser sets a monthly budget for their ad campaign. If you are willing to spend $100/month your cost will not exceed that amount.

• The advertiser sets the maximum amount they are willing to pay each time a website visitor clicks on their ad. This can range from $.10 to $5 and more. Of course the most popular keywords can be extremely costly to bid on. The trick is to find good keywords not the most expensive ones.

PPC advertising can be a very worthwhile means of connecting with potential customers. Businesses which sell products as well as services can benefit. PPC advertising lets businesses reach people who are already searching online for information relating to their product or service.

Sources: http://www.google.com/adwords; searchmarketing.yahoo.com; “Buying Your Way In,” Danny Sullivan, http://www.searchenginewatch.com; “Pay-Per-Click Tips for Attracting Traffic,” Cory Rudi, http://www.smallbusiness.yahoo.com.

Wally Laba is the owner of Peninsula Web Design, Inc based in Door County. Peninsula Web Design specializes in creating ecommerce and general websites for small businesses. Wally has over 25 years working in Information Technology for various companies in the Chicago land area. Wally has a Bachelors degree in Computer Science and a M.B.A. specializing in Information Technology. For more information visit http://www.peninsulawebdesign.com or call 920.559.6136.