What about Pay-Per-Click search engines? Is this a cost-effective method of advertising?
Monday, April 7th, 2008Some search engines offer a pay-per-click model where you can bid for top placement. The highest bidder for a chosen term ranks highest in the “sponsored” search engine results for this term, the next highest appears second, etc. You pay your bid price each time a user clicks on your listing.
The more you bid, the higher your listing is ranked. PPC often turns into bidding wars driving the cost of some keywords to more than $5 per click.
The effectiveness of pay-per-click depends on how much gross profit you make per item sold and what your conversion ratio is: you may be able to turn a profit. If you are a small business owner, bidding wars may drive prices out of your reach. It is often difficult to compete with big businesses with larger budgets.
Posted by Mahesh ( Tryangled )