Pay-per-click (PPC) advertising is a technique used by website owners in which they pay to have their ads included on search engines, websites, and advertising networks. You have probably seen PPC ads on search engines as they usually appear above or beside the regular search results.

To use PPC, a webmaster must bid on the keywords that he believes an internet user would type into the search engine search box if that user was looking for products or services related to the webmaster’s website. For example, if you were selling unicycles on your website, you would bid on the keyword “unicycles.” Ideally, an internet user in the market for a unicycle would type that word into the search box, see the advertisement for your website, and click on it.

The ads that appear on websites and search engines are called “sponsored links.” If you choose to use one of these sponsored links for your business, you only have to pay if a user clicks on the link to your site; hence the name “pay-per-click.”
PPC is extremely popular because it is both affordable, even for a small business owner just starting out, and effective.

Depending on which search engines you choose to use for yours ads, you may be able to pay as little as $0.01 per click. Prices often go as high as $0.50 per click. If you use search terms that are very popular, you will have to pay much more than that.
PPC effectiveness can work to the advantage of the small business owner just beginning to use SEM and SEO techniques since it does take some time for organic rankings to occur. It can also be helpful during times when the website is being re-indexed, or during any other time that a steady steam of traffic cannot be guaranteed by organic SEO.

Any webmaster planning to use PPC should do the following:

1. Know who the competitors are by using the Keyword Suggestion Tool. Your competitors are those who are using the same keywords you want to use or are currently using.
2. Come up with the exact keywords that you plan to use in your ad.
3. Make sure you know how to write good copy. Content is crucial for conversion. This will ensure that searchers who see your ad will click on it.
4. Create a good landing page. This is the page that your ad will link to.
5. Determine how you will analyze your PPC campaigns to make sure you are bidding on the correct keywords.

PPC can be an effective tool for small business since it provides immediate results and is affordable. But once organic search engine results begin to appear, it is in the best interest of the small business owner to find a good mix of PPC and organic SEO. On of the best ways to do this is to consult an internet marketing professional who can help you determine how much of your SEM should be dedicated to PPC and how much should be dedicated to organic SEO.

In summary, PPC can ensure that you get instant traffic, it can ensure exposure on all of the major search engines, it only requires you to pay when a user clicks on your ad, and you should make sure that you have an appropriate balance of PPC and organic SEO.