Many small companies have found a way to significantly increase the amount of business they get from the Web: Pay-Per-Click advertising. In fact, for some, Pay-Per-Click advertising (or PPC) is a key to staying competitive in today’s marketplace. Search engines like Google and Yahoo have dramatically improved the quality and effectiveness of helping everyday users do local searching for small businesses.

PPC marketing is sometimes referred to as Performance Based Marketing or Pay-for-Performance
or Cost-per-Click. It is an auction-style advertising method of paying for placement on the major
search engines. With PPC, you as the advertiser have the ability to get exposure on any search
engine results page rather than leaving it to chance or the ever-changing formulas set by the search engines.

With PPC, you purchase the right to have your site’s name and brief description appear as a link
alongside, above or on the same page as regular search returns. This strategy typically yields the
most consistent results and, when organized properly, will help deliver more business from your site.

How Does Pay-Per-Click Marketing Work?
Most search engines have two sets of results on every webpage they show to users. The top results
are normally paid (sponsor) results and the other results are called organic results. The difference
between these results is straightforward.

Sponsor results are websites that have paid to be displayed on the results page of the particular
keyword or keywords that are being searched. Organic results are websites that have been optimized (or just got there by random luck) so that they would be placed on the results page of a
particular term or phrase being searched by a user.

Small and large business advertisers bid on keywords with the top bidders getting their sites
displayed first.

There are multiple providers of Pay-Per-Click marketing but for most website marketing programs, you need only focus on the Google Adwords and Yahoo! Sponsored Search (formerly
Overture.com) which runs on MSN, CNN.com, Yahoo! and other major sites.

Why PPC marketing works.
First, you only pay if a user clicks on your link. It costs nothing to be displayed on the results page.

As a result, this doubles as a branding opportunity Second, while a website can only be optimized for a certain number of phrases, utilizing PPC programs allows you to get coverage on terms
which are not highly trafficked or are very specialized. Also, despite the lure of ‘free’ traffic from organic search results, it is almost always less expensive to use pay-for-performance instead of having a web page built to attack that particular term or phrase.

Third, you can track what you are spending, turn the program on and off, and you can see exactly
what is working and what is not. Not many other marketing and advertising programs can make that claim.

How do I get started?
#1 – Do your homework
Since PPC is based on the search terms that your potential clients are likely to use, identify terms
that describe your business and its services and your local service area. Make a list of all those terms and prioritize them based on their relevance to you.

For instance, a plumber in Atlanta might list the following his as his business terms:

Plumber, plumbing, remodeling, new bathroom, sink installation, toilet installation, leaks, clogged drain.

And then he would consider how search engine users might describe his service area. He should
consider every location he serves – Neighborhoods, cities, suburbs, counties. His list
might be:

Atlanta, North Atlanta, Fulton County, Cobb County, Buckhead, Collier Hills, Morningside,
Brookwood Hills, Peachtree Hills

With PPC, you’ll bid on your chosen keywords or combinations of keywords. Remember that each
variation requires a unique bid. For example,

“Dallas Texas Plumber� is different from
“Dallas TX plumber� which is different from
“Dallas Plumber�

Keep this mind when you start your program and when you optimize your keywords (Step 3).

#2 – Set a budget
Search engine marketing is different than a directory ad in that it is dynamic. Optimizing your
keywords and determining which PPC program works best for you will require some trial and
error. Allocating $500 in a “one shot� approach will likely yield disappointing results.

Consider how much a customer is worth to your bottom line and how much new business you
would like. Multiple those two numbers together and then take 10%- 30% of that number to determine a sensible investment in marketing for your business’ future. Budget that amount over a 3-6 month period to get started.

#3 – Optimize, optimize, optimize
As in the Dallas plumber example, you will have some variables to sort through as you determine
what the right keywords for you are. While you might have a clear idea of how you would describe your business and its service area, the public might have another. This process of
optimization is par for the course and should be expected.

Can I do it myself?
Yes. PPC programs are accessible to all. The major players have done a fairly good job of
providing information, glossaries and step-by-step instructions to guide you through the process.
Google even has a Keyword Tool to simplify the selection process. It suggests useful keyword
variations and related terms.

Some businesses want the additional and consistent web traffic that PPC can bring but don’t have
the time to set up a program and track it the way it should be tracked. If your time is tight, consider seeking help from your website provider or a web marketing firm recommended by your professional association.

Conclusion
To get the most from your website, consider Pay-Per-Click marketing. It is a proven and predictable tool to get in front of the many customers who use the web every day to find local
businesses. PPC allows you to slowly ramp up your web marketing campaign, so don’t delay just
because your budget is small or you are new to this approach.