The pay per click advertising model is one of the most modern forms of promoting a product or service outside of the standard traditional media. The name of PPC or pay-per-click comes from the concept that lies at the basis of the process. Ads with relevant keywords are displayed on web sites, on search engine result pages or as an integrated part of web page content. Every time a web user clicks on an ad, the advertiser is charged, or in other words, he or she pays for the click. The best keywords included in such ads can rise up to $30 or even $50 per click, which is a huge price to pay if we consider regular advertising budgets.
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Such keyword bids are usually practiced by Google Adwords that is by far the most expensive pay per click advertising program available on the world wide web. With lots of market studies performed over the years, experts have come to the conclusion that the best variant of the pay per click model is the one that targets a user’s geographic area. Otherwise, it is very possible for a user to make a search online, get information on the features of the product, its price and producer, and then go buy it from the closest local outlet.

There is another vicious circle here that includes many local businesses as well. Given the fact that most of the web traffic is actually out of reach for them because of the geographical distances, local businesses do not find it advantageous to invest in pay per click campaigns because these would be a money-waste in their opinion. The new approach to small business Internet marketing could bring a change of perspective but this is not all that sure on the long run, for the moment, it remains to be seen how many of the local businesses that venture to advertise online manage to make a profit out of the pay per click model.

Since lots of advertisers lack the knowledge to make a good choice of key words and key phrases to optimize their ads with, they often choose professional agencies to run their pay per click campaigns for them. Once the ads are posted on the Internet, the process is far from being over. There follows a permanent period of monitoring and analysis to identify which keywords are performing poorly in search engines and what is the return on investment rate. All sorts of tools can assist a web developer in the effort of tracking all the ads and keywords performance.