Studies have shown that a person will visit a search engine (Goggle, Yahoo, etc.) to locate a website which sells the goods and services they are interested in purchasing. Those same studies show that people will usually visit the top 3 websites which are listed on the search engine results page. Therefore the goal of a PPC marketing program is to be displayed in one of the top three spots.

The force which drives the PPC model is an old fashion auction. Allow me to explain, taking the example from one of my former employers, Churchill Corporate Services. Our goal is to have our website displayed in the first position when someone searches on corporate housing in New Jersey. Let’s say the Oakwood Homes has the first position and it costs them $1.00 every time a person clicks on that link. Now, In order for Churchill to gain control of the first position they must agree to pay a price higher then $1.00. In this case $1.01. This process goes on 24/7.

Remember I stated that all the search engines will display the first three PPC positions? This is where the gamesmanship and PPC management comes into play. There are ways for us ‘sneak into’ the second or third position so that our website is in the top three positions, achieving the same marketing goals, and managing our budget. These tasks can be performed as often as the budget allows and your industry dictates.

The sample below illustrates a search of Overture for sporting goods. Notice the last line of each entry. If you click on the address (in blue) of the website you will taken to the companies website and you can begin your shopping. 

While you are winging your way to check out the latest and greatest, the search engine folks are charging the website owners the price mentioned at the end of the listing (in red):