Pay per click or PPC advertising is possibly the easiest and most effective way to market your business online. Getting your website listed in the search engines is vital due to the fact that the majority of website traffic (statistics say over 80%) comes from the search engines. Effective PPC management begins with devising a strategy to drive qualified traffic to your website.

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PPC (PPC) advertising is simply advertising your website through the use of the search engines' "sponsored listings". When using PPC you bid on keywords or keyword phrases that your targeted prospects may use to find whatever your website offers. Yahoo! Search Marketing (formerly known as Overture) for instance, only considers the bid amount in ranking a site. The most popular PPC Google Adwords uses bid value and your success (click through) rate.

To develop a your PPC strategy and plan, you must conduct market research. This should consist of identifying your target market (preferably a niche market), identifying keywords that your target market uses to search for what you are offering, and analyzing the keywords and alternative keywords that will appeal to your target market.

During your keyword analysis, you will want to find out how popular keywords are and what the average bids are for certain keywords you are considering for budgeting purposes since defining a budget is a necessary part of PPC management.

Budgeting for PPC advertising involves not only determining how much money you can spend on your campaign, but basing that on the monetary value of a click to your website since you are paying per click.

If you approach PPC advertising logically, follow the direct marketing mantra of test, test, test, monitor results regularly and make adjustments only according to results PPC advertising is a powerful tool for driving profitable traffic to your site.

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