Pay-per-click advertising, or PPC, is a way of advertising on web sites in which the advertiser pays for the ads only when someone clicks on them to get to their site. For those involved, there's money to be made on either side of the road -- as an advertiser and as the site on which the ads are posted.

PPC involves advertisers placing bids on the key words they believe their potential customers will use to find products or services like their own. For example, if you are selling wool socks, you might bid on words like "socks," "wool," or even "wool socks." The greater the demand for the particular key word, the higher the bidding prices will be for top spots on the search engine.

PPC ads usually appear in the right margin of a search engine when a user types in the bid upon key words to perform a search. The order in which your ad will appear depends on where your bid fell; if you came in with the highest bid, your ad will appear at the top of the list. In general, the top three bids show up on the first screen of the search without the user having to scroll down.

PPC advertising is an excellent means of making money for web site owners who may not have a product or service of their own to sell. If you have a site or blog that attracts a lot of visitors, you could put it to work for you with PPC ads. Many companies offer affiliate programs that pay affiliates for placing ads for the company on their web site. Each time a visitor to the affiliate's site clicks on the ad, the company pays the affiliate a set fee. Fees can range anywhere from $.05 to $.50 or higher per click.

On the other side, companies that want to enhance their presence on the web and draw more visitors to their site can work wonders with relatively inexpensive PPC ads. However, when starting a PPC campaign, it's important to think carefully about what you want to accomplish and whether or not PPC ads are the way to do it.

In general, PPC ads work remarkably well for short advertising campaigns. For example, if your company is introducing a new product or attempting to build an opt-in list, PPC ads might be perfect for the purpose. They're a very quick way of getting the word out about your products since a PPC campaign can be started within 24 to 48 hours.

Another thing to consider is which key words you'll bid on. Remember, the more in demand a particular keyword is, the more expensive it will be. So, if you're selling a specific brand of wool socks, you might consider bidding on "Sheepspride Wool Socks" rather than just "wool socks." Chances are you'll pay much less and, if your customers are specifically looking for that brand, they'll find your site quickly and easily.

Once you've established a PPC campaign, be sure to continually check on it. Don't just create it and forget it. Make sure your campaign is doing what you want it to. Watch your conversion rate. Some search engines offer a reporting tool to help you do this. However, if the search engine you're advertising on doesn't, there are software products available to assist you with tracking tasks.

Finally, make sure your advertisement is well written. At the very least, ensure it's free of typographical, grammar, and spelling errors. The ads are usually just one line, so your line has to be eye-catching and to the point. The search engine will have rules about what's allowed, so be sure you're familiar with them.

Regardless of which side of PPC advertising you're on, advertiser or affiliate, it can be an excellent way to boost your income. Just be sure the program you're involved in is one that meets your needs. There are a lot of options out there, so taking the time to do your research can mean the difference between a few dollars and hundreds.