Pay Per Click advertising is placing ads for products or services on search engines and on content sites across the Internet. They are typically the first results presented following a search query. Payment is made when users clicks through to the web site from the search engine link. Link position on a results page is normally set by what's called a quality score. The quality score is made up of your click-through rate, and the bid price the advertiser is willing to bid. It is what ultimately determines your position in the search listings after a search query.

Pay per click advertising has evolved rapidly over the last couple of years, though relatively new in the market. From its inception in late 90s it has taken internet marketing and advertising to exciting new levels. Prior to the Pay Per Click model it was very difficult if not impossible for new advertisers to get to the top of the search results on major search engines. With the advent of Pay Per Click all that changed. Now the subtle difference between a seller doing well and another doing better on the internet usually boils down to targeting the right keywords and sending the searcher to the right landing pages.

There is lots of talk all over the Internet regarding Pay-Per-Click Advertising. Some people swear by it and some say it is waste of your time. Although Pay-Per-Click Advertising can be expensive, if you know your margins and are vigilant it has proven to be very cost effective.

Why? Because everybody wins. Customers find what they're looking for. The advertiser's business grows and thrives with new business. The search engines get paid.

Presently Google Adwords, Yahoo Search Marketing and Microsoft Ad Center are the most popular search engines offering the Pay-Per-Click model. Even though it's similar the submission process differs with each search engine. Unless an advertiser is experienced in dealing with the nuances of each engine, it is probably wise to outsource the submission and maintenance to a third party firm.

By just paying for the traffic companies can make sure that their product or service gets listed high in the search results. Believing that search engine optimization is free is a big mistake. There can be a huge cost associated with creating in-bound links, understanding and applying the correct keyword density and designing a site that still converts at a reasonable return on investment.

The pay per click model is tailor made for advertisers seeking quick results. This goes for seasonal products say chocolates, cards and other gifts which become hot selling items during festive season of Christmas. But since the market for these products exists only for a very short period the sellers wants to hog all the limelight during this period. A PPC model assures the advertiser his products or services can be found by the consumer in time to take advantage of the season.