Starting this week Google is trying out a new type of search ad and pricing system in the San Francisco and San Diego markets. Currently, advertisers set up an advertising campaign, pick keywords, and bid on them to select when and where their ads will appear on search pages. Google will test a new flat rate pricing model. They will offer advertisers and non-advertisers a search ad for a flat fee. Google software will analyze different factors and determine what the average price for an ad is and will control where and when an ad appears. In other words, if you are a current advertiser, Google will use your keywords and bid prices to automatically set up accounts for your competitors. As a serious advertiser on Google, you want to pay them for traffic and you optimize your marketing efforts to get relevant traffic from Google. Now, Google will use your efforts as a free market research tool for competing businesses. Not good news for local advertisers who take their marketing campaigns seriously.

PPC Advertising stands for pay-per-click advertising. It is simply online marketing where advertisers pay only when their ads get clicked. In other words, as an advertiser, you are paying for the traffic to your website through an advertising campaign. Usually, you select keywords that are relevant to your business or website, sign up with PPC provider (like Google), and create ads relevant to your keywords and your website. When someone searches for a keyword you selected, your ad comes up and if it is compelling enough, that someone clicks on it and goes to your website. You pay for that click.

PPC advertising is very much different from newspaper, radio, magazine advertisement. With PPC campaign you can target your audience much better. And you are putting your ad in front of the very people who are looking for a service like you provide; they are more likely to become your customer. There is also much better and faster tracking of your success if you are serious about your return on investment. And most importantly, it is a lot cheaper for you if you do it right.