The internet as we know it is constantly changing and facilitating to
the needs of people all over the globe. Every day there are new
applications and pieces of software being produced like people spewing
out of a revolving door. With every new innovation on the web comes an
enormous influx of visitors. The flooding of online searches has caught
the eye of many entrepreneurs looking to make a buck. There are two main
players when it comes to making money off of all of this traffic. One
is the advertiser and the other is the publisher. The online advertiser
has several ways to promote his or her product. It is widely known that
pay per click advertising or PPC is the leading form of online
advertising. Advertisers usually run campaigns where they get charged a
specific amount of money every time their ad is clicked. The other
player is the publisher or search engine marketer. Essentially, the
publisher or search engine marketer is the person that displays the
advertiser’s ad to targeted audiences on the web. Now, it is important
to understand that both of these topics are so intricate that they could
be discussed for days. However, this article will explain the overall
ideas and concepts associated with both.

The ultimate goal for advertising campaigns is to make money. Any
good marketer knows that there is no better way to make money than to
advertise in front of a specific, targeted audience of visitors. This is
exactly where the internet shines. For example, a billboard is another
form of advertisement where an ad is placed in front of thousands of
people driving about in their cars each day. A billboard is going to
display an ad in front of a large, un-targeted audience. Let’s examine
what happens when a fast food ad on a billboard is viewed by three
people. One is an average person that eats fast food regularly. The
other is a diabetic who is on a strict, healthy diet. The other is a
vegetarian who never eats fast food. Do you see what’s going on here?
The result of un-targeted advertising is low conversion rates. With the
internet, a baseball bat company can advertise on specific, baseball bat
niche site where every visitor is interested in baseball bat. Do you
see the difference? Having targeted visitors greatly increases the rate
at which visitors become buyers, and advertisers make money. Now, it is
time to introduce the topic of contextual advertising. Contextual
advertisements are excellent for a single reason, they can captivate the
reader’s attention and thus increase the click though rate. The click
through rate is the percentage of visitors that visited a specific site
and clicked an advertisement. So basically PPC campaigns are a great way
to not only increase the public’s awareness of a particular product,
but also increase sales. In fact, there are a growing number of people
out there that make their entire living off of taking a product,
creating a pay per click campaign, and reaping the profits. The idea
behind this lucrative strategy is simple. If an advertiser gets charged
ten cents every time their ad is clicked and makes a fifty dollar sale
for every twenty five visitors, then a forty seven dollar profit was
just made. With the right product, one could potentially make some
serious money. With any pay per click campaign there are two important
aspects to understand. The first is choosing the right topic. Hot topics
and necessities are always a good choice. The next topic is the
conversion rate. Every product will have a different conversion rate. It
is important to know this statistic like the back of your hand if you
plan on making any money, especially when you are spending money to make
it.

Now that we have talked about the advertising end of the spectrum,
let’s talk about the search engine marketer’s end. Search engine
marketers are most notably known as webmasters, or people who own
websites. These people are the ones that have the ability to harness the
mass amounts of traffic that flood the web each and every day. The
source of all of this targeted, organic traffic is through search
engines. They have the option to choose which method to monetize their
traffic. One of the most well known forms of monetization is contextual
advertising. Many contextual pay per click advertising networks are
great for making money because they have the ability to recognize the
main point of a particular page’s content and then serve related ads
based upon that content. If you remember from earlier on in the
discussion, then you know that targeted advertising is key for making
money on both sides of the spectrum. So, webmasters decide on which
advertising network to use and create ads for their websites. After all
customizations are finished, the ad is inserted into the website’s
template and the ads are served to visitors. The publisher then earns a
certain percentage of each click. The percentages earned for each click
are weighed upon a variety of different factors. Some topics or keywords
pay more per click than others. Essentially, the network splits the
amount of money earned with the publisher because, quite frankly, the
publisher is helping them make more money. Every advertising network is
going to have different rates or percentages shared with the publisher.
The anomalous part about it is that not all networks choose to list this
“shared” percentage. So publishers never really know what percentage of
each click that they are getting. Anyways, publishing targeted ads on a
website is a highly effective method of harnessing the power of traffic
into a steady stream of income. There have been many principles covered
in this article that I hope you found useful. Remember that the basic
essentials of successful advertising are volume and targeted visitors.

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