PPC vs Organic Listings; the basics

by Lori on February 20, 2010

PPC VERSUS ORGANIC SEARCH

PPC and Organic Search both have their own advantages over the other. But before we can assess which one is more preferable, and more workable than the other, we must first see what both models have to offer individually.

What is Pay Per Click?

Pay per click or PPC, is an advertising model that is utilized on websites where advertisers are obliged to pay their host only when their advertisements are clicked. In the case of search engines, advertisers bid for keyword phrases that suit their target market. Most content sites charge fixed prices with each click, not preferring to use that system of bidding. Many PPC providers are available on the web, but the largest and most preferred operators are Google AdWords, Yahoo!Search Marketing and Microsoft AdCenter. These operate using a bidding system. This is because Cost per Click usually varies depending upon the search engine and the current competition for a certain keyword that is currently being used. Though the advertising model itself is vulnerable to abuse because of click fraud, Google and other companies have invested in automated systems in order to protect themselves against abusive clicks, usually done by competitors and other web developers.

What is Organic Search?

Organic search results appear in search engine results. They appear according to their relevance to what is searched, not as they are advertised. Pay Per Click is considered as a non-organic search. This distinction is how one should distinguish the two: after entering terms for a search, the first few results are typically advertisements or sponsored results. One can tell they are advertisements because they are usually in a box that distinguishes them from websites in the organic listings; these sites utilize SEO or Search Engine Optimization. The term, as of recent, has grown to be recognized throughout the web marketing industry. As of July 2009, it is used by Google through sites such as Google Analytics. These “organic” listings do not cost money, just to show the user what the most accurate results are, based on the words that they type; however, it is very likely that the companies who are ranking in the top positions are paying for SEO. One of Google’s claims is that a good percentage of their users click for organic searches, as opposed to clicking on ads. The reason many people prefer to click on the organic listings is the belief that companies that rank in the top slots are “authorities” in their field; this is because Google works hard to rank companies on their relevance and strength to the search terms used. Thus it is worthwhile for companies to have an ongoing SEO campaign to help them rank high in the results pages.

Advantages and disadvantages

In order to find out which advertising method that is more suitable to the current work conditions, both advantages and disadvantages for each method must be assessed. First up are the advantages of Pay Per Click advertising. One is that it is faster to set up results for this type of method. Right after setting up a PPC campaign, the ads will immediately show on the pages in less than ten minutes. Another is that it is easier to keep track of what keywords get the most visitors or the most clicks; and what keywords convert into money or profit and what do not.

Another very obvious reason is that it is a good money-making strategy. However, with every advantage that comes with Pay per Click there are an equal set of disadvantages. While it is easy to make money, each visitor has a “click” price. If you stop paying, the visitors may stop coming (unless they are return visitors who previously found and liked your site). Even though a PPC campaign is easy to set up, it takes expertise to fine tune it; there is a large amount of competition and novice PPC advertisers can end up wasting money if they do not have the right knowledge. Also, money would be wasted if the site does not do anything to convert visitors to prospects and eventually to customers.

In the case of organic searches, even though there is not “click” charge per visitor, there certainly will be ongoing SEO costs to achieve and maintain your high search results ranking; it is only after you have high brand recognition and massive backlinks to your site that you can ease off on your SEO campaign. You will always need to monitor what your competition is doing.

If your site is included in online directories or website listings, there is a large chance that every visitor would become a customer. There is also less long term investment, financially speaking. Which means, while the results won’t be immediate, in the long run you will reap the benefits of having the backlinks; this will help build your authority ranking with Google. This will lead to higher ranking in the search engine results pages (SERPs).

The downside of organic searches is that it takes time to increase your ranking in the popular search engines. There are a lot of variables regarding how fast you can expect to rise in the rankings including how competitive your chosen industry is. Also, you need to build high quality and relevant content. Whatever the case, those who want to invest in either type must first assess resources, consider carefully what is best for the website’s niche and decide how much time and expertise is required on your part to get it done right. Chances are great that you will get faster and better results if you outsource your SEO and PPC campaigns to experts; it is the higher and best use of your time and money.

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