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The Concept of Pay Per Click Advertising
This form of advertisement is simple; the business is to pay the search engine from which you are being sponsored a small fee for every click. With the proper strategy, you will not have to worry about the cost. PPC advertising can boost online traffic and sales.
Beneficial for Consumers
You may be assuming that sponsored ads could annoy the consumer. In reality, these ads are specific to the consumer’s needs using keywords to match their search. People use search engines typically to search for products and services, and a sponsored ad will most likely be useful to them.
The Origin of PPC Marketing
The first pay per click advertising model documented was released by a company by the name of Planet Oasis back in 1996. This was two years before Google had even become official incorporation. During this time, Google was just an initial research idea launched by Larry Page and Sergey Brin. At this time, Yahoo and Lycos were the most common search engines.
The homepage of Planet Oasis was similar to a virtual city with over 200 different companies and websites listed for users to have immediate access. Each building in the virtual town had a web logo that was a hyperlink to the company’s page. The concept was that the virtual city would grow over time, with more companies being listed on the site.
When this service first launched, 15 companies, including Timer Warner, Warner Bros, The New York Times, and Yahoo, all paid 10,000 just be featured on the homepage. Smaller companies paid $3,000 each to be featured in smaller category areas such as magazines, games, and entertainment.
Curated by Ark Interface II, the creators behind Planet Oasis was the beginning of their online
advertising model. The company hoped to charge sponsors 1/2 for each user who clicked on the ads. Many participants weren’t enthused about the pay-per-click model and preferred a fixed-fee.
Pay-Per-Click Was Once a Flop
At the same time, another company by the name of Open Text introduced a new PPC model that allowed advertisers to bid on particular keywords. Unlike the success they hoped for, their customers believed that it ruined the principle of their website. Customers argued that users expected the best results that appeared at the top, not just random sponsored results. Most businesses wanted to stick to the traditional way, which involved a fixed rate. Many companies believed that the entire concept ruined the idea of search engines.
The Growth of PPC
Not even a year after (1997) the Planet Oasis marketing model was released, the website had over 400 companies using their service. In reality, many businesses were suspect of the pay per click model, but many started to jump on the bandwagon.
Many of the companies didn’t have a choice because competitors were already taking advantage of this style of marketing. On average, advertisers paid $0.005 to $0.25, in addition to a fee to appear on the website.
Not long after, many companies began to use this model, and other competitors copied this marketing blueprint.
In 1998 Goto.com launch a PPC bidding system that allows advertisers to bid on keywords. Following the success of Planet Oasis and its innovative marketing mode, the company Goto.com launched its very own PPC model. Although the presence of this business was new, they caught the attention of many companies.
In contrast to Planet Oasis, this model allowed advertisers to bid against one another to decide who’s ads were featured on the website. Not only did this increase money flow for Goto.com, it likewise allowed advertisers to pay less for less competitive keywords. This was seen as a considerable advantage in a lot of businesses.
Goto.com was an online search engine crossed with a directory of categories and industries. When users clicked a particular category or searched for different things, the relevant advertisements were then displayed to, and in return, advertisers were charged per click. Instead of there being a fixed rate, advertisers had to bid against competitors to claim the number 1 spot.
“Direct Traffic Centre”
Following their successful PPC launch, Goto.com made the decision to introduce real-time PPC bidding on specific keywords. With this new feature, advertisers were allowed to adjust their bids in real-time to assist them in getting the number one spot.
Back during this time, spam was more challenging to make out from needed information. Goto.com solved this by making top paid ads most relevant, and spam results would be used down the results page.
When Goto.com first launched its PPC model, Google was rapidly growing and had the financial help they needed to succeed as a mega business. Although they had the empire, google did not yet have its business model. Google needed to come up with a business plan fast to sustain their investments.
Towards the end of the year 2,000, Google was receiving over 18 million searches per day. With
so many searches, the company made a decision to monetize its search with subliminal text adverts on the side of their search results. With so many other search engines running their PPC ads, Google had a lot of companies to compete against. Their new marketing model consists of “AdWords” and launched to the delight of advertisers. Within just a few months, google acquired over 350 advertisers to use their PPC service.
Cypress, TX PPC Management
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Cypress, TX Fun Facts
- Cypress is ranked #50 in the list of the 100 highest-income areas in the U.S.
- The town is named after the 49-mile-long Cypress Creek.
- Various Atakapan Indian tribes once inhabited the area, but they quickly died out when white settlers moved into the area.
- For more fun facts on Cypress, TX, search here.