There are many ways to encourage consumers to part with hard earned cash and even more books from authors claiming that they have found the magic formula that can bag the reader millions. The truth is that marketing, advertising and consumer spending is a constantly changing platform that is affected by many factors. Public opinion, economics, politics and peer pressure all combine to create a fine line of supply and demand. When spending was restricted solely to the high street, various senses were seduced with subtle sales ploys, but now a growing number are shopping online, a different tack is needed. We take a look at Pay Per Click advertising and how it is encouraging consumer spending.

Pay Per Click advertising is often used by companies to target a specific audience for a specific product. The attractive aspect of this method is that the company only pays for the service if potential customers click on the advert. The chances of this happening rely on the skills of the person writing the advert and choosing when to run it. Pay Per Click sometimes works on a bidding system whereby a search engine provider sells time slots for certain high search words or phrases.

The more competitive the search term, the more expensive the word or words may be to bid on. Obviously the value of a sale related to the cost per click of the chosen key term is a vital sum to figure out. Ideally, for every person that clicks on an advert, you want them to spend considerably more than the advert cost to place in the first place. Pay Per Click is an ideal way to raise awareness of a particular brand and to increase site traffic.

One of the most positive aspects about using a Pay Per Click campaign as a marketing tool is the response and reaction of the consumer. When someone types in a search term for a product, or service that matches that of the company, the listing will show immediately. Because these adverts are tailored to meet that particular search, the consumer will recognise it as totally relevant, and therefore click on the advert.

Of course, to ensure that an individual will make a purchase or request a service relies on the relevancy of the advert. For a Pay Per Click campaign to work effectively, the right search terms for the company need to be targeted at the times when those potential customers are likely to be looking for them. If the campaign doesn't attract any attention from consumers, then no money is lost, and another more successful campaign can be drawn up that has the potential to boost profits.

Dom Donaldson is a marketing expert. Find out more about Pay Per Click campaigns and how you can target potential customers to boost profits at High Position.

Tags: advertising, internet marketing, ppc, consumer spending, pay per click