Also known as a bid-for-placement or CPC search engine, it allows you to "buy" a position in search results seen by millions of visitors a month. To buy a position, you bid a certain number of cents per click for a keyword.
For example, if you were a laptop shop, you may want to bid on the keyword "buy laptop" Let's say that there are currently 3 other advertisers bidding on this keyword:
Mary's Laptop Shop - Cost to Advertiser: $.05 Joe's Laptop Shop - Cost to Advertiser: $.03 Sally's Laptop Shop - Cost to Advertiser: $.02
If you bid one cent per click (the minimum), you would be in position # 4, just below Sally's Laptop Shop. If you bid 4 cents, you would be in position # 2, just above Joe's. If you bid 6 cents, you would be in position #1 and receive the most traffic. The "cost to advertiser", also known as the bid price, is how much that advertiser is charged when a visitor goes to their site. Therefore, in the example above, Mary is paying 5 cents per click to be in the # 1 position. If Barry does a search on "buy laptop" and clicks on Mary's search listing, Mary's account is debited 5 cents. When Mary's account runs out of funds, Mary's search listing is removed automatically and Joe's search listing would move up to position # 1.
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