Pay Per Click Advertising – A Quantitative Perspective

Today most of our population uses the internet significantly and an advertiser cannot ignore this medium for advertising. One of the famous online advertising forms is the Pay per Click (PPC) advertising. Paid search advertising is commonly much simpler than any other form of advertising. The most striking feature of this type of advertising is total control on the costs. This study tries to analyse the Google PPC advertising function & attempts to provide a reasonable idea on how simple quantitative tools can help in making a wise decision on the allocation of funds to the PPC advertising. Further it tries to estimate the correlation between the average position of the ad shown & the number of clicks by using regression equation. The study concludes that marketer can manage the PPC advertising budgets judiciously.