Pay per click advertising works because:

* By using the bidding system, similar to how an action works,everyone can compete on a level playing field.
* Pay per click is cost efficient.
* Results are measurable.
* It's extremely well targeted.
* Pay per click is the ultimate in direct response.

all the above thougth's of pay per click advertising benefits. This is the one of way of the marketing method that you should be using.

PPC can work handsomely.

This is my experience of using Adwords Reasons to Use Pay Per Click Advertising | Michael Wall - Internet Marketing Belfast

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It can also be expensive. I would rather get there organically which is the most effective place to be anyway.

personally i use it to see which keywords i should be using and then cut down and concentrate more on the organic. If your site isn't good enough for the organic results you will end up paying higher CPCs anyway (because of QS issues).

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It's also good to use PPC while waiting on your organics to rise up through. But PPC without conversion tracking must be a nightmare - not just AdWords conversion tracking but any kind of tracking.

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Good point link8r, I sometimes do this, particularly with some of the more competitive keywords.

I did the same as link8r and find it great end up spending less money (but then i get less traffic to the site).

I find it good to see if there is really any traffic for the keywords - don't trust stats packages.

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Pay per click is one of the most effective and measurable forms of advertising. There in lies the problem, too many people don't measure it properly or have the skills to understand what to measure.

Web Analytics can tell you lots about your visitors, and I would never run any PPC or Banner advertising campaign on the web without tracking it in an Analytics package.

Of course Organic is better as you don't have to spend a dollar once you are there, but as long as you are getting a positive ROI for every keyword you are bidding on PPC is fine.

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That was my point really, 80% of people click on the natural listings - its the most effective place to be.

Therefore you have to measure the ROI between your PPC campaigns and getting your site up organically.

(Personally I do both, so I'm not anti PPC).