Among the tools of Internet marketing, pay-per-click advertising is perhaps the most straightforward way for a Web site owner to earn from his site. Every time a visitor clicks on the pay-per-click ad, the web site owner earns a little something. It's as simple as that.

That's also the main reason why many advertisers would rather have a pay-per-click ad than a banner ad in their Internet marketing campaigns, Banner ads, also known as Web banners, are those flashing, rectangular boxed ads that are usually positioned at the top of leading Web sites. In pay-per-click advertising, the advertiser pays the Web site which carries the ad only when someone clicks on it. In banner advertising, the advertiser pays the Web site which carries the ad regardless of whether anyone clicks on it or not. This makes pay-per-click advertising the more results-oriented Internet marketing technique because it delivers guaranteed results.

Pay-per-click search engines are another effective Internet marketing tool. Advertisers bid on keywords that Internet users are likely to use when doing a Web search for their products or services. The search engine will insert the advertiser’s ad at the top of search engine results every time someone does a search for the purchased keywords. In other words, the search engine will present the ads as "suggested sites" to those doing the keyword search.

The ads are placed atop the natural search engine listings and arranged according to size of the advertisers' bids, with those with the highest bids occupying the most visible positions on the page. Like pay-per-click advertising, advertisers only pay the search engine when someone clicks on their ads.

To illustrate, let's say you're a manufacturer of letter envelopes. You then bid on the words "letter envelopes" because you feel that's what a consumer is likely to type when doing a Web search for your product. When the search engine shows it's natural search listings, your ad will appear on top of these search results with the label "sponsored ads" or "sponsored links." When a consumer clicks on your ad, he is brought to your Web site. This is another Internet marketing technique that delivers quantifiable results.

The amount of the bid determines the placement of the advertiser's ad in the search engine results. Those who bid the highest will have their ad positioned first on the list of results. The advertiser with the second highest bid is listed second and so on. After all the advertisers' ads have been displayed, the natural search results follow.

As an Internet marketing tool, pay-per-click search engines are a cost-effective option. The cost of a pay-per-click ad would depend on the popularity of the Web site or search engine that will carry the ad. Prices will generally costs between US$0.01 to a US$0.50 per click. In some cases where specialized products are involved, say, unsecured natural loans, prices can be as high as £18+ per click.

The best search engines for Internet marketing of this nature are Google AdWords and, Yahoo! Search Marketing.