Online advertisement can be an effective way to buy traffic at cheap rate (through placing advertisements) and sell it high (through ads). Google AdWords and Yahoo Overture are the most effective to drive traffic to any site. Both allow display of your ads on top of their search results. You can choose particular keywords for targeting visitors to your website. You have to pay certain price for per click.
1. Yahoo Overture: Yahoo Overture is the way of sponsored search which allows appearance of you ads on Yahoo and number of other search engines like Metacrawler, Dogpile, Excite, iVillage etc.
Choice of proper keyword is very important to drive traffic. Otherwise you will get non-targeted visitor who are not interested in your contents and it leads to lower profit. The frequency of the appearance of advertisements depends on how much advertiser is willing to pay for that particular keyword. However same keywords can be targeted for different prices. Certain keywords have a wide range of bid prices. If your site has content related to such keywords, you can use it to target new visitors. Distribution of prices for particular keyword varies with time.
Overture provides a way to see the current values of particular keywords. It shows how much company is paying for per click on that keyword. Whatever price you get from the advertiser when a visitor clicks on those ads, you will receive only a part of the part. There is always share of the Google and Yahoo, depending on whose network you are using. They never disclose how much their share is. However on average it around 22.5%. Therefore if you offer to pay 10 cents for a click to your site for particular keyword and show ads for $2.0, then you will make $1.45 for every click [(2-(0.10+0.45), here 0.10 is decided by you while 0.45 is Yahoo’s share]. It means that you will make profit of $1.45 for every 10 cents you spend. But this calculation assumes that every visitor is going to click on the ads. It is not the case. Generally only 3-5 % visitors click on the ads. Therefore you may be at lose or profit depending on the frequency of clicks. Bid of 10 cents per click will cost you $10 for every 100 visitors. Suppose only two visitor click on the ads then you will get only $2.9 ($1.45×2) in return. Therefore you should always look for keywords where you bid price while maximum bid price is very high. Otherwise you will be at losing.
2. Google AdWords: Google ads appear on the basis of bids. Your bids should be high enough to compete. You should bid the minimum possible per click to keep your profits high. However if you expect higher returns when a visitor come to your site then you can bid more.
Google keyword tool not only show current top bids on particular keywords but it also show top bids for other similar keywords. It provides a way to bring traffic with a particular keyword and send the outward traffic (via ad) through other related high paying keyword. Except this all other things are similar between Overture and AdWords.
Any network you use for advertisements, the price you pay to get the visitor should not be less than revenue generated from such visitor. To raise the interest of the visitor on those ads you can mention about those keywords (for which advertisements are shown) in your content. As you know the keyword for which ads is displayed you can easily do this. To bring the highest paying ads you have to target particular section of your website which can display those high paying ads. It is required as all sections of your site may not have the proper keywords with high earning potential. Also try to keep the ad unit as small as possible; larger ad unit will display more ads and the difference between their CPC (cost-per-click) may be huge. This may lead to wastage of the click value.