I believe pay per click advertising is a bit foreign to the majority of small business owners out there. However it's such a fast growing medium that it definitely needs to be a bit more transparent for the crowd.
Take a look at Adotas's latest article on this here. They speak of negotiating click rates, tracking effectiveness, and performance based testing. All great stuff and including a regular Internet advertising program into your marketing budget is definitely the way to go considering that 55% of consumers are now looking online.
But, although worthwhile advice, I still think the process is rather time consuming and costly. It just doesn't resonate to me how the busy lifestyle of a business owner has the time to put into this.
Of course, hence our work at MerchantCircle; we do all the complicated stuff here for you. You create the ads, we initiate the buys, we send you tracking reports, and you can tweak your campaigns based on performance. Also, we incorporate all the major ad networks and more for about a quarter of what it would cost to get you in the Yellow Pages.
Sweet deal if you ask me :)