I use Google AdWords and Yahoo Search Marketing, which are both companies’ respective names for the same service on each of their sites.
Both explicitly state that ads don’t help your search rankings, ie. Google isn’t spidering itself and seeing ads on its site and thinking “oh, hey, the biggest site on the internet is linking to this little store! Let’s add tons of PageRank!” Ditto for content links on other sites – they’re smart enough to ignore them (including competitors’ paid links).
But I know they can indirectly help with rankings because, especially if you’re just starting out (like I am), they’re an easy way to get clicks and some of those people clicking might then link to your store on their own sites if they like what they see. And that’s what gets you search ranking.
The ads are so cheap and pretty effective that I don’t think there’s a better way for a small, newish store that doesn’t have a lot of PageRank to market itself.
guys, what text link ads do is connect you to other websites/blog publishers and lets u place text ads on their homepage/other pages.
If the anchor text is good and website you are placing text ad on has relevancy to your site, with a good PR, it boosts your site’s ranking. Only thing is prices for PR3 websites start from like $15-20 month. Can get very expensive.
Google explicitly forbids paid links from passing PageRank, and any paid link not identified as advertising can cause negative repercussions to your site up to and including being banned from Google. See here: http://www.google.com/support/webmasters/bin/answer.py?hl=en&;answer=66736
If you’re talking about text link ads identified as ads, then you are talking about Google Adwords and Yahoo Search Marketing, as I mentioned earlier. Those pass no PR. Neither do any other legitimate text ads, although why you’d bother with any company other than Google or Yahoo I don’t know, because between them those sites have about 95% of the paid link market (both on search and on content sites).