Pay-Per-Click Marketing: What is PPC & How Does It Work?

Pay-Per-Click - ASH KNOWS

Last Updated on April 30, 2019

Have you ever heard about Pay-Per-Click advertising? Do you want to know how it works? Here’s all you need to learn about PPC:

What is Pay-Per-Click (PPC) Advertising?

Pay-Per-Click (PPC), also known as Cost-Per-Click (CPC), is an internet advertising method of getting targeted traffic to your website by paying a certain price to the publisher each time your ad is clicked. It is simply a way of buying visits to your site instead of earning them organically.

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Types of Pay Per Click (PPC) Advertising

There are several different types of PPC Advertising such as:

  1. Paid Search Engine Advertising
  2. Display Advertising
  3. Social Media Advertising
  4. Affiliate Marketing
  5. Targeted Content Sites

Search Engine Advertising is the most popular form of PPC.

There are basically two ways of marketing your product, service, or brand through search engines:

  1. SEO (Unpaid, Organic Traffic)
  2. PPC (Paid, Inorganic Traffic)

PPC Advertising - ASH KNOWS

In this article, we’ll discuss PCC marketing through search engines.

How Does PPC Advertising Work?

Google AdWords, now known as Google Ads, is the widely used PPC platform that operates on the Pay-Per-Click model. You can bid for ad placement in Google’s sponsored links on the keywords that are related to your product or service. Whenever a user clicks on your ad, you pay for that click from your specified budget. Once the budget gets depleted, your ad is no longer shown to the users.

Searching the right keywords for your PPC campaign is a highly important and time-consuming task. Your entire marketing campaign revolves around the keywords you choose for displaying the ads. If you want to grow as a successful Google advertiser, you continuously need to improve and grow your PPC keyword list using a variety of tools.

PPC Advertising -ASH KNOWS

How Does Google Determine the Place of an Ad?

Every time a user initiates a search, Google looks into the sea of bidding advertisers and choose some winners to show in the ad space on search engine result pages. (SERPs). The winners are chosen based on different factors that include the relevancy and quality of keywords as well as ad text, and the size of keyword bids.

More specifically, Ad Rank is the metric that Google uses to decide the rank of an advertisement and its position on search engine result pages (SERPs). It is calculated by multiplying Cost-Per-Click (the max amount you set for your keyword) to Quality Score (determined by taking into account the click-through rate, relevance of keywords & ad text, and quality of landing page). Remember, the overall Quality Score affects the actual Cost-Per-Click (CPC).

This advertising system actually allows advertisers to reach their potential customers within a cost that fits their budget.PPC - Ad Rank - ASH KNOWS

Advantages of Pay-Per-Click Marketing

PPC advertising has become immensely popular for the past few years because of its numerous advantages. Let’s have a look at a few of them below:

1. Cost-Effective

This advertising model is quite cost-effective because you only pay when a user actually lands on your website. You decide your budget and how much you want to spend on advertising your products or services.

2. Measurable

You can measure the effectiveness of your advertising campaign at every point and calculate return on investment easily.

3. Targeted Audience

PPC campaigns provide you the flexibility of choosing your audience according to your desired demographics like location, age, language, or device.

4. Customizable

You can make small improvements or adjustments to your PPC advertising campaign based on what works best for your business.

5. Fast Results

Once your ad campaign is active, you’ll start seeing its impact in a short span of time. On the other hand, getting organic traffic through SEO may take months to actually make a difference.

So, this is all about the basics of PPC. Do give your feedback and let me know in comments if you have any query. 🙂

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