What is Pay-Per-Click Advertising?

PPC is an online advertising model that charges advertisers a fee each time a user clicks on one of their online ads. No clicks = no fees.

There are different types of PPC ads, but one of the most common types is the paid search ad. These ads appear when people search for things online using a search engine like Google – especially when they are searching for something to buy. This could be anything from a mobile search of “pizza near me” to “Villas in Dubai” All of these search’s trigger pay-per-click ads.

Other forms of PPC advertising include display advertising (typically, serving banner ads) and remarketing.

How Does Pay-Per-Click Advertising Work?

In order for ads to appear alongside the results on a search engine, advertisers cannot simply pay more to ensure that their ads appear more prominent than their competitor’s ads. Instead, ads are subject to what is known as the Ad Auction. It is an entirely automated process that Google and other major search engines use to determine the relevance and validity of advertisements that appear on their SERPs.

How Keywords Work in Pay-Per-Click Advertising?

As the name suggests, the Ad Auction is a bidding system. This means that advertisers must bid on the terms they want to “trigger,” or display, their ads. These terms are known as keywords.

As an example a user looking to buy a new football, football boots, or sports socks might enter the keyword “football kit” into a search engine to find retailers offering these items. The user submits their search query, the search engine performs the complex algorithmic calculations that the Ad Auction is based upon. This determines which ads are displayed, in which order, and by which advertiser.

Since you will be charged for each click on your ads, it’s crucial to only bid on keywords that are relevant to your business, to be sure to get ROI from your ad spend. A keyword tool can help you find the right keywords to bid on that are both likely to drive sales or conversions, and are not too expensive.

Conclusion

Although the basics of pay-per-click advertising are simple, managing a successful paid search account can be anything but. Furthermore, many advertisers simply cannot devote the time and effort required to stay abreast of developments to Google AdWords and Bing Ads. Many are missing valuable opportunities to grow their business through PPC.