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How Pay-Per-Click Works

By on July 1st, 2011
How Pay-Per-Click Works

How Pay-Per-Click WorksPay-per-click advertising, otherwise known as PPC is one of the most profitable online advertising options to attract serious, highly targeted buyers. But, before embarking on this exciting internet marketing campaign, it is essential to understand first how it works to get the maximum results.

What is pay-per-click advertising?

It is the largest internet advertising method used by internet-based businesses or websites in which advertisers pay only each time a user clicks on their ads. It is the process of placing a small ad on the search results page of search engines for a specific keyword or set of keywords (key phrases) in exchange of a specified payment (PPC bid) when a visitor actually clicks on the ad.

Why pay-per-click?

This model provides online business owners/advertisers with a cost-efficient way to advertise their products, which they can easily control and monitor the performance of their ads as well as their investment. This method allows them to make smart decisions in further intensifying their marketing campaigns to boost sales and improve the over-all conversion process. Traditional models of advertising typically take certain time slots to be aired and published, which is absolutely not the case with PPC. Once, your ad is activated, which generally takes minutes, it immediately begins to circulate and therefore, noticeably increases the traffic of your website in just a matter of minutes. It is now the largest, yet ever evolving part of the online advertising market. The potential huge revenue it generates is the reason behind the rapid growth of major search engines and many business websites today.

Who provides PPC ad space?

At present, a large number of search engines are offering PPC ad space, but the most popular provider is Google whose PPC advertising program is called Adwords. The next biggest providers are Yahoo Search Marketing and Microsoft adCenter. Facebook is also fast emerging as a solid social network PPC platform, which is why Facebook ad management and Google Adwords management is becoming a promising industry today.

How does PPC work?

PPC ads are usually placed on top, bottom part and on the right-hand side of search results making them prominently seen by searchers and thus, are likely clicked first than the organic search results. Search engines generally place a PPC ad (pointing to the advertiser’s landing page or directly to the website) according to its relevance to the search results.

The idea here is to get your ad ranked first in the PPC results to gain more hits, making relevant keywords or keyphrases, a golden factor in the placement of your ads. This is the reason why there is a growing competition on specific keywords in most search engines. This competition is settled by an automated bidding process, where the advertiser bids for the highly converting keywords in order to get a higher ranking. The common rule is that the advertiser that bids the highest amount of money for a specific keyword will get the top rank on the search results, the second-highest bidder will be ranked second and so on. Studies indicate that searchers tend to give attention only to the first three pages of organic search results. Therefore, it is very important to engage the audience at the start of their search.

How to make this exciting advertising strategy work for your own business?

As more and more consumers are searching online for information before they make purchases as well as making online purchases, PPC ads can be your chief tool for sales and conversion. It can significantly increase the amount of visitors to your website if they are placed strategically.  To get the most out of your PPC investment, you need to spend time for close monitoring and measuring its performance in the market to determine which aspect worked and which did not. Testing your keyword’s converting ability, analyzing your ad’s progress and other managing routines need to be done on a consistent basis. They may take an adequate amount of time.

Having a trusted company that will handle your Google Adwords management, Facebook ad management and your PPC ads on other platforms will steer you away from these worries. Thus, giving you the peace of mind and making you more productive as you will have more time to focus on other aspects of your business.

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