What Is Pay Per Click Advertisement And How It Works

What is PPC? and what is PPC marketing? Are you curious about PPC marketing? In this article we will explain and describe what PPC is and how it works for your advertisements. 

So do you want to know more about it? Let’s check this article out.

What PPC Means?

PPC stands for Pay-per-click which is an online advertising model in which an advert pays a publisher every time an advertisement link is clicked on. In other words it means that advertisers need to pay a fee each time their ads are clicked by somebody. 

This pay-per-click model is offered by search engines and social media. The most popular platforms for pay-per-click are Google Ads, Twitter Ads and Facebook Ads.

Read Also: Learn How to Increase Your Website Traffic Fast and Cheap

What Are The Types Of PPC?

PPC or Pay-per-click works based on keywords that user input in the search engine. An online ads or sponsored link will appear when users input a keyword that is related to the products or services in the advertisements. Each of the types of PPC has its own benefits.

Therefore, a company should do research and analyze the keywords to be applicable to their products or service advertisements. 

The PPC model is considered to be beneficial for both publishers and advertisers. This PPC will advantage the advertiser because it gives the opportunity to advertise products or services to a specific audience who is searching related content with the advertisement. 

For publishers, this PPC model provides a primary revenue stream. Revenue stream is a strategy to earn money from the sale of goods or the provision of service from various sources. 

For example, Google and Facebook which earn money from the service they provide to their customers. The online company usually monetizes their free products using online advertising which is a PPC model. 

Here are the types of PPC:

Flat Rate Model

In this flat rate model, the advertiser pays a publisher a fixed rate fee per each click. Usually there is a different rate for each advertisement on a website. Publishers are generally going to negotiate the price. A publisher usually lowers the fixed price for advertisers who want to advertise a long term or a high value contract.

Bid Based Model

Different from the flat rate model, in the bid based model, each advertiser makes a bid with a maximum amount of money they want to pay for the advertising spot. After that, the publisher will undertake an auction using automated tools. 

The auction runs whenever a visitor triggers the advertisement’s spot. The rank of this auction is considered to be the amount of money and the quality of content that is offered by the advertiser.

How Paid Search Work?

Are you curious on how does pay-per-click work? This PPC works when there is a relevant keyword in the search engine. Every time there is an advertisement spot on a search engine result page (SERP), an auction takes place for the keyword automatically. These auctions are the gears to move the PPC. It starts when someone does some searching for something on a search engine.

There are two factors that will determine whose advertisement will appear in the top position which is bid amount and the quality of the advertisement. The higher bid amount and quality an advertisement has, the big possibilities that your advertisement will appear on the search engine result page. 

To get involved in these auctions, advertisers use accounts on platforms like Google Ads to set up their ads and determine where and when they would like those advertisements to appear.

Read Also: On-page SEO: A Better and Effective Way for Your Website

PPC Keyword

Keywords are important for PPC ads which is one of PPC strategy. Keyword is what marketers use to target  the users by matching their search queries. In a simple way, we can say that keywords are the important key to the appearance of your ads. A good PPC Keyword should be :

• Relevant, this means that the keywords you bid on should be closely related to the offerings you sell.
• Exhaustive, your keyword research should include the long tail of search not only the popular and most frequently searched terms. Long tail keywords are more specific and less common but they add up to for the majority of search driven traffic.
• Expansive, use an expansive keyword to expand your campaigns and create an environment of your PPC ads.

Budget And Bids

Budget and bids become the most important part for your ads. Before advertising your ads, advertisers need to decide how much they want to spend for the given keyword. 

This is done by using budgets at a campaign level and bids at the ad group or keyword level. Budget should be set according to the strategy while bids are a more precise way of controlling your spend.

Ad Rank

The appearance of your ads depends on several factors the search engine is looking at. Search engines have their own ways of factoring and determining which ad rank. The factors that search engines might consider are the bid amount, ad relevance and quality, the context of the search and the format impact.

Read Also: SEO Keywords Tools for Better and Quick Results Malaysia 

Targeting

Beside creating a keyword, there are other targeting options available to optimize your ads campaigns such as device targeting, location targeting, day and time targeting and demographic targeting.

These are valuable because it gives a different variation of ad copy which can target the users who use mobile phones, target the users in other locations and at different times. This targeting will make your ads perform better than another.

Conversion

In this PPC is not only about how to get the click but to obtain a conversion. The common examples of conversion are purchasing a service, placing a phone call, signing up for a newsletter and many more. Online platforms like Google ads can track conversions using a snippet of code that is placed into the source code to collect the conversion data.

Conclusion 

PPC or Pay-per-click is an online advertising model in which an advert pays the PPC company every time an advertisement link is clicked on. This is how the publisher makes money with pay per click. PPC works based on keywords that user input in the search engine.

Some people asked, Are these PPC for dummies? The answer is no. This PPC marketing for those who want to advertise their business using a link which is connected to the search engine.

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