What Is Pay-Per-Click Advertising?
PPC is an online advertising model in which advertisers can display ads for their goods or services when users — people searching for things online — enter relevant queries into search engines. Advertisers are only charged when a user actually clicks on their ad, hence the name “pay-per-click.” Due to the nature of keywords and the role they play in paid search, pay-per-click advertising can also be referred to as keyword advertising.
How Does Pay-Per-Click Advertising Work?
In order for ads to appear alongside the results on a search engine (commonly referred to as a Search Engine Results Page, or SERP), advertisers cannot simply pay more to ensure that their ads appear more prominently than their competitor’s ads. Instead, ads are subject the what is known as the Ad Auction, 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.
Pay-Per-Click Advertising: Keywords
As its name implies, 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.
Say, for example, that your business specializes in camping equipment. A user wanting to purchase a new tent, sleeping bag, or portable stove might enter the keyword “camping equipment” into a search engine to find retailers offering these items.
At the moment 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.
Advantages and disadvantages of pay-per-click advertising :
Pay-per-click (PPC) advertising can be a cost effective way to drive traffic to your website. There are a number of benefits and challenges to consider.
Advantages of pay-per-click advertising
The benefits of running PPC advertising include:
- Cost effective — because you only pay when a user actually reaches your website, it can be good value for money. You can choose to spend as much or as little as you like.
- Targeted — you can choose your audience according to demographics like location, language and device
- Measurable — PPC campaigns can be set up to carefully measure effectiveness. You can determine exactly how much your return on investment is.
- Customisable — as you run your campaigns, you can make many small adjustments to improve based on what works best.
- Training resources — there are many (often free) online courses and training materials to help you develop your skills.
- Fast — you will see the impact of your PPC efforts almost immediately. Organic search engine optimisation (SEO) tactics can take months to make a difference.
Disadvantages of pay per click advertising
Some of the challenges of PPC advertising include:
- Time investment — you can’t just set up your PPC campaigns and leave them. You need to invest time into optimising and improving to get the best results.
- Skills required — it can take some practise to set up effective campaigns. Many businesses choose to use a specialist agency.
- Costs can quickly add up — if you aren’t monitoring and optimising your campaigns to make sure you get a return on investment, money could be wasted. You will need to allocate budget for PPC campaigns, unlike SEO tactics where the investment is time and skills.
- Clicks and visits don’t always lead to sales. You will need to convince user to ‘convert’ once they reach your website.
Here’s a small video about what is PPC and how it works ?
Original article published here