What is pay per click advertising? Should I do pay per click advertising? How do I go about doing it? How do I know it works?
If you’ve asked yourself (or Google) any of these questions, we are going to cover these questions in this three part guide on Pay Per Click Advertising in a way that’s simple and easy to understand.
What is PPC (Pay Per Click Advertising)?
PPC is a form of advertising online through websites where an ad is put up and the advertiser will need to pay the owner of the site when the ad is clicked.
However, PPC has become analogous to advertising on search engines such as Google and Bing.
How Does PPC Work?
In its essence pay per click is a very simple model.
- You pick the keywords that will trigger your ads to show when people search for them
- You write ads that you want to be shown
- When someone clicks on your ad, they are sent to your website. Therefore you pay for the click.
However, it does get more complicated, not everyone can show up at the top of the page and Google doesn’t want companies to “buy” positions on the web page. So they have devised a method to determine where the ads are positioned called auction time bidding.
Every time a keyword that triggers ads is typed into Google, an auction is run to determine where ads bidding on that keyword are going to show up.
In order to make this as competitive as possible, this auction is not based purely on monetary value.
Although nobody knows the exact algorithm that positions the ads, Google has come out and said there are several main factors that advertisers can aim to improve on in order to rank higher on the page. (We will get into more details in this series’ next article)
Why does PPC work?
Pay per click works, or we should say it can work for everyone. Given the proper setup, implementation and optimisation, pay per click advertising can work for every business.
This is proven by all the advertisers that use it, PPC allows small companies to compete with public listed companies or large conglomerates. With more and more people using Google and other search engines, it means even very specific and niche products or services can reach their audience online.
The point of differentiation between PPC and traditional means of advertising lies in two main advantages.
- Relevance: You get to decide exactly who your audience is by what they are searching for online. You also compete with other advertisers based on the relevance of your ads, the page you send them to and keywords.
- Pay Per Click model: You only pay when someone clicks on your ad! Imagine having a billboard where you only pay when a customer that has seen your ad walks into your store.
Part two will cover the most commonly used metrics in Pay Per Click and what they mean, as well as more in depth explanation of auction time bidding and what factors need to be considered.
Written By Jeffrey Chang