What Is PPC? Basic of pay-per-click marketing

PPC stands for pay-per-click, a model of internet marketing in which advertisers pay a fee each time one of their ads is clicked. Essentially, it’s a way of buying leads to your site, rather than attempting to “earn” those leads organically.

Google adwords is is one of the most popular forms of PPC. AdWords operates on a pay-per-click model, in which users bid on keywords and pay for each click on their advertisements.

It allows advertisers to bid for ad placement in a google search engine’s sponsored links when someone searches on a keyword that is set in campaign. Keywords need to be related to business that you/your client offering on targeted website. Otherwise you will spend money without any results.

Example:

Real estate website (London,Uk) – keyword related will be something like “house for sale london”.

Position of ads and their appearance are determined by calculating combination of factors, including the quality and relevance of their keywords and ad campaigns, as well as the size of their keyword bids.

More specifically, who gets to appear on the page is based on and advertiser’s Ad Rank, a metric calculated by multiplying two key factors CPC Bid (Cost Per Click – the highest amount an advertiser is willing to spend) and Quality Score (a value that takes into account your CTR – click-through rate, relevance, and landing page quality).

Every time our ad is clicked, sending a visitor to our website, we have to pay the search engine a small fee. When PPC is working correctly, the fee is trivial, because the visit is worth more than what you pay for it. In other words, if we pay £1 for a click, but the click results in a £100 sale, then we’ve made a good profit.

Conducting PPC marketing through AdWords is particularly valuable because, as the most popular search engine, Google gets massive amounts of traffic and therefore delivers the most impressions and clicks to your ads.