Pay-per-click (PPC) is an internet marketing model in which advertisers are charged a fee each time one of their ads is clicked. Essentially, it’s a way of purchasing website traffic rather than trying to “earn” it organically.
One of the most common types of PPC is search engine advertising. When someone searches for a keyword related to their business offering, it allows advertisers to bid for ad placement in a search engine’s sponsored links. If we bid on the keyword “PPC software,” for example, our ad might appear at the very top of the Google results page.
We must pay a small fee to the search engine every time our ad is clicked, bringing a visitor to our website. When PPC is working properly, the fee is insignificant because the visit is worth more than the amount you pay. In other words, if we pay $3 for a click that results in a $300 sale, we’ve profited handsomely.
A lot goes into creating a successful PPC campaign, from keyword research and selection to organizing those keywords into well-organized campaigns and ad groups to creating conversion-optimized PPC landing pages. Advertisers who can create relevant, intelligently targeted pay-per-click campaigns are rewarded by search engines, which charge them less for ad clicks. Google charges you less per click if your ads and landing pages are useful and satisfying to users, resulting in higher profits for your company. If you want to start using PPC, you must first learn how to do it correctly.
Both advertisers and publishers are said to benefit from the PPC model. The model benefits advertisers because it allows them to advertise products or services to a specific audience that is actively looking for related content. Furthermore, because the value of each visit (click) from a potential customer exceeds the cost of the click paid to a publisher, a well-designed PPC advertising campaign allows an advertiser to save a significant amount of money.
Types of PPC
An advertiser pays a publisher a fixed fee for each click in the flat rate pay-per-click model. Publishers typically keep a list of different PPC rates for various areas of their website. It’s worth noting that most publishers are willing to negotiate on price. If an advertiser offers a long-term or high-value contract, a publisher is very likely to lower the fixed price.
In the bid-based model, each advertiser submits a bid for an ad spot with the maximum amount of money they are willing to pay. Then, using automated tools, a publisher conducts an auction.