What is pay per click advertising (PPC)?
Just like some other online marketing terms, Pay Per Click has many pseudonyms; search engine advertising, paid search engine marketing, SEA, PPC –but they all mean the same thing. This is a type of online marketing model available on most search engines such as Yahoo, Bing and Google where an advertiser is required to pay whenever their ads are clicked and when users visit their websites. These PPC ads usually appear above and alongside organic search results on search engine results pages. Most Pay Per Click campaign platforms are based on bidding per keyword models. An advertiser ideally decides on keyword phrases to trigger their ads and selects a maximum price to be paid once a visitor clicks their ads as soon as they are triggered by the selected keywords.
A large number of advertisers often bid on similar keywords. This calls for the use of a bidding model to help determine the position to display any particular advert. Google, being the largest PPC advertising channel, displays a total of 11 ads in a single page. The most popular arrangement of ads is the one that displays three ads above organic search results with 8 other ads showing on the right hand side. Position 1 is usually at the very top while position 11 comes at the bottom on the right hand side.
For instance, if you describe yourself as a “London based mechanic”, you can have your ad displayed when a visitor searches for “mechanic London”. This entire advertising model is influenced by budget which means once your daily or monthly budget is spent, your ad automatically stops appearing thus preventing any extra unexpected costs. It is advisable to go for click budgets but ultimately the amount you set aside for any given campaign is entirely your decision.
PPC is usually determined by the following factors:
- The number of competitors bidding on the same keyword
- The position of PPC ads in the search results (from 1 to 11)
- The quality of the ads and their relevance to the keywords
- The overall quality of the website that visitors will finally land on
- The relevance of the websites that visitors will end up on to the ad and the keyword
- The Click Through Rate (CTR) of the ad i.e. how many users click the ad compared to the number of times the ad is displayed
Ideally top positions in paid results are most expensive. However, factors such as those listed above imply that the highest bidder will not always take the top positions. PPC advertising is available to anybody; with a landing page or a website and is slowly becoming today’s most targeted digital advertising channel. Also, PPC advertising lets you target visitors that actively search for keywords related to your business, product or service. Importantly, you only pay when a user visits your website. Find out how easily you can squeeze the most value out of your current PPC budget with the help of PPC Experts Co.