What Is Pay-Per-Click Advertising

Advertising online could be very different from traditional advertising as it takes many forms which is seen virtually everywhere around the web – text ads on search results, video ads on news sites, image ads on blogs, google ads in between paragraphs, to mention but a few. As different advertisements are placed on different platforms, one unique thing about online advertisement is that we can target our audience and pay based on the devices they are using, the words that they search for, the city where they are located, the language they speak or even the websites they visit.

In online advertising, the audience is actively seeking the products and services that an advertiser has to sell. A huge benefit of advertising online is that one is able to save cost with respect to the various kinds of pricing models available:

  • CPM – Cost Per Mille (thousand impressions) popularly called cost per impression because an advertiser pays for every one thousand impressions whenever the ad is served whether or not anyone saw it.
  • CPC – Cost Per Click is paying every time a user clicks on an ad.

What is pay-per-click advertising?

Pay-per-click (PPC) advertising is also known as CPC advertising and under the umbrella of paid search because most search ads are sold on a CPC/PPC pricing model. Just as the name implies pay-per-click is an online advertising model where an advertiser pays a fee each time their ad is clicked. Advertising on search engines is a common platform where PPC is carried out. Many people use search engines on a daily basis to look for products and services and just like search engine optimization (seo), ppc ads also appear on search engine result pages when someone searches a keyword that is related to the product or service offered.

Unlike search engine optimization where you earn visits to your website organically i.e. every click to your website is free. PPC is a way of buying visits or gaining traffic to your site by bidding for ad placements on search engines because once the person clicks on the ad, you pay for that click and they are automatically directed to the website associated with the ad.

In pay-per-click advertising, you have complete control over your advertising budget and what you get back in return. You pay for an ad anytime the user actively engages with the ad. You are only being charged because you are showing advert to only those who want to be advertised to. CPC is used basically when you are interested in driving a direct response to your marketing goals. Three important things you should know is that pay-per-click advertising is:

  • targeted – you choose to whom, what location, what language, what mobile device your ad should be served.
  • measurable – you can measure the success of your campaign and know if your ad is performing well and if it isn’t optimize it. With Google Analytics, you can even track more metrics. Learn how to add google analytics to your website.
  • active – because people are constantly and actively searching for the product or services you are offering.

In our upcoming post, we would look at some of the terms here that are not well explained and also aim to build our PPC vocabulary.

Leave a Reply

Your email address will not be published. Required fields are marked *