Pay-Per-Click Advertising: What Is PPC?
One of the fastest ways to draw more potential customers to your website is Pay Per Click (PPC) advertising. Using tools such as Google AdWords, Yahoo Search Marketing, and others, business owners can display ads in the sponsored results section of search results pages and pay a fee each time someone clicks through from the ad to their site.
As Pay per click’s name suggests, you only pay for actual click through to your website. If you have ever noticed the advertisements that appear alongside search results on Google and other search engines, you are already familiar with pay-per-click, or PPC advertising.
What Is Pay-Per-Click Advertising?
PPC is an online advertising model in which advertisers can display ads for their goods or services when users – people searching for things online – enter relevant queries into search engines.
Advertisers are only charged when a user actually clicks on their ad, hence the name “pay-per-click”. Due to the nature of keywords and the role they play in paid search, pay-per-click advertising can also be referred to as keyword advertising.
How Does Pay-Per-Click Advertising Work?
In order for ads to appear alongside the results on a search engine (commonly referred to as a Search Engine Results Page, or SERP), advertisers cannot simply pay more to ensure that their ads appear more prominently than their competitor’s ads.
Instead, ads are subject what is known as the Ad Auction, an entirely automated process that Google and other major search engines use to determine the relevance and validity of advertisements that appear on their SERPs.
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Pay-Per-Click Advertising: Keywords
As its name implies, the Ad Auction is a bidding system. This means that advertisers must bid on the terms they want to “trigger,” or display, their ads. These terms are known as keywords.
Say, for example, that your business specializes in camping equipment. A user wanting to purchase a Google Adsense books might enter the keyword “Google Adsense books” into a search engine to find retailers offering these items.
At the moment the user submits their search query, the search engine performs the complex algorithmic calculations that the Ad Auction is based upon. This determines which ads are displayed, in which order, and by which advertiser.
Failing to split-test your ad text.
To produce the most effective results, avoid running PPC ads without testing them first. You can split your ads by creating multiple versions of the ad’s text for each of your PPC ad groups. That way, you can determine which specific wording leads to the most click through and on-site conversions.
Nearly all PPC engines allow you to split-test but ensure that your ad variations will be displayed at random so they generate meaningful data.
Some PPC platforms use predictive algorithms to display the ad variation that’s most likely to be successful, but this diminishes the integrity of your split-test data. You can find instructions on how to ensure that your ad versions are displayed randomly in your PPC engine’s help section.
Google AdWords: Actionable Insight into Your Pay-Per-Click Advertising Campaigns
Although the basics of pay-per-click advertising are simple, managing a successful paid search account can be anything but. Many advertisers simply cannot devote the time and effort required to stay abreast of developments to Google AdWords and Bing Ads, and many are missing valuable opportunities to grow their business through PPC.
Google AdWords can help.
Google AdWords’s tools can help you every step of the way, whether you’re an experienced PPC advertiser or are new to the world of paid search.
Google AdWords’s free search marketing tools connect securely to your Google AdWords and Bing Ads accounts, enabling you to see, at a glance, a wealth of data from your campaigns that would be otherwise difficult to access in one centralized location.
Based on this data, you can take steps to optimize your AdWords and Bing Ads campaigns to increase conversions, maximize return on investment, and grow your business.
We can provide insight into actionable data, including:
Keywords, including top-performing search terms
Negative keywords that can save you money
Ad performance information
Bid optimization suggestions
Master Pay Per Click Advertising with Google AdWords Advisor
Google AdWords Advisor takes a headache out of pay-per-click advertising. With the 20-Minute PPC Work Week system, you can discover new opportunities, optimize your account, and adjust your ad spend to align with your paid search goals.
Google AdWords Advisor’s automated alerts will notify you of areas in which immediate action can be taken to yield better results and make suggestions on which areas of your account can be improved. Google AdWords Advisor will allow you to:
Discover new keywords
Create logically organized ad groups
Identify negative keywords that could be wasting your ad budget
Improve your ad copy
Create compelling, relevant landing pages
Google AdWords can help you achieve your pay-per-click advertising goals.
Hopefully, if you arrived at this blog wondering, “How does PPC work?” you are now leaving with some answers!
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