What is Pay Per Click and How Does it Work?
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(Last Updated On: October 9, 2018)

What is pay per click (PPC)? It is an internet advertising method utilized on websites in which advertisers pay their host only when their ad is clicked on. With search engines (i.e. Google) advertisers typically bid on keyword phrases relevant to their target market. These keywords can be phrases, or a combination of words advertisers think their prospective customers and visitors would type into a search engine. At that point, a bid request is required- that is the sum of money they are willing to pay for each time their ad is clicked on whatever search engine they are utilizing.

When a prospective customer or visitor inputs the key words they have chosen, their ad appears in the search results as a ‘sponsored link’. When a person clicks on their ad to get to their site, they then pay the bid. The more people that click the ad, the more they are paying, but obviously they are then getting more traffic to your page and in theory, more of a revenue stream for their business (dependent on the original bid of course!).

Long story short, the amount of money that an advertiser pays per click is considered their bid. The sum of that bid then will determine the ranking of their ad among the other links competing in the pay per click. The higher the bid, the better positioning their ad will receive on the search list. BUT, if that ad doesn’t hit the number of specified clicks needed, it will be forcibly removed (well, not forcibly, lol, but it will be removed) by the sites administrators.

Now, what might be the best thing to do for beginners is to start out with a lower bid. I say this because one really has no idea know how many clicks he or she is going to get in any one day, and the last thing someone might want is have huge sums to pay for just one day and not have budgeted for it. It’s always easier to increase your bid if their keywords appear at the end of the list and they do not have enough clicks.

For these reasons it is sometimes best to consider consulting with a specialist in the advertising field or by searching through the ads of competing sites or products and see which keywords are the most searched, and then choose to use the same keywords. There are also keyword suggestion tools as sites like Google and Yahoo can help you locate the best keywords but which does not guarantee that your ad will be a success. The decision on keywords is absolutely critical for the success of any pay per click advertising campaign.

For an ad to be successful, the important thing is to really hit on keywords that one thinks others might use when they are trying to find whatever particular product or service a company or individual is offering. Thinking simple might be the best strategy. If the product is the lowest cost one in the market, starting out the keyword phrase with, “Cheap (insert product here)” will definitely warrant more hits than “Nice (insert product here)”. Selecting the keywords can be more difficult than I making it sound since the search engine can be restrictive, but it is something that one will get better with as time goes on.

In terms of successfully advertising products and sites, pay per click is a very good method since most people looking for things on-line use search engines. In order to be the most successful and garner the best results, one needs to be sure to use the most utilized search engines and bid the correct sum of money for their ad. As time goes on, a person’s pay per click strategies will adjust as their site gains popularity and your cash flow increases. Now, if a person’s ad does not see them capturing the amount of visitors they want, adjust the ad and consult with someone who has a specialty in this area.

What is Pay Per Click and How Does it Work?

What is Pay Per Click and How Does it Work?