PPC – or pay-per-click – is an advertising model in which the advertisers pay a fee to the host of the chosen advertisement platform every time someone clicks on one of their ads.
PPC is a popular form of digital advertising used by businesses to drive targeted traffic to their websites. Here's a simplified explanation of how pay-per-click works:
- The advertiser creates a campaign on a PPC platform such as Google Ads, Microsoft Advertising (formerly Bing Ads), or social media platforms like Facebook Ads or Twitter Ads.
- The advertiser selects keywords or key phrases that are relevant to their business, products, or services.
- The advertiser determines how much they are willing to pay for each click on their ads.
- When a user performs a search, or visits a website that displays ads, the PPC platform's algorithm determines which ads to show based on factors such as keyword relevance, bid amount, and ad quality.
- If a user finds the ad relevant and clicks on it, they are directed to the advertiser's website or landing page.
- The advertiser is charged only when their ad is clicked, hence the name "pay-per-click." The amount charged per click depends on the competition for the keyword and the bid amount.
Some of the benefits of PPC are:
- It is a cost-effective model of advertising;
- You only need to pay for the amount of clicks you get;
- It brings more visibility to the brand and helps the ads to reach the right audience;
- There are many ad formats available;
- It improves CTR and conversion rates.
While PPC can provide marketers with instant traffic and visibility, it's crucial to remember that the success of a campaign depends on a number of variables, including keyword selection, ad quality, landing page experience, and continuing optimization efforts.