PPC (Pay-Per-Click Advertising) Definition
PPC Pay-Per-Click Advertising the online advertising model in which advertisers pay each time a user clicks on one of their online ads. And there are different types of PPC ads, but one of the most common types the paid search ad.
And these ads appear when people search for things online using a search engine like Google – especially when they performing commercial searches, meaning that they’re looking for something to buy.
It’s anything from the mobile search (someone it remains looking for “pizza near me” on the phone) to the local service search.
And someone looking for a dentist or a plumber in their area to someone shopping for a gift (“Mother’s Day flowers”) and the high-end item like enterprise software. All of these searches trigger pay-per-click ads.
In pay-per-click advertising, businesses running ads only charges when the user clicks on their ad, hence the name “pay-per-click.”
And other forms of PPC advertising include display advertising (typically, serving banner ads) and remarketing.
How Does Pay-Per-Click Advertising Works?
- For ads, it appears alongside the search engine results it commonly refers to as the Search Engine Results Page, and SERP).
- And advertisers cannot merely pay extra to ensure that their ads appear more prominently than their competitor’s ads. And instead, ads subject to what recognizes as the Ad Auction, the entirely automated process.
- Also Google and different major search engines use to determine the relevance and validity of advertisements that appear on their SERPs.
How did Keywords Work in Pay-Per-Click Advertising?
- Its name implies the Ad Auction is a bidding system. It means that advertisers must bid on the terms they want to “trigger” and display the ads. These terms are known as keywords.
- It says, for example, that our business specializes in camping equipment. The operators want to purchase the new tent, the sleeping bag.
- And portable stove might enter the keyword “camping equipment” into a search engine to find
retailers are offering these items.
- When the operator submits the search query, the search engine performs the complex algorithmic calculations that the Ad Auction bases upon.
- It determines which ads are displayed, in which order, and by which advertiser. Since we take to pay for each click on our ads, it’s imperative to only bid on keywords relevant to our business.
- So we can sure to get ROI from our ad spend. The keyword tool helps us find the right keywords to bid on that are both likely to drive sales or conversions and not prohibitively expensive.