What Is PPC And How Does It Work?
Pay Per Click Advertising (PPC) is an advertising model whereby you only pay when your ad is clicked. Advertisers bid on keyword searches that are relevant to their target market.
The cost per click is the amount that advertisers pay when their ad is clicked on to attract one visitor to their website.
Search engines will display your advert above, below or adjacent to organic search results when matching keywords are entered.
These are called ad links or sponsored links.
Although many PPC advertisers exist, Google Adwords, Yahoo Search Marketing, and Microsoft AdCenter are the largest network operators and all three operate under a bid-based system.
The cost per click depends on the search engine and the level of competition for the particular keyword you would like to bid on.
Where to Begin
The first step in creating a PPC campaign is the bidding process. Basically, this means placing a bid on specific keywords under which an advertisement will appear.
The amount that is bid is dependent on a few factors. Popular keywords often cost more than less popular keywords. The number of visitors the search engine gets is also a factor. As is the amount your competitors are willing to spend.
Advertisers can set a budget before bidding, select a hosting site, like Google, and specific keywords based on their budget.
Because not everyone searches for the same keywords, it’s important that a company doesn’t place all their eggs in one basket and only bid on one popular keyword. They would do well to expand the number of keywords they bid on, in order not to miss out on revenue that could be generated by bidding on less popular keywords also.
Since these less popular keywords cost less, an advertiser can increase visibility on a tight budget by implementing this into the PPC strategy.
The great thing about these campaigns is that you can set a cap on the amount you want to spend and decide on the budget before you get started.
This helps you budget effectively and manage costs, maximising your marketing spend.
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