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August 12, 2013
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August 19, 2013

PPC Advertising Explained

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Pay-Per-Click advertising, or PPC for short, seems to be all the rage nowadays. PPC is everywhere, but what is it? According to Techterms.com, “PPC advertisements generate revenue for Web publishers each time a visitor clicks on an ad… Many search engines also use the pay per click model, showing sponsored results along with other relevant results for searches. PPC is an attractive model for advertisers because they only have to pay for actual traffic generated by their ads.”  Essentially, PPC ads select a keyword or key phrase to target, and pay search engines for their advertisement to appear when that word or phrase is searched (this is why PPC can also be known as keyword advertising).  PPC ads are only beneficial for advertisers if the right keywords are selected.  If advertisers do not choose popular keywords, the purpose of PPC advertisements are useless.

So how does PPC actually work? PPC ads are sold in an auction, and whoever bids the most, gets the highest slot on the search engine.  If an advertiser with the highest bid offers 30 cents on a keyword, every time their PPC ad is clicked on they must pay 30 cents.   For example, if 1000 people click on their PPC ad, they’ll have paid 300 dollars for that traffic.  In short, PPC advertising is beneficial for advertisers and marketers because it brings paid advertisements to the top of search results, creating more traffic for those sites. The image below is an example of PPC advertising.

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