How does Pay Per Click Work?

How does Pay Per Click Work?

Anuja Lath 13/11/2018 8
PPC (pay-per-click) is a marketing strategy carried out on the Internet through SEO (Search engine Optimization) with a budget that is set for advertisement campaigns. There are millions of businesses that indulge in pay per click advertising on search engines such as Google, Yahoo and Bing.


Although it is expensive, when we look at the broader picture, the money spent on PPC seems trivial. This is because the number of visits to the website is worth much more than the money that is spent on PPC. Now you may ask: How does pay per click work and how does one set up pay per click advertising? You’ll find all the answers as you continue reading this article.

How does Pay Per Click Work?

Advertisements on search engines appear on the top and on the right side of the search engine results page. Pay per click is exactly what it sounds like. You pay for your ad to be displayed on a prominent location on a search engine results page, and when a visitor clicks on your ad, you have to pay for it. For example, if you are running your pay per click campaign on Google, you will pay Google a certain price when a visitor clicks on your ad. Thus the name pay per click. In order to have a prominent placement of an ad, bidding is important. Of course, there are thousands of marketers who want to display their ad for the same keyword. But whoever is able to pull out more money is the one who gets the best location of placing their ad. To put it in simple words- the advertiser buys visits for their sites because online marketing is a great way to capture the market and expand business to new geographic markets. However, the service provider you use will keep in mind the quality and relevance of your ad to make sure it is still providing users useful information.

How to Set up Pay Per Click Advertising?

Setting up a PPC campaign is fairly easy and is one of the best methods of converting leads into sales. For successful PPC, the advertiser must be clear in his mind about what he wants to achieve through his PPC campaign. Some marketers are only looking to get more traffic, while others are looking for people to purchase products or services. Take a look at the steps involved in running a successful PPC campaign:

Understand PPC Goals

Before you begin your PPC campaign, it is important that you are clear on the goals you want to achieve. Like we mentioned above, you should know exactly why you want to run a PPC campaign. Whether it is for boosting traffic or boosting sales of a particular product or service, unless you know what you are trying to achieve, you are unlikely to run successful PPC ads. Based on your goals, you will also go ahead with the selection of the most suitable keywords. Your goals will determine the keywords you pick and also the ads you will end up creating.

Design & Set up your Ads

Once you’ve picked out your keywords using tools such as Google Keyword planner or, it’s time to create the PPC ads. PPC ads need to be designed in a way that are hard-hitting, eye catchy and worth clicking on. You must remember to always keep your landing page highly relevant to the kind of ad you put out. The last thing you want to do is mislead your audience by sending them to a landing page that is completely irrelevant to the ad they clicked on. Keep your ads simple yet effective. You can do this by maintaining a simple ad structure that focuses on providing relevant information to your visitors and viewers.

Measure Success

Once you have designed your ads and start running them, it is important that you measure the success of your ads. It is important that you do this on a daily basis to check whether or not your ads are working. The good thing about PPC advertising is that you can change or modify your ads whenever you like. So based on the results, if your ads are not working well, you can change or tweak them whenever you like. Measuring the success of your ads ensures that you reach your goals by tweaking your ads to their best performance.

Paid advertising will bring you quick and successful returns if you carry it out properly and can afford it. In fact, it is one of the more effective ways of achieving your marketing and advertising goals faster. If you’re willing to pay for it, PPC advertising can work wonderfully for your business. However, it is not as simple as we think! It does involve a lot of hard work, time and strategies to carry out successful paid advertising campaigns.

So, now that you have understood what PPC is and how it works, we hope you go ahead and get started! If you’re still confused about pay per click advertising, leave us a comment and we’ll get back to you!

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Anuja Lath

Digital Marketing Expert

Anuja is the Co-founder and CEO of RedAlkemi Online Pvt. Ltd., a digital marketing agency helping clients with their end to end online presence. Anuja has 30 years of work experience as a successful entrepreneur and has co-founded several ventures since 1986. She and her team are passionate about helping SMEs achieve measurable online success for their business. Anuja holds a Bachelors degree in Advertising from the Government College of Fine Arts, Chandigarh, India.


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