Pay-Per-Click or PPC is a model of digital advertisement where the client has to pay a certain sum for each click of his ads. The biggest advantage of PPC is that no money is made if a user accesses a search engine and sees your advertisement but does not click on it. Search engine advertisement (also known as paid search engine marketing) is one of the most popular forms of PPC. It allows advertisers to bid for ad placement in a search engine-sponsored link when someone performs a search related to their business offering.
Pay-per-click is usually associated with first-tier search engines (such as Google ads, amazon advertising, and Microsoft advertising formerly Bing ads) With search engines, advertisers typically bid on keyword phrases relevant to their target market and pay when ads (text-based search ads or shopping ads that are combination of image and text)are clicked. In contrast, content sites commonly charge a fixed price per click rather than use a bidding system
How does Pay-Per-Click work?
The pay-per-click model is primarily based on keywords. For example, in search engines, online ads only appear when someone searches a keyword related to the product or service being advertised. Therefore, companies that rely on the PPC advertising model research and analyze the keyword most applicable to their product or service. Investing in relevant keywords can result in a higher number of clicks and, eventually, higher profit.
Types of pay-per-click model
There are mainly two types of pay-per-click models flat rated model and bid-based model
In the flat-rate pay-per-click model, an advertiser pays a publisher a fixed fee for each click. The publisher generally keeps a list of different PPC rates that apply to different areas of their website. Note that publishers are generally open to negotiation regarding the price. A publisher is very likely to lower the fixed price if an advertiser offers a long-term or high-value contract.
In the bid-based model, each advertiser makes a bid with the maximum amount of money they are willing to pay for an advertising spot. Then, a publisher undertakes an auction using automated tools. An auction is run whenever a visitor triggers the ad spot.
Note that the winner of an auction is generally determined by the rank, not the total amount of money offered. The rank considers both the amount of money offered and the quality of the content offered by the advertiser. Thus the relevance of the content is as important as the bid.
Advantage of Pay-Per-Click
- Cost-effective – because you only pay when a user actually reaches your website, it can be a good value for money.
- Targeted – you can choose your audience according to demographic like location, language, and device
- Measurable – PPC campaigns can be set up to be carefully effective. you can determine exactly how much your return on investment is.
- Training resources – there are many (often free) online courses and training materials to help you develop your skill
- Customizable – as you run your campaigns, you can make many small adjustments to improve based on what works best.
- Fast – you will see the impact of your PPC effort almost immediately. Organic Search Engine Optimisation (SEO) tactics can take months to make a difference.
Disadvantage of Pay-Per-Click
- Time investment – you can’t just set up your PPC campaigns and leave them. You need to invest time into optimizing and improving to get the best result.
- Skills required – it can take some practice to set up effective campaigns. Many businesses choose to use a specialist agency.
- Cost can quickly add up – if you aren’t monitoring and optimizing your campaigns to make sure you get a return on investment, money could be wasted. You will need to allocate a budget for PPC campaigns, unlike SEO tactics where the investment is time and skill
- Click and visit don’t always lead to sales – you will need to convince the user to ‘convert’ once they reach your website.
PPC or Pay-Per-Click is a type of internet marketing that involves advertising paying a fee each time one of their ads is clicked. Simply, you only pay for advertising if your ad is actually clicked on. It’s essentially a method of buying visits to your site in addition to driving website visits organically. PPC advertisements have a vast amount of scope in the digital marketing field, Discover PPC from the best digital marketing course Thrissur, and became an expert in PPC advertisement.