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What Is PPC Advertising and How Exactly Does It Work?

what is PPC
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So, what is PPC Advertising?

“PPC – Pay Per Click – is a digital advertising model that drives traffic to a designated website, in which the advertiser pays the publisher each time the ad is clicked by a user.”

Sounds simple enough, yes?

Well, it is. PPC Advertising is one of the simplest, most transparent, and most straightforward digital advertising methods out there. You simply pay when an interested potential customer clicks on your ad. You are in control of your budget, your selected keywords bring you a well-targeted crowd, and as long as you continue to spend, you can be assured of immediate and consistent traffic through pay per click advertising.

How does it work?

Although there are plenty of PPC Advertising platforms out there, Google Ads is undoubtedly the most popular and most effective pay per click advertising system at present. Therefore, let’s look into Google’s PPC model to understand how it works.

Following is the process of a Google Ads campaign.

  • Users bid on their preferred keywords
  • Each time a search is initiated, the pool of advertisers is assessed by Google, and it selects several winners to show up in the coveted ad space on the very top of Google’s Search Results page.

This does not necessarily mean the highest bidder always gets the spot. Google gives an “Ad Rank” to each advertiser depending on the relevance of their keyword, the quality of the landing page, the ad text and also the ad creative.

Keyword Research for PPC Campaigns

When it comes to PPC advertising, the success of the ad largely depends on the keyword/s selected. It is extremely important to have thorough knowledge about the target audience and their search patterns before curating a keyword list for a campaign. A good PPC Ad campaign continuously evolves according to its results. Keywords used in the ads have to be updated and refined according to the insights. For advertisers with low budgets, it is better to go for “long-tail keywords”. They are more specific search queries often used by niche audiences. They are less competitive, less expensive, and get less search traffic; but are known to give higher conversions due to their specific nature.

Following are characteristics of a good PPC keyword list.

  • Highly relevant
  • Popular
  • Flexible and regularly updated
  • Attainable and Measurable
  • A good balance between specific and broad to reach the optimal target audience

Final Thoughts

PPC is extremely effective for businesses that target consumers that run very specific searches before they purchase their service or the product. It is quick, and gives strong short term results. When it comes to building a long term digital marketing strategy, however, PPC should always be complemented with a long term marketing method such as Search Engine Optimization (SEO) for the best results. It is also advisable to combine a solid organic growth strategy along with PPC advertising for long term marketing success in your business. 

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