What is PPC?
Pay-per-click—or PPC—advertising is an internet advertising strategy which allows advertisers to place ads online and pay only for the clicks on those ads.
Why is PPC Important?
The internet is the ideal settings to generate new sales, companies that are not maximizing the internet’s potential are at a serious competitive disadvantage when attempting to locate prospective customers. PPC allows companies to capitalize on the visibility, flexibility, and ubiquity of the internet in a manner which maximizes the return on investment. The economically efficient nature of PPC enables advertisers to achieve the greatest impact from their ad dollars by targeting extremely specific markets and paying only for advertisements that are effective.
How Does PPC Work?
When a search engine user runs a search for a keyword the organic results—or the results that “naturally” occur and are unaffected by advertising sponsorships—are displayed along with the PPC results. These PPC results are ads which are directly correlated to the subject of the keyword search. If a user searches for “shoes” the PPC ads which return with the search results will likely pertain to shoe related products.
How Do the Search Engines Decide Which Ads to Run?
In order to choose an ad to accompany a particular search there are two primary criteria that must be considered. First, the search engine deciphers which companies have bid on certain keyword searches. Second, the ads are placed in a descending hierarchy from the highest bidder on a keyword search to the lowest. The highest bidder is then given the optimum location for their PPC ad.
Occasionally there is enough space for ads to display on several pages, in these situations all of the ads may show. The highest bidders are placed in the most desirable locations while the lowest bidders are placed in the least desirable locations. Often times, however, there is limited ad space available and only one or a few of the highest bidders can be displayed.
Advertisers typically set a monthly budget for PPC campaigns which ensures that they do not exceed a certain spending criteria. Once the highest bidder has reached their daily or monthly limit for a keyword lower bidders are then able to move up in the queue and have their ads displayed.
How Can PPC Help My Business?
PPC advertising is an extremely targeted and trackable form of advertising. Once a firm identifies the most searched keywords pertaining to a company’s products they are then able to focus their attention in very specific and effective directions. A PPC campaign is one of the most cost-effective advertising mediums because it only charges for ads that are clicked on. No other advertising format allows the same level of precision spending and targeting without requiring an extremely high initial investment. PPC can increase web traffic for businesses of all sizes and offers an unparalleled return on investment.