Pay-per-click (PPC) advertising is an effective online marketing strategy used to drive traffic to websites. But how exactly does it work? This guide will explain the basics of PPC and how to leverage it for your business.
PPC advertising lets you show ads on search engine results pages and other web properties like YouTube or Facebook. Unlike organic search results, you pay the search engine or platform to have your ads appear when people search relevant keywords or visit sites related to your target audience.
The name pay-per-click comes from the pricing model. You bid on keywords and only pay when someone actually clicks your ad, rather than merely seeing it. The benefits are you can control spends and get your ads directly in front of interested searchers actively looking for your products, services or information.
PPC platforms like Google Ads allow you to create and optimize targeted ad campaigns. First, you select keywords that are relevant to your business and offerings. For example, a clothing boutique may want to bid on terms like “womens dresses” or “cheap jeans online.”
You then create text-based ads and designate the maximum bid you’re willing to pay for that keyword. When people search those terms, your ads may appear next to the search results. You only get charged if the user clicks your ad.
PPC ads can appear:
The placements depend on your campaign type and configurations. With Google’s wide network, your PPC ads can reach your audience wherever they browse online.
So how does the bidding actually work? Google runs instant auctions whenever a search is run to determine which ads show and their position on the page. Advertisers compete based on the following factors:
Higher bids and quality scores generally result in better ad positions. Google wants to maintain strong user experience. You’re charged the minimum needed to outrank the next advertiser, which may be less than your full bid.
On average, PPC ads cost between £1 to £2 per click in competitive industries for the UK and other Western countries. However, costs range greatly based on keyword demand and competition. Some high-buyer-intent terms can cost £50 or more per click. Monthly PPC budgets often range from a few hundred to tens of thousands of pounds depending on traffic needs.
Setting up conversion tracking and analysing performance data helps maximise ROI. Targeting less competitive long-tail keywords in specific niches may allow you to decrease average costs too.
Here are some tips for PPC success:
Pay-per-click advertising provides a flexible, measurable way to reach your target audience and drive website traffic. With the right keywords, well-optimized ads, and analytics-driven iteration, your PPC campaigns can deliver significant ROI. Consider exploring platforms like Google Ads or Bing Ads to boost your online visibility.
Table of Contents
