Pay Per Click (PPC) is an online advertising model in which advertisers pay a fee each time their ad is clicked. It allows businesses to bid for ad placement in a search engine's sponsored links when someone searches for a keyword related to their business offering. PPC advertising platforms, such as Google Ads and Bing Ads, allow advertisers to display ads in search engine results pages (SERPs), on websites, and across various digital channels.
1. Ad Auction
When a user performs a search query on a search engine, the search engine's ad auction system evaluates advertisers' bids, ad quality, and relevance to determine which ads to display and in what order.
Advertisers bid on keywords relevant to their business, specifying the maximum amount they're willing to pay for each click on their ad.
2. Ad Placement
Ads are displayed alongside organic search results on search engine results pages (SERPs), typically labeled as "sponsored" or "ad" to distinguish them from organic results.
Advertisers can also display ads on websites and digital platforms that are part of the ad network associated with the PPC advertising platform.
3. Ad Creation
Advertisers create ads using text, images, or videos that are relevant to the target audience and aligned with their business goals.
Ads typically include a headline, description, and display URL, as well as ad extensions such as sitelinks, callouts, and location information to enhance visibility and engagement.
4. Keyword Targeting
Advertisers select keywords or phrases that trigger their ads to appear when users search for related terms.
Keywords are organized into ad groups based on relevance and similarity, allowing advertisers to create targeted and relevant ad campaigns.
5. Bidding Strategy
Advertisers set bids for their chosen keywords, indicating the maximum amount they're willing to pay for each click on their ad.
Bids are influenced by factors such as keyword competitiveness, ad position, and budget constraints, with higher bids typically resulting in higher ad placement.
6. Budget Management
Advertisers set daily or monthly budgets to control their spending on PPC advertising campaigns.
Budgets can be adjusted based on campaign performance, allowing advertisers to allocate more budget to high-performing campaigns and pause or adjust underperforming ones.
7. Performance Monitoring
Advertisers track the performance of their PPC campaigns using analytics tools provided by the advertising platform.
Key performance metrics include click-through rate (CTR), conversion rate, cost per click (CPC), return on ad spend (ROAS), and overall campaign ROI.
8. Optimization and Testing
Advertisers continually optimize their PPC campaigns by testing different ad creatives, targeting options, and bidding strategies to improve performance and maximize ROI.
Optimization techniques may include refining keyword lists, adjusting ad copy, experimenting with ad extensions, and refining landing page experiences.