pay per click advertising

Understanding Pay Per Click (PPC)

What is Pay Per Click

Pay Per Click or PPC is the buying of traffic from search engines such as Google, Bing, Yahoo, and The search engines show the ads and the sponsors results which are usually at the top of the search results page. The Ads shown across display networks on third-party sites are affiliated with the search engines to show the most relevant ads. The display network ads are similar to banner ads which means that marketers choose the ad format for text, image, and video. The display ads can be displayed based on Keywords, User interest, Contextual targeting, and Remarketing. Paid search is an action-based system. That is, the auction decides the ad position, and you only pay for traffic to your website.


Marketers can choose and customize ads based on geographical area, date and time and device. Geographical location –  you decide what geographic area to target your ads. For example, you can choose to advertise in Australia, Canada, and Europe. Time and date – marketers decide on what day and time they want customers to see the ad. This strategy can save the company money since the marketer chooses if customers can view the advertisement after business hours. Marketers can select different ads for different devices – they can choose whether the ads are shown on mobile, tablet or computer or all three.

So what is the Pay Per Click cycle?

The PPC cycle begins when the marketer chooses the keywords that are believed to provide the best results. The ads are then written/created. The marketer then sets the bid (the amount they are willing to spend on each ad). The ad is then displayed to the target audience on the various search engines. Customers/users click on the ad and then sent to the business landing page. Once the ad is clicked, you pay the search engine. Finally, the marker can measure the results to determine which keywords worked best and led to the most conversion and which ones should be marked ‘negative’ or removed.

More on pay-per click will be posted in a subsequent blog post.

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