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title: How Does Pay-Per-Click Work (A Beginners Guide for Newbies)

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# How Does Pay-Per-Click Work (A Beginners Guide for Newbies)

![](https://i.imgur.com/xwHv82T.png)



PPC is an essential part of online marketing. When setting up a website, you should always consider PPC as part of the advertising mix. Whether you have just set up your first website or managed an extensive network of established websites, PPC will increase traffic and sales.

PPC is one of the most cost-effective ways to gain targeted traffic from people actively searching for something your website offers. It also opens the door for greater [collaboration](https://www.exoplatform.com/blog/collaboration-in-business/) between businesses and advertising platforms, ensuring campaigns reach the right audience.

# What is PPC?

PPC is an online advertising model businesses use to direct traffic to their websites.

Businesses will bid on keywords (the terms that people use to search for information online), and the highest bidder will have their ad displayed at the top of the search engine results pages (SERPs).
When a user clicks on an ad, it is called a paid search click, and the business pays a fee to the search engine for each click. This fee will often come out of the amount that the advertiser has bid (the maximum price they are willing to pay for each click).

# How does PPC work?

[PPC ads](https://ppcexpo.com/ppc
) are placed on search engines such as Google, Bing, and Yahoo. When a user searches for a certain term that the advertiser has already chosen, their ad will appear at the top of the SERPs.

In addition to these ads being shown on search engines, many businesses also create display ads that allow them to target specific websites, Facebook and Twitter users, or even people that have recently visited their website.

When users click on an ad, they are directed to the advertiser's website to complete the desired action, such as making a purchase, filling in a form, or signing up for a newsletter.

The advertiser only pays when someone clicks on their ad. If nobody clicks on the ad, the advertiser is not charged anything.

# Why use PPC?

PPC is one of the most cost-effective ways to reach new customers and drive traffic to your website.
It has a few advantages over other marketing methods:

●	It can be incredibly targeted (depending on what you are advertising) so that your ad reaches exactly the people that will find it relevant.

●	This increased relevancy also means that users are more likely to click on your ad, as they are already interested in what you have to offer.

●	It is a very immediate form of marketing - ads appear almost immediately after being created, and payments are only made when someone clicks on the ad.

●	This means that businesses can see results from their advertising campaigns very quickly, which is excellent for measuring the effectiveness of different campaigns.

●	It is also one of the most measurable forms of marketing, so you can track how many people have clicked on your ad, how much traffic it has generated, and how much revenue it has generated.

Element of PPC

**Bids.**

The maximum price you are willing to pay for each click on your ad.
Quality Score.

It is a metric Google uses to measure how relevant your ad is to the user's search.

**Ad Rank.**

The position of your ad on the SERPs (based on your bid and quality score).

**CPC.**

The amount you are charged each time someone clicks on your ad.
Campaigns.

A collection of ads that share a common goal (such as generating new leads or selling a specific product).

**Ad Groups.**

A collection of ads that are related to each other (such as all the ads for a specific promotion).

**Keywords.**

The terms that people use to search for information online.

**Negative Keywords.**

Terms that you don't want your ad to show up for (such as competitors' names).
Landing Pages.
The page on your website that a user is directed to when they click on your ad.

**Ad Extensions.**

Additional information that can be shown with your ads, such as the address of your business or a phone number.
Audiences.

These are the people you want to target with your ads (such as people who have visited your website in the past or people who live in a specific area).

**Bidding Strategy.**

The way you want to bid for your ads (such as "optimize for conversions" or "maximum cost per acquisition").

**Popular types of PPC**

The popular types of PPC are:

**Google AdWords.**

The most popular form of PPC, [Google AdWords](https://certificationglobe.com/), allows businesses to create text, image, and video ads that appear on the Google SERPs.

**Bing Ads.**

Similar to Google AdWords, Bing Ads allows businesses to create text, image, and video ads that appear on the Bing and Yahoo SERPs.

**Facebook Ads.**

Businesses can use Facebook Ads to promote their products or services to people that have already liked their page, as well as people within a specific geographic area.

It is also possible to create lookalike audiences based on specific customer groups or run campaigns with Instagram.

**LinkedIn Ads.**

LinkedIn allows businesses to create ads and sponsored content that appears on LinkedIn.com and its various mobile apps.

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Types of PPC

There are two main types of PPC:
Search Advertising

These ads appear in the natural search results (which means they use keywords similar to how people use to search for information online).
Display Advertising
These ads appear on websites across the internet (usually in the form of banner ads).
Major components of a PPC campaign

**There are five main components to a PPC campaign:**

1. Products - the products or services you are advertising
2. Keywords - the words that people use to search for your products or services
3. Headline - the text used in each ad (it needs to be compelling to encourage people to click on it)
4. Display URL - the address (URL) of your website
5. Landing Page - the page on your website that users are directed to when they click on an ad.

**Conclusion**

Pay-per-click advertising enables you to reach more people by using the internet as a platform for marketing. It is also cost-effective and easy to set up with popular platforms such as Google AdWords and Bing Ads.
To get started with PPC, begin by finding out what your competitors are doing and studying their ad campaigns.



