Pay-per-click advertising and how it works


What you need to know about pay-per-click advertising and how to get started with PPC will be covered in this session.

What is Pay-Per-Click advertising?
How does it all go over, exactly?
What’s more, how can you make it work for you personally?

Ads, keywords, budgets, bids, ad rank, targeting, and conversions are all covered in this chapter’s introduction to paid search marketing.
To get things started, let’s start with the essentials.

Pay per click

In the pay-per-click (PPC) model, marketers may publish advertisements on a platform for advertising and pay the platform’s host when their ad is clicked.

The purpose of the ad is to direct the person who clicks to the advertiser’s website or app, where the user may take a beneficial action, such as buying a product.

Because search engines let marketers to show relevant advertising based on what consumers are seeking for, they have become a popular host platform

Using real-time bidding (RTB), advertising platforms like Google Ads and Microsoft Ads sell advertising inventory in a private automated auction based on real-time data.

How it works?

An auction for the term occurs instantly every time an ad space appears on a SERP (search engine results page).
The top spot is awarded based on a variety of variables, including the amount paid and the ad’s quality.
PPC relies on these auctions to keep the wheels turning. When someone looks for anything on a search engine, they begin.
There is an auction set up based on keywords that are bid on by advertisers that want to display advertising linked to a user’s search query if advertisers are interested.
Once an ad has won the auction, it appears on the search engine results page.
If you want to be able to participate in these auctions, you’ll need a Google Ads account.
Accounts are divided into campaigns for easy administration and reporting of various regions, product kinds, or other helpful classification.

There are separate ad groups for each campaign with keywords and related advertising in them.


PPC relies heavily on keywords to link marketers with search queries.
-The search terms that people enter into a search engine’s search box are known as queries.
These users’ search queries are matched up with keywords, which are then used to target these people via marketing.
When used in this way, keywords serve as broad abstractions for a wide variety of search queries that are prone to errors such as spelling errors.
-Advertisers may employ keyword match types with varying degrees of accuracy to match search queries.
However, marketers have the option of allowing for changes such as alternative word order, various spellings, or even the introduction of additional words.
Negative keywords may also be used to prohibit adverts from being shown when a search query contains certain terms, hence reducing the amount of irrelevant traffic.

Ad Campaigns

With the help of keywords, marketers must also plan out their campaigns’ ad strategy.
Each ad group has its own unique collection of keywords and is structured around a similar subject.
If the auction is won, users will see ads, thus they must be perfect.
They often include headlines, descriptive lines, and a link to the website.
They might appear at the top or the bottom of a search engine results page (SERP).
As a rule of thumb, it’s excellent practice to try various ad wording to discover which one works the best.
Ad extensions, offered by services like Google Adverts and Microsoft Ads, improve the visual appeal of ads.
For example, there are sitelink extensions, which provide extra URLs for a site, and call extensions, which offer a phone number while the company is open.
In addition to increasing ad exposure, the usage of ad extensions increases the amount of information that may be sent to consumers.

Bids and Budgets

A campaign-level budget and ad group or keyword-level bids are used for this.
Daily budgets may be exceeded, but monthly caps are not imposed since they are established at the campaign level.
According to the general account plan, budgets should be defined but bids are a more specific technique to manage spending.
Ad groups must have bids, but keyword bids take precedence over ad group bids.
Bidding tactics that are automated are popular among many marketers.
The advertising platform determines the best offer for each auction based on the advertiser’s specified campaign objective.
It is possible to apply bid strategies to a single campaign or to a group of campaigns.
Because of the RTB mechanism, not just the maximum bid affects the actual amount paid by the advertiser.

Having the highest offer isn’t enough to win the auction.

Other variables are taken into account by search engines when deciding which adverts should appear at the top of the SERP.
Other factors are taken into account by search engines in their own unique methods when determining ad rank.

Ad rank

In the case of Google, for example:

-Ad relevancy and quality are two of the most important factors to consider.

-Search context (e.g., device and time of day used by the user).

-Impact on format (e.g., whether it includes extensions that enhance the format of the ad).

Ad relevance is determined by Quality Score, which is a criterion used by advertisers.

What mades up Quality Score?

-Click trought rate

-The keyword’s usefulness in the context of the ad.

-Keyword and ad relevancy to search query.

-The quality of the landing page.

The better the Quality Score is, the lower the CPC will be. Ad relevancy is vitally crucial.
Advertisers that bid on terms with poor Quality Scores are penalized by search engines, who seldom display their adverts, even if their bids are high.

Ads may be shown to the correct people by using the proper keywords.


However, there are additional ways to focus campaigns for better results, such as:

-Targeting of devices.

-Aiming at a certain area.

It’s all about the time and day.

-Selective demographics.

Advertisers may better target their advertising to mobile users in the evening or to those under the age of 25 who are within a given radius of a certain area.
It’s important because different ad wording could work better for one set of consumers than another.
There are ways to target or exclude previous visitors who do follow-up searches by using remarketing solutions that enable for more precise ad copy message and altered budgets.
An automated adjustment of keyword bids may provide marketers greater control over traffic and spending by bidding when consumers are more valuable.


It’s not only about getting them to click on your link. The ultimate goal is to get them to convert.

So pay per click is basically nowdays is make-to-convert.

For each sort of company, there are certain activities that marketers want consumers to do after clicking on an advertisement.

Examples of common conversions include:

-Buying a product or service.

-Subscribing to an email list.


-And there’s a lot more.

Tracking conversions is critical if you want to know how effective a PPC campaign is and how many conversions can be traced back to paid search.

Conversion data may be collected by platforms like Google Ads using a piece of code inserted into the source code of the conversion page (which is accessed after conversion, such a thank you page).

There is a lot more to tracking conversions than simply tracking a single click on an ad and a subsequent purchase.

Visits to several websites or emails, phone calls, or in-store appearances are not uncommon.

The credit for conversions may be attributed to various pathways by using an analytics solution like Google Analytics.

By Sarah Kuhn

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