How Does Pay-Per-Click (PPC) Advertising Work

Pay-per-click is an online advertising mechanism where businesses pay a platform like Facebook or Instagram or a search engine like Google or Bing each time a visitor clicks on an advertisement. These ads appear when visitors search for anything online,particularly when they are searching for something to purchase. A business is only charged when a visitor clicks on their advertisement which is why it is called pay-per-click.

Any type of search whether it is flowers for Valentine’s Day or a birthday cake ppc advertising Brisbane results in one or more pay-per-click ads showing up. Each business’s advertisement will try to convince the potential customer they should explore their offer over the others.

Advertisements created by businesses for display on search engines are subject to an Ad Auction – this is an automated mechanism where the search engine figures out the relevance of the advertisement that appears on the results page when someone types what they are looking for. The entire system works on ad relevancy and is not down to who pays more to appear on top of the page. Businesses cannot pay more to get more prominence than their competitors or to appear on top of the search results page. 

The Ad Auction allows businesses to bid for the keywords they want to use to trigger a response from the search engine to show their advertisement. For example, if a visitor types “red roses delivery” into a search engine, the search engine will throw up advertisements from businesses that deliver red roses. The search engine will determine the order and placement of each advertisement by each advertiser. Because the business pays for each click on its advertisements it is important to bid for keywords that are most relevant to the business or what it is offering then. For example, a flower delivery shop will bid for Valentine’s Day as an additional keyword to its usual repertoire of keywords only during the second week of February. There are keyword tools that can be used to help a business choose the most relevant keywordsto optimise campaign ROI objectives.

While a pay-per-click campaign strategy is a cost-effective way to get visitors searching for what you have to offer to your website, it is an exercise that takes some effort. Payback can be high only if the process is managed effectively. A business’ pay-per-click costs are influenced by several factors. The relevance of the keywords that are chosen by the business to bid on is an important factor. A business needs to choose the best or most likely keywords their target group will use when searching for something they want to purchase or are looking for a solution to a problem they want to resolve. Next, the quality of the landing pages and advertisements also counts. Search engines give the best placements to businesses that provide a good experience to the visitor. A business cannot pay more than the competition to secure a better location for its advertisements.