If you’ve ever noticed advertisements appearing in results from searches in Google as well as other search engines then you already know about pay-per-click also known as PPC advertising. These ads are also displayed as ads that are sponsored as results of searches. Pay-per-click is a model offered mostly through search engines (e.g., Google) as well as social networks (e.g., Facebook). Google Ads, Facebook Ads along Twitter Ads have become among the most used options that offer PPC advertising.

What Is Pay-Per-Click Advertising?

PPC, also known as pay-per-click is a popular advertising method in online ads that helps to increase traffic to a site. It’s very effective because advertisers only pay the publisher only when their ad is clicked. This stops advertisers from investing their budgets into campaigns with the ability to measure their effectiveness quantitatively.

There are a variety of PPC ads; however, among the more well-known kinds is the paid search advertisement. The ads are displayed when people look for something online with an online search engine such as Google particularly when they’re doing commercial searches, which means that they’re searching for something they want to purchase. It could be anything that in a mobile search (someone seeking “pizza near me” on their Smartphone) to local service searches (someone seeking doctors or dentists, Electricians, Plumbers, etc within their vicinity) to someone who is shopping for a present (“Birthday décor and Gifts”) or an expensive product like enterprise software. These searches can generate pay-per-click ads.

Other types of PPC advertising include display ads (typically serving banner advertisements) and remarketing.

When it comes to pay-per-click advertisements, companies advertising only pay only when a person actually clicks on their advertisement, hence the term “pay-per-click.”

In short, the “pay-per-click” model is a crucial concept to comprehend the digital market. PPC is an online advertising model in which advertisers get paid every time a person clicks one of their online advertisements. But do you know what it is?

How Does Pay-Per-Click Advertising Work?

PPC, also known as pay-per-click is a digital advertising model that allows advertisers to pay an amount (fixed or determined through auction) each time a user clicks one of their advertisements and also visits their website. The concept behind the pay-per-click campaign will be to “buy visits” for a specific website. The goal is to trigger an exact type of user action, like purchasing or registering for the product.

To ensure that ads be displayed alongside the results of the results page of a search engine (commonly called the Search Engine Results Page, also known as a SERP) advertisers can’t simply spend more money to ensure that their advertisements are displayed more prominently than their competitor’s advertisements. However, ads are subject to Ad Auction, an entirely automated procedure used by Google along with other big search engines employ to assess the relevancy and legitimacy of ads that appear within their search results.