The article will help you understand what is pay per click. Pay per click is an internet advertising model where a company pays a search engine (or other publisher website) to place an advertisement on the search engine and pays the search engine every time a potential customer clicks through to go to the company’s website. To understand what is pay per click, you need to understand the two main forms of pay per click which are flat-rate PPC and bid-based PPC and will be discussed in the article. The article will also discuss the basics of setting up a pay per click campaign.
Before going into the details of the cost side of PPC, it is important to have a PPC manager set up detailed reporting where companies can see the ROI of placed ads. To continue with the cost models, Flat-rate PPC is where a search engine agrees to be paid a fixed amount for each click. The rate is generally determined by how much advertisers want to pay for that term. Sites like eBay, PriceGrabber, and Kelkoo are examples of price comparison sites that use the flat-rate PPC model.
To help you understand what is pay per click, you will also need to understand bid-based PPC. Bid-based PPC is the other main form of PPC where companies set a maximum amount that they are willing to pay for a particular ad/keyword combination. The bid-based PPC company such as Google uses the bid information from multiple companies to determine placement of different companies’ ads on the search engine result page (SERP). The ranking of ads in the search engine result page depends on a variety of factors such as geo-location, the quality of the advertisement, and the relevancy of the landing page connected to the advertisement.
Putting together a basic pay per click campaign involves determining the goals for your company and determining which platform and campaign type to use. There are so many options to use today that it is recommended to hire a digital agency to help create, manage, and optimize your campaigns. Some of the top PPC platforms to choose include Google, Bing/Yahoo, Facebook, Amazon PPC, and LinkedIn. You will really need to learn all of them in order to understand what is pay per click.
After picking a PPC platform depending on your needs, if you do not choose to hire a digital agency, you will need to spend months learning about the different platforms, create new accounts/campaigns, create landing pages, and optimize your advertisements and landing pages through statistical testing to generate the highest ROI. If you are not interested in creating your own digital agency, it is highly recommended to hire a digital agency to help. Contact us here to let us help you quickly build profitable pay per click campaigns.