Pay-per-click advertising


What is PPC (pay-per-click) advertising?

Pay-per-click (PPC) is an online advertising method in which an advertiser pays a publisher for each "click" on an advertising links. The cost-per-click (CPC) strategy is known as PPC. Search engines (such as Google) and social media networks are the most common vendors of the pay-per-click model (e.g., Facebook). The most popular PPC advertising channels are Google Ads, Facebook Ads, and Twitter Ads.


How pay-per-click advertising works

Keywords are fundamental to the pay-per-click strategy. Online adverts (also known as sponsored links) appear in search engines, for example, only when someone searches for a keyword relating to the product or service being marketed. Investing in appropriate keywords can result in more clicks and, therefore, better revenue. The PPC method is believed to benefit both marketers and publishers. A well-designed PPC advertising campaign allows an advertiser to save a significant amount of money since the value of each potential customer visit (click) outweighs the cost of the click paid to a publisher.


Types of pay-per-click advertising


Paid search

Paid search marketing is a popular form of pay-per-click (PPC) advertising. Google AdWords, for example, show ad to people who look for specific keywords. Campaigns are created by creating ad copy, identifying related keywords, and selecting a suitable landing page on website.


Display advertising

Display advertising are banner, picture, or text ads that show on various websites and are chosen to target specific populations. These advertisements will provide a link to website. They often have a lower click-through rate than search advertisements, but they can be effective for increasing brand exposure.


Social media

Social media networks, such as Facebook, have a large number of users who may be potential customers. PPC advertising on these platforms can benefit in increasing website click-through rates. Campaigns can help raise awareness of company's products or services. Specific groups and preferences can be targeted via these channels.


Affiliates marketing

Affiliate marketers produce PPC advertisements advertising your products or services, which they position on: search engines, price comparison websites, focused content sites, and heavily trafficked websites. Affiliate marketing has a pay-for-performance strategy that is tightly associated with results. Affiliate marketing involves continuous management and can be time consuming. Major concerns of poor ad placing can result in bad engagement or reputation loss.


Source: 1. nibusinessinfo.co.uk; 2. corporatefinanceinstitute.com


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