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PPC How Does Pay Per Click Work? – Learning the Basics

Elite

Pay per click (PPC) advertising is one of the best and most efficient marketing methods that can help you in generating a lot of revenues for the business. It can be a powerful marketing tool if it is done in a right way. With the ability to setup a strong campaign, you can get quality traffic to your website. Even though you know what PPC is, do you know how does pay per click work?

How Does Pay Per Click Work?

To know more about how pay per click ads work and how this can benefit your business, read on. We are here to explain to you all the details about the campaign and how PPC work. There are many businesses that jump straight into the PPC campaigns without knowing how they work.

How Does PPC Work?

When it comes to what PPC is, there are three main parties – advertisers, publishers and the middle man. Advertisers are the individuals or businesses that use these pay per click ads for promoting their services or products. For displaying their advertisements, they basically pay the pay-per-click networks such as Bing Ads, AdWords or Facebook Ads.

So, whenever a visitor comes and clicks on these advertisements, the network charges money from the business. This is the reason behind why it is called the ‘pay-per-click’ ads. Depending on the keywords and competition, the charge for PPC ads is determined. It can be anywhere from a few cents to a few dollars to reap the benefits of PPC.

When other advertisers are also competing for the same keywords that you have chosen, then it is quite obvious that the price of the keyword will be much higher. There are no limits for the number of the advertisement slots that are available in the Google Homepage. So, the businesses have to battle in order to claim their own spot. This is where the bidding will come into play.

On the other hand, publishers are the ones who team up with different PPC networks for earning revenues from displaying the advertisements. Almost all publishers have their own website where they can display their ads. When any visitor clicks on these ads, the publishers will receive certain percentage of the revenue. The amount they receive completely depends on the type of keywords the users have clicked.

When the demand for a keyword is too high, the bidding will take place. Each keyword has four slots for displaying ads. Depending on the average bid for the keyword, they will determine the position of the ads. It is important for the business to bid for the number 1 position but it is not always worth it.

In Conclusion

So, how does pay per click work? As much as PPC ads are quite efficient and can provide you with quality traffic, you’ll also have to continue doing your research to learn why you should invest in PPC. Make sure to provide the best information and target the right keywords to get the maximum advantage out of these PPC ads.

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