How does PPC work?

 

Short for pay-per-click, PPC is a method of advertising your website and, in turn, increasing revenue. PPC can also provide a way of gaining potential conversions for an advertiser.

Rather than a traditional advertising process, where the advertiser pays for space on a website or other location. PPC lessens the amount of money that changes hands and increases the overall benefit for the advertiser.

Slowing it Down

Let’s say you work for EFG Corporation and you’re looking to get more advertising out there. You want more people to come to your website and you’re thinking about creating an ad. You can pay a set amount of money for that ad to be placed on search engines or on other people’s websites at all times, but you’re likely going to pay a large amount of money for any high-quality websites.

Your other option is to put an ad on their page and pay for each person they get to click on the ad. Instead of just paying them to have the ad there, and possibly not getting anyone who is interested in you, they only get paid if people actually click on the ad and follow that link to your website. You pay a set amount per click or per 100 clicks or whatever you agree on.

Generally, the rate is going to be low. Just because someone clicks on your ad doesn’t mean they’re going to make a purchase, after all. So you offer a few cents per 100 clicks. A website that is just starting out or is looking to make a little extra money will have no problem putting an ad on their page in exchange for that kind of deal. They make a little extra money every time someone goes from their page to yours and you only have to pay for the people who do.

Why It’s Changing

Companies have been paying a lot of money for advertising and not seeing a whole lot of return on that investment. As a result, they’re looking for ways to save a little bit of money but still get some decent conversion rates. With this method, you’re not wasting a lot of money, which works out great for you. The ad also doesn’t take up too much space, which makes it a good thing for whoever owns that website as well. They have just a little room taken up by your ad but they are able to make some money off it.

Setting up Keywords

If you are going to be using pay-per-click on a search engine, however, you want to make sure that you have the right keywords, because your ad is going to show up when someone searches those specific keywords. Doing a bit of research to know what keywords perform best for your niche and your business is going to help you spend less money on your advertising, and still get the results that you’re looking for. Just make sure you’re looking at everything you can to make a plan for your advertising process. You can definitely make it easier and less expensive for yourself and still get the conversion rate you’re looking for.

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