The Basics of Pay Per Click Advertising - Iceberg Web Design

The Basics of Pay Per Click Advertising

pay-per-clickThe definition of Pay-per-click is (on the internet) a business model whereby a company that has placed an advertisement on a website pays a sum of money to the host website when a user clicks on to the advertisement source.

 

Pay per click (ppc) is easy enough to understand: Every time a user clicks on your website you pay the website engine a small fee for that visitor. It is a basic concept and when done right can really generate a great return on investment for the advertiser. PPC is also good for the search engines by enabling them focus ads directly to the searchers and giving advertisers the exposure they want to generate new business. Searchers benefit from greater quality provided by the search engines that have created a formula to make sure the correct ads get to where they are the most helpful.

Google Ad Words

Google AdWords is by far the most popular pay-per-click platform over its top two competitors, Bing and Yahoo. Google holds a much higher market share and is widely known to give consistent quality information to its searchers.   Business’ bid on search terms to have their ads placed at the top or bottom of the page. They recently eliminated the ads on the right side opting to increase the placement at the top and bottom and decrease the saturation of ads overall on the page. Bidding on search terms can provide a great source of revenue if it is done right, being able to pay for each click, instead of just relying on the organic placement within Google’s search. For example if Iceberg Web Design bids on “Website Development” our ad may appear at the top of the search results. However, there is still a calculated formula besides simply bidding to the top of the search.   Simply put it is the: max bid of the cost per click (CPC) x quality score = ad rank or position. The Quality Score can be thought of like the credit score of a website relating to search quality. When a searcher searches for a relevant website term what is the click through rate, relevance, and landing page quality, among other factors.  While out bidding for the top spot is important, Google is still focused on giving the best user experience for the searchers. Having a slow to load or confusing website is going to hurt your quality score and ability to generate business online. Before diving into Google AdWord’s it is important to make sure your website is in top form.

Choosing Pay Per Click

Once establishing your sales funnel and feeling confident in your websites performance, PPC is a great way to build your customer base. If the right keyword research is done, PPC can generate qualified leads at a reasonable price.   Things to take into account when investing, is the lifetime value of a new client and your business ‘ability to convert. It has been proven that PPC can work for just about any business out there. From e-commerce, to a service based business and even brick in mortar operations that are looking to generate walk-ins and phone calls. The key is to have the right execution process. Take your time and do the necessary research or hire a professional to put together a plan to generate and convert traffic.   The efficiency of using someone who works daily on PPC campaigns can save lots of marketing investment on trial and error mistakes. As you progress it is important to stay current with the continuing changes in Google and your industry as a whole.   Gone are the days of placing adds in your local phonebook as a way to generate a consistent stream of business. Now that stream is online and PPC is a great way to generate new customers!

 

 

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