How Pay Per Click (PPC) Advertising Works?

PPC (Pay Per Click) is an internet advertising technique used for direct traffic to their websites. Here, Advertisers bid on particular keyword phrases relevant to their target business website, set the price on those keyword phrases for each sales lead and pay only when customers click through to their site, leading to a high return on investment (ROI).

To set up a PPC campaign, one need to prepare a campaign ad with relevant keywords with a click provider and then these will be shown on search engine results in form of an advertisement linked with your business website. This will generate a realistic traffic to target business.

Research shows the highest ROI from PPC when compared with e-mail, banners & other means of online advertising.

PPC Search Engine Marketing Services Include:

• Keyword Research and Analysis
  
• PPC Content Writing
• Landing Page Evaluation and Analysis of Traffic
• PPC Bid Management and Campaign Setup
• Tracking ROI

PPC can be calculated by dividing the advertising cost by the number of clicks generated from the advertisement. i,e.:

Pay Per Click (PPC) = Advertising cost ÷ Ads clicked

Some of the commonly used terms in PPC campaigning are cost per click, cost per impression, cost per order, click through rate, cost per acquisition, cost per conversion and many more.

Cost Per Click(CPC) is the amount of money a person pays search engines for a single click on its advertisement that brings one visit to its website.

Cost Per Impression(CPI) is the cost of advertising campaigns where a person pay each time an ad is displayed in the search engine results.

Cost Per Order(CPO) is the cost of internet advertising divided by the number of orders.

Click Through Rate(CTR) is the number of clicks on an ad divided by the number of times the ad is shown, expressed in terms of percentage.

Cost Per Acquisition(CPA) is an alternative pricing technique that is based on fees of conversions rather than clicks.

Cost Per Conversion is the total cost of generating traffic divided by the total number of conversions.

Thus, PPC attracts highly targeted pre-qualified traffic, immediate search visibility, local to global exposure, maximum rate of return and provide excellent opportunities for remarketing.