In a nutshell, Pay-Per-Click Advertising (aka PPC) is a method of paid advertising that you only pay for once your advertised link has been clicked on.

Pay-Per-Click is also known as Cost-Per-Click (aka CPC) and is defined by Wikipedia as “Pay-per-click ($) = Advertising cost ($) / Ads Clicked (#)”.

Platforms used for PPC advertising is Google (i.e. the Google Ads you see at the top and bottom of the search page when you’re looking for something) and Bing.

I still don’t understand

Pay-Per-Click advertising allows your business to hold a prominent position in the search results – for your strategically targeted keywords – but the process is a bit like an auction. You set-up your Google AdWords account to create ads and tell Google how much you are willing to spend for someone to click on your Ad.

Your ranking in the paid sections of the search results is dependent on how many other businesses are also paying for the same keyword(s) and how much you are willing to pay for each click to your website, hence the “auction”. Bid the most and you are most likely to rank in top 3 positions.

The search user is taken to your nominated webpage once your paid link has been clicked on, then Google charges you at your maximum bid amount.

Can you give me an example?

Say you want to be seen for the keyword “home builder” and you are willing to pay a maximum of $1.20 per click to your website. Say you are the highest bidder for that keyword at $1.20 per click and you rank at the top of the search results and 100 people click on your PPC listing – then the PPC service will charge you a maximum of $120.00 for those clicks.

That sounds easy

Well, yes and no. It is easy in the sense that once you have the Google AdWords account set-up for online visibility, you can start generating traffic almost immediately.

But, there is extensive research that needs to be involved first to make sure you are making the right impression for your product and/or service and that you are being seen where you need to be; as well as understanding which other businesses are also bidding for the same keywords and for how much. 

Are there any penalties or boosters?

Yes, you need to be aware of the search engines Quality Score, such as your ad, keywords, landing page copy, click metrics, on-site usage metrics and more.

Depending on how you manage each of the factors, based on a sliding scale, depends on whether the search engines increase or decrease your bid amount for you to gain a specific position in the results.

Can I set and forget?

No, no, no. Definitely not.  Your ad requires regular management to avoid you paying more money than you need to for each CPC and from underperforming.

Keeping a pulse on your Ad means that you can see if another business is outbidding you; if you can lower the bid price and still remain in the top 3 positions; see if your ideal customer is actually using those keywords.

Essentially a Pay-Per-Click campaign is a rinse and repeat scenario of “Bid. Click. Measure. Adjust”.

It is easy to think that introducing a Pay-Per-Click strategy is a money grab and will bring in so many visitors to your site. However, at the end of the day – it still comes down to quality. Quality in your ad’s listing and the details you provide and quality on your website. The quality of those leads and conversions is more important for your return on investment (ROI) rather than clicks.

Similar to Facebook Page likes, quality of your audience is more important than the number of likes on your page.

If you are confident that you have a handle on Google AdWords – ranking high, not paying too much and getting traffic to your website – then, by all means, go ahead. BUT, if you are struggling to understand the concept and frightful of paying too much and damaging your brand – then, by all means, contact us on 1800 429 539 to discuss.

Hayley recently earned her Google AdWords Certification to ensure that all our customers are receiving high-quality support to ensure that their ads are performing for them.