How does click paid work

By understanding how PPC works, users have a much better chance of making a profit and having a successful campaign. So just how does pay per click advertising work? When it comes to PPC, there are 3 main parties.

Advertisers, the middle man or PPC network and publishers. Advertisers are businesses or individuals who use PPC in order to promote their products and services. Whenever a visitor clicks on their advert, they are charged money by the network.

Now, depending on the keyword, they are targeting and the competition, this will determine how much they pay per click. It can be anything from a few pence up to tens of pounds. For now, all you need to know is there are plenty of advertisers out there all competing for the same keyword. Publishers are individuals who team up with PPC networks in order to earn revenue from displaying their adverts.

Almost all publishers own some website which they can display adverts on. When website visitors click on these adverts, publishers receive a split of the revenue.

How much they receive in the end depends on what keyword the user clicked and what the average bid of that keyword was.

If your ads and landing pages are useful and satisfying to users, Google charges you less per click, leading to higher profits for your business. Google Ads is the single most popular PPC advertising system in the world. Google Ads operates on a pay-per-click model, in which users bid on keywords and pay for each click on their advertisements. Every time a search is initiated, Google digs into the pool of Ads advertisers and chooses a set of winners to appear in the valuable ad space on its search results page.

How are your Google Ads really performing? This system allows winning advertisers to reach potential customers at a cost that fits their budget. The below infographic illustrates how this auction system works. Conducting PPC marketing through Google Ads is particularly valuable because, as the most popular search engine, Google gets massive amounts of traffic and therefore delivers the most impressions and clicks to your ads.

How often your PPC ads appear depends on which keywords and match types you select. Budgets are set at the campaign level and can be exceeded daily, but will not be overspent monthly.

Budgets should be set according to the overall account strategy, but bids are a more precise way of controlling spend. Many advertisers use automated bidding strategies. These allow advertisers to set a specific goal for their campaigns and then have the advertising platform determine the most appropriate bid for each auction.

Due to the RTB system, the actual amount paid by the advertiser is dependent on competitor activity and ad rank, not just the maximum bid. Search engines look at other factors to determine which ads should be at the top and most valuable spot on the SERP. Search engines have their own particular ways of factoring in other elements to determine ad rank.

Quality Score is a metric that determines ad relevance. Search engines penalize advertisers who bid on keywords with low Quality Scores by rarely showing their ads, even if they have high bids. The web page must be relevant to the user, load quickly, and provide an overall smooth user experience.

These are valuable because different variations of ad copy, for example, might perform better for one group of users than for another. Using remarketing tools that allow for more specific ad copy messaging and adjusted budgets, it can also be possible to target or exclude past visitors to a website who do follow-up searches.

Bids can be automatically adjusted for keywords based on targeting options, giving advertisers more control over traffic and spend by bidding when customers are more valuable to the business. The real end game is to obtain conversions. These are the actions that advertisers want users to complete after clicking on their ad and depend on the type of business being advertised. Platforms like Google Ads can track conversions using a snippet of code placed into the source code of the conversion page which is reached after conversion, like a thank you page to collect conversion data.