The human brain can consume, on average, 250 to 300 words per minute. In that one minute we wish to convey key information, ideas, and factoids about the marketing industry, so today we will talk about what PPC is and how it works.
PPC stands for Pay Per Click and is a form of search advertisement within the web. Adwords is the most used PPC application, being the program that Google uses in order to maintain advertisement across the Google network of sites. Needless to say, it is the most important program for PPC advertisers to get to grips with.
How PPC works is by matching keywords with advertisement parameters set within Adwords. To put this simply, the advertiser decides who their target audience is, chooses the search term their target audience will most likely search for, and then sets up an advert so that when that search term is entered then the advert shows.
Who ranks where in Adwords is judged by two separate metrics. The first of these is the monetary bid. The bid value is the maximum amount the advertiser is prepared to spend on each click. This is not necessarily the amount that will be paid, as the CPC (Cost Per Click) will vary depending on what competitors are paying. If you set your maximum bid at £0.40 for a search term, but your competitor is only bidding £0.30 then the CPC will be £0.31. Just because £0.40 is the maximum you are prepared to spend does not necessarily make it the default amount you will pay.
The second aspect is the quality of the landing page associated with the advert. In other words, if the advert is for shoes and its landing page is about shoes, then the landing page will be seen as relevant and thus have a higher quality. If the landing page however is about pizza, then the quality will be lower and thus Google will not rank it.
PPC can be a cruel mistress, but when optimised correctly, it can prove a great benefit for any company.