Understanding Pay per Click (PPC)

Understanding Pay per Click (PPC)

Today, the world of advertising and marketing has changed, gone are those days of Posters and banners, Thanks to Google Adwords and the internet marketing. Online presence of your business matters more than the offline presence, in-fact more than half of todays business/startups have only virtual presence which is quite necessary in todays competitive environment.

The main reason why people are switch from traditional advertising to online is that its cheap and more effective, you can target your audience and calculate the ROI very easily.

In this blog you will mainly read about Adwords because Google is where you search and advertise.

1. What is Cost-per-Click(CPC)?

Cost per click is the amount you pay for each click on your ads. When you advertise on Google Adwords, your ads either appear above the organic results or on side of your page, if a customer clicks on your ad, then it redirects it to specific page and you pay google for it.

2. How Much do you pay?

You will have to bid the amount for your ad. Set out a monthly budget and then see what is your daily spending limit and big accordingly. You can either choose an automatic bidding where google will take care of your budget or you can choose manual budget.

3. How does it work? If I will pay more will my Ad get higher ranking?

No, It does not work this way. The ad rank is decided on the quality score and the amount of your bid. Ad’s with quality content, good landing page, relevance and originality will get higher quality score and will get higher rank. If your quality score is less and bidding amount is less, then your ad will not make it to the top list and might not be displayed. Ad’s only with high quality scores are placed.

4. So, what is the actual cost-per-click(CPC)

The actual CPC is often less than your bidding amount. Remember As’s with high quality scores are only displayed. Your Actual CPC depends on your ad quality score, if the quality score is  more you will pay less than your actual bidding. The maximum you will pay is what’s minimally required to hold your position for ad.

The tutorial video by google which show you how to bid for your ad and how quality score is decided and what is the actual amount you pay.