What is PPC & How Does PPC Advertising Works?



With this internet advertising guide, you will bring new customers to your business. We’re here to guide and show you how to market your company to Internet customers looking specifically for your product/service. Whether you are a seasoned Internet user or brand new to the net, you will have an Internet advertising campaign set up within 30 minutes! Immediately after set up, potential customers will be able to do a Google Search and see your ad displayed in one of the top positions, and this can only be possible via an effective PPC ads campaign. 

Before deep-diving into the topic, first, you need to understand what are PPC ads. Let’s start:

What are PPC Ads?

ppc example
                                                                    Source: Google Search


A pay-per-click advertisement is a technique where the advertiser can publish their ads on a particular keyword.  Search term and/or search phrase that directly applies to their product or service.

And, they have their product or service listing appear whenever their chosen keyword, search term, and/or search phrase is searched on the search engine.

The costs and/or the pay-per-click part of this search method only come into play if the person searching, actually clicks on the advertiser’s listing. Thereby making him or her directly to the advertiser’s website.

The advertiser’s account is charged the agreed amount for the search (amounts can be as little as 1 cent). Example:

  • If your account has $100. You bid 3 cents on the keyword “Web design”. When someone searches for “Web Design” they would see your website as one of the results. If they click on your link and get to your website, your account would be charged 3 cents. Your new account balance would be $99.97.

This method has proven to be very successful and beneficial for both advertisers and searchers alike.

Advertisers benefit because they know they are getting targeted traffic for search terms they select. And at the price, they want to pay-per-click.

Advertisers know that the people who click on their listing are people who were specifically searching for their product or service as determined by the selected search term.

Searchers benefit because they get search results that are directly related to what they are looking for on the web. And not just what some automated robot or spider thought would be a good match for them.

How Does PPC Advertising Work?


With PPC ads, you choose keywords or keyphrases that you think people will type into their web browser when looking for your product or service. When potential customers type the keywords/key phrases that you have set up in your campaign, an ad for your site is listed.

When they click on your ad, they are sent to your website. And you pay a small cost for that one click. You are only billed for the clicks that you get.

Cost per Click (CPC) is determined by the amount you are willing to “bid” for that click. For example, if your business sold cell phones and your key phrase was “cell phone”, then your cost per click would be high because you are competing with so many other businesses worldwide. 

Everyone is trying to outbid the other so that they can have their ad appear at the top of the page. Keep in mind that the top bidder always gets their ad listed first.

Why You Should Do Pay Per Click?

ppc ad

Below are a few of the primary reasons to do pay-per-click marketing:

Reason # 1

The Internet is the most widely used source for finding any type of information in the world. More and more businesses are steering clear of print marketing and turning to the Internet.

This is because it continues to prove that it generates business. Let me ask you this; when you want to look up a product or service, do you go to the phone book or the Internet? 

People who are going to the Internet to find their answers are typically clicking one of the first 5 links that are displayed by the search engines. With pay per click, you can be one of those five.

Reason # 2

The second reason you should do pay per click is that it is one of the only forms of advertising that you don’t pay for until a customer comes to your business (via your website, of course.)

Reason # 3

When you do PPC ads Google, (Google) will give you FREE credit card processing. No catch! Here’s how it works; for every dollar that you spend on pay per click, you multiply that number by 10.

And that is how much FREE credit card processing you get. No monthly fees, no transaction fees, no nothing. 

So for example, if you spend $200 per month on pay per click, you will be entitled to $2000 worth of free credit card processing each month. Anything over $2000, is a $0.20 per transaction + a 2% fee (probably better than your current merchant service). 

So take that couple hundred (thousand?) dollars you are using to pay for credit card fees each month and turn it into marketing dollars!

What is the difference between SEO and PPC?

ads and seo

There’s a huge difference between PPC and SEO because PPC is a paid advertising technique where the amount is charged when someone clicks on your published ads.

On the contrary, SEO is an optimization technique where your product or service ranks in Google. It ultimately brings organic traffic without paying.

However, search engine optimization requires a lot of expertise and initial investment to buy backlinks, etc., to rank in Google.

How Do PPC Ads Make Money?


PPC ads make money when the searcher clicks on the advertiser ads and the advertiser pay a fee each time when the searcher clicks their ads. In simple words, it’s a way of buying visits to our sites.


Now that you have a basic understanding of how Pay Per Click search engines work, this site has many resources to help your new campaign. Feel free to leave a comment if you found this post useful. 

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