Understanding Pay Per Click Advertisement

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Much business marketing is carried out online. It offers a cheap way of reaching a large number of people. One type of marketing that is particularly popular amongst big business is Pay Per Click advertising

Transcript of Understanding Pay Per Click Advertisement

Page 1: Understanding Pay Per Click Advertisement

Welcome to The Neotericuk

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Page 2: Understanding Pay Per Click Advertisement

Understanding Pay Per Click Advertisement Much business marketing is carried out online. It offers a cheap way of

reaching a large number of people. One type of marketing that is particularly popular amongst big business is Pay Per Click advertising. It is a relatively old – by internet standards – method of advertising, yet many people don’t know what it is, or if they do know, aren’t sure of how it works. It is a tried and tested model that works, so if you’re in business, and you’re looking for new customers, it’s well worth investigating this model of advertising. Below, we have provided a brief guide to help you to better understand the process.

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What Is Pay Per Click Advertising?

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The first thing to note is that people often refer to Pay Per Click advertising as PPC, and we will continue to use this initialism for the remainder of the article.

PPC is an advertising model whereby a business pays to advertise somewhere on the web – usually a website – and then pays the advertising fee only when someone clicks on their advert. Normally, the click will take that person to the advertised business’s website.

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Most often businesses hire third party PPC management services to undertake a PPC project on their behalf. This is often the best way to do it, as the specifics of PPC can be convoluted and difficult to understand. PPC management services will establish the businesses requirements, establish relevant and popular phrases, and then bid logically in a way that maximises potential sales.

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How Does PPC Work? There are a number of different types of PPC, but the most common,

and the one that you will probably use most often, is Search Engine advertising. When a web user types a certain phrase (usually related to the business advertising, but not necessarily so) the search engine will return a list of the most relevant websites, but they will also return a number of adverts. The search engine Google returns the advert at the top of the page in a slightly shaded box. There are a few things to understand:

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Businesses choose a phrase or word that they think will lead people to click on their advert. For example, a printing company may choose to place an advert when someone types ‘A5 leaflets’ into the search engine (just in case you don’t know, a search engine is a programme that indexes the web. The most common ones are Google, Yahoo and Bing).

Different businesses ‘bid’ for different phrases. For example, you may have 1000 printing companies bidding for ‘A5 leaflets’.

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The company that puts forward the highest bid gets pride of place in the advertising slot on a certain number of searches. For instance if A-Printing pays £100 for a bid, and B-Printing pays £50, then A-printing will appear 100 times at the top of the page when people search, whereas B-printing will appear 50 times at the top of the page when people search. There are many different ways that the adverts are chosen to appear, this is just a basic example to help you to understand.

A business will only pay the advertising fee if someone clicks on the link.

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As mentioned above, there are other methods of PPC. For instance, businesses may bid to appear on a particular website at a specific time of day.

We have provided you with a brief introduction to PPC advertising. If you would like further help and advice, then please visit our PPC management services team at – Neotericuk

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Thanks For Your Time

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