Introduction to pay per clicks

If you are searching for paperclips unfortunately you are in the wrong place :) On the other hand, if you are interested in learning more about online advertisement, more specifically on PPC (Pay Per Clicks) you have come to the right place.

A commonly asked question regarding online advertisement is why should I use online advertisement instead of the usual print , radio, TV advertisement etc.? What are the benefits? The main factors which differs online advertisement from traditional media is the ability to advertise your product or service to people who are likely to be interested. This makes sure that your investment is targeted towards your specific market. I don’t know about you but I’d rather spend my budget effectively on the people who are likely to be interested in my product rather than just anyone. But wait that’s not even the best part of PPC. You only pay when people actually click on your advert. This creates traffic to your website which is a major plus to websites which are not search engine optimized and hence ranking low. To learn more on SEO visit Search Engine Optimization Introduction as I will not go into that in this blog :)

But what is Pay Per Click and what does it do? PPC allows the advertiser to have an advert on a search engine such as Google or a specific website such as Facebook and your advert is displayed to people with common interests which are predetermined by you. How is this even possible you may ask? Well before the advert is published, PPC platforms such as the most popular one Google AdWords allows you to target your market segment by the following:

  • keywords input which are words or phrases relevant to your product
  • location of advert on specific sites or search engines
  • age, geographical location and language segmentation
  • devices such as mobile phones, tablets or desktops and much more

To find such relative information and know what to use might sound a bit overwhelming at first but you only have to ask yourself three simple questions to be able to create your own effective marketing PPC advertisement.

  • To whom is my advertised product aimed at?
  • Why am I investing in an advert?
  • What is my budget?

Is your product aimed for children or for teens? Will I be able to export my product to other countries? because if not it’s a waste of money to promote your product abroad. Are you looking for brand exposure or product sales? What am I willing to spend? How much does your product cost? because if your product costs 50 cents it’s not worth it to spend 3 euros per click and thus you have to build a budget relation between the profit you can make and advertisement costs and so on.

How does it work? PPC advertisement has a slightly different paying system than traditional advertisement. Instead of listing a budget and simply showing your advert together with your competitors advert on webpages, what Google does is it allows you to enter your daily budget and how much you are a willing to pay per click. Now the amount that you enter isn’t necessarily the amount that you will spend because google only charges you enough to beat the competitor below you, so essentially the amount you enter is a bid.

Just to give you a simple example, consider John who bids 3 euro, Mary who bids 2 euro and Jane who bid 1 euro. John would only have to pay 2 euro while Mary would have to pay 1 euro. Jane has to either improve her advert quality factor, which we will talk about later on, or she isn’t allowed to display her advert unless she bids more. Using this system Google ranks your advert (together with other factors) and thus you only have to pay enough to surpass competition.

You know what the best part actually is? You can pay less and get more priority than your competitors which in turn shows your advert first before that of the competitors. How?  Google doesn’t just rate your advert on your bidding amount. It actually rates it also on the quality factor of your ad and how relevant your ad is to the products that you sell. This might sound a bit complex but do not worry, we will look into this further as we go along 😉

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