How Do PPC Ads Work?

In the world of e-commerce and business websites, more website traffic generally equals higher profits. There are two main approaches to boosting website traffic. You can do it organically by using inbound marketing techniques that attract visitors to your website, such as content marketing. Or you can use paid advertisements such as pay per click (PPC) ads. Both approaches can be very effective when done properly, and ideally, you’ll use them together.

Defining PPC Ads

Google AdWords—the go-to advertising portal for Internet marketers—has set up pay per click ads so that advertisers can pay to attract more website visitors. You can see these paid ads located at the top of search engine results pages (SERPs) on Google. For example, try typing “pet stores” into Google and check out the results. You should see one or more PPC ads at the top. These are indicated by a small, bordered icon that reads “Ad.”

Understanding How PPC Works

With many forms of advertisement, the advertiser pays just to display the ad. Consider billboards or print newspaper ads, for example. PPC is different. Advertisers will only pay a fee when a Google user clicks on the ad, rather than when an ad is displayed. This begs the question: How does Google decide which ads to display for certain searches? Google determines this based on two main factors. The first is the CPC bid, which is the highest amount that the advertiser is willing to pay for a click. All advertisers must bid on the keywords they want to use. The second is the advertiser’s quality score. The quality score is determined based on factors like the quality of the landing page, product relevance, and click-through rate.

Anchor Wave is your source for complete Internet marketing services, including PPC campaign management. Our team of experts also provides engaging content marketing and smart website design to make your business stand out from its competitors. Contact our office in Tucson at (520) 622-3731, and let us know how we can take your company’s marketing to the next level.

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