When speaking about online advertising one of the most known methods is PPC. PPC stands for Pay-Per-Click. In this method advertiser pays only when someone clicks his/her ad.
Most known PPC program is Google’s Adwords. It is very vital tool for many advertisers because Google is most known search engines around Internet and it has high potential to bring huge amount of visitors.
In this article we are going to use Google Adwords as an example of PPC advertising program!
How it works?
In PPC, advertiser bids on keyword phrases. Each time when a visitor types a keyword phrase in search engine advertiser’s ad will be displayed but only if advertiser has bided enough high for that specific keyword phrase. For which result page ad will be displayed there are facts that are effecting to it.
Each unique keyword phrase has its own bid price. The bid price of each keyword phrase is not constant and it changes sometimes. Reason for this is competition between advertisers. Google has own formula how to determine the cost of each keyword. Each keyword phrase price is possible to get less or more expensive. Fact that is effecting to the price of keyword phrase is called “Quality Score”.
The better Quality Score you have the cheaper your keyword bids will be. There are certain facts that are effecting to the Quality Score. The facts are:
- The historical Clickthrough Rate (CTR) of keyword
- Adwords account history
- Your account’s performance in the geographical region where your ad is displayed
- The historical CTR of the display URLs in that specific ad group
- The quality of your landing page
- The relevance of keyword to the ads
- The relevance of keyword and the matched ad to search query
- Other factors
For more detailed information about above facts please visit Google Adwords Help section by clicking here.
Because many advertisers enjoys from this simple method which brings very good results to their campaigns, the competition has increased tremendously and nowadays it is more difficult to be become successful advertiser than before.
Creating an ad consists from following facts:
- Headline
- Ad description
- Display URL
- Destination URL
- Selecting Geographical location (i.e. where you want your ad to be displayed)
- Selecting keywords
- Confirming of completed ad
Each above fact is required in order to complete and active an ad. There are rules for most of above facts. For example all kind of offensive headlines are not permitted.
Most known PPC programs around the Internet
Here is listed most known PPC programs:
[...] PPC Advertising [...]
[...] Basics of PPC Advertising [...]