Pay-Per-Click (PPC) is a form of online advertising in which advertisers pay a fee each time one of their ads is clicked. It is basically used to drive traffic to your website. PPC enables marketers to display ads in the sponsored results section of the search engines results page such as google, yahoo, bing, etc. Advertisers bid on the apparent estimation of a click according to the keyword phrases and audience relevant to their target market and pay when ads are clicked. It is a way of buying visits to your website. Also, the business running ads are only charged when a user actually clicks on their ad. Hence, the term Pay-Per-Click.

If you are into advertising then it is important to know how PPC ads work. As soon as an ad is spot on SERP, an on-the-spot deal takes place for the keyword. There are multiple factors, including bid amount and quality of the ad displayed, decide which ad will appear at the top of the search engine result page. When people type keywords into search engines and if the advertisers are interested in showing ads related to the search query, an auction is set off based on keywords phrases that are bid on by the advertisers. Accounts are used by advertisers to set up their ads such as Google Ads, these accounts are split into campaigns, which are further divided into ad groups.

Let us look into different campaigns of PPC ads:

1. Bidding and budgets:

PPC ads work through campaigns, one such campaign is bids and budgets. The advertisers have to decide how much they are willing to spend on a given keyword if they have to participate in an auction. This can be done by using bidding at the keyword level and by budgets that are set at the campaign level. Budgets are usually set in line with account strategy whereas bids are a more accurate way of spending.

2. Keywords:

Keywords play a major role in PPC ads, as they connect advertisers to users’ search queries. A user types any word in the search box of a search engine to find out the required results, that word is known as query. But keywords are those phrases that the advertisers themselves use to target the users. Advertisers can match the search queries with accuracy depending on the keywords match types that they use to target the audience.

3. Quality score:

Relevance between your ad and your landing page is very essential. The ad relevance is determined by quality score. The advertisers, who bid on keywords with low quality scores by rarely showing their ads are punished by search engines. Hence, it is important that your web page is relevant to the user and includes high-volume keywords.

4. Conversions:

The main and real end game of your PPC ads campaign is to get your target audience to convert. After a user clicks on an ad, advertisers want them to complete conversions. Conversions include, purchasing a service, placing a phone call, etc. it is essential to track conversion in order to know whether a PPC ads campaign is working or not.