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FREE online PPC course: PPC Fundamentals Course with Joel Bondorowsky 

What is Pay Per Click

36 lessons


What is Pay Per Click

PPC, or Pay Per Click advertising, is exactly what it sounds like. It is a form of advertising where the advertiser pays for each click through to their website. The cost of each click will vary depending on a number of factors, which we will look at in later lessons.

For now, it's enough for us to know that PPC is a type of advertising used by businesses or organizations looking to increase traffic, sales or even inquiries from their target customer base. The key thing to remember is that each click costs the business something.

What is the purpose of Pay Per Click advertising?

The goal of PPC sounds pretty straightforward. Ultimately, what you're aiming for is to receive more back - in terms of sales, leads, or something else of value to your business - than what you paid for each click. Unfortunately, when it comes to the internet, which is highly complex, it's rarely as simple at that.

Now, I'm going to suggest something here that I'd like you to think about as we go through the rest of this lesson: the most important thing about that click is what's behind it. What is the motivating force that enticed the internet user to click on your ad?

While you're thinking about that, let's continue with the lesson.

Why Pay Per Click?

The internet is composed of over a billion websites and users. These websites can be segmented in a countless number of ways, reflecting the billions of users who consume them.

These segments can be further segmented to produce an infinite number of ways to categorize and segment internet users as well as to categorize the billion websites they are consuming. Think about it: an infinite number of ways.

When you consider this in terms of advertising your business, suddenly it seems like a gargantuan task that makes your head spin. With seemingly endless possibilities, how can you find a way to only pay for advertising that reaches your target audience?

This is why it is essential that you understand the intricacies of PPC advertising.

Let's take a more in-depth look at this.

How does Pay Per Click work?

With PPC, you choose segments of internet users and select a price you're willing to pay each time a user clicks on an ad leading to your website.

Every click to your website has a chance to convert to a sale. Therefore, every click has value. For Pay Per Click to be profitable, the cost per click needs to be less than the potential value the click has for the advertiser.

One of the most important aspects of running successful PPC campaigns comes from understanding the different tools at your disposal. Their function is to assist you in targeting the right users — the users with the intent to buy what you are selling. The ad the user sees entices them to click either by offering them what they are looking for or by sparking their interest with something else that captures their attention. Remember, your ad is in competition with the billions of websites on the internet.

A little while ago, I stated that the most important thing about a click is the motivating force that drove the user to make the click to your site in the first place. I hope you figured out what might motivate your customers to click on your ad.

I also stated that the more than 1 billion internet users out there can be divided into a countless number of segments, making getting your PPC campaign right more important than ever.

In the next lesson, I will explain the tools available through the advertising platforms which will target the right users with your ads. Each platform has the ability to target users differently, and we'll be looking at this in more detail.

What is Pay Per Click? Lesson Summary

To recap, in this lesson, we took a look at what we mean by Pay Per Click and we gave you an overview of how PPC works – in theory! We also explained why it's such a useful tool for businesses trying to get their products or services in front of their target audience.