The beginner’s guide to pay per click advertising

Pay per click (PPC) is a paid advertising tactic where the advertiser pays a publisher for every click on an ad.

PPC includes a variety of text, rich-media or social media ads – some displayed on search networks, such as the Google and display network, such as YouTube or Gmail. With search networks, advertisers typically bid on keyword phrases relevant to their target market. In contrast, content sites usually charge a fixed price per click rather than use a bidding system.

“Banner” ads, also known as PPC “display” advertisements are shown on web sites with related content that have agreed to show ads and are typically not pay-per-click advertising.

PPC has an advantage over cost per impression in that it conveys information about the ad’s effectiveness. Cost per click is calculated by dividing the cost of a paid advertising campaign by the number of clicks using the following formula: Cost per click = Advertising cost / number of clicks.

Here are a few aspects to consider when you are just getting started:

• Set clear goals and measurable objectives

• Define your budget and start small

• Focus on displaying your ads where your target audience is likely to frequently visit

• Compare your cost per click to revenue generated

• Focus on metrics that are impacting your bottom line

• Perform a detailed keyword research before setting up your ads

• Experiment with different long-tail keywords

• Design your ads to attract the right audience

• Set up A/B testing

• Be aware of negative keywords

• Avoid using broad match on all your keywords

• Don’t direct all ads to your homepage