How Does Pay Per Click Advertising Work

At some point in time, you will definitely hear about pay per click advertising. This is something which all big brands use to drive traffic to their websites. It is actually the biggest form of paid traffic. And we know that paid traffic is the quickest way to drive traffic to your website. But it does cost money to buy paid traffic and pay per click advertising is one such method.

What is Pay Per Click Advertising?

You must have come across Sponsored results on search engines and other content websites. These are paid ads which are typically shown just above the search results and on the right side. The paid ads can be of two types. First type is when the advertiser pays on the number of view and typically it is on per thousand views basis.

The second type is pay per click. In this case the advertiser only pays when the user actually clicks on the ad. And different advertiser bid for keywords against which their ads are shown. Since a large number of advertisers place their bids for popular keywords, therefore, the search engines normally use two criterion for deciding the the cost of a click to the advertiser. This include the quality score of the ad which is determined by the CTR or click through rate and the number of bids.

Pay per click advertising can be scaled up as high as possible. The only thing to do is to find the suitable return on investment. In order to succeeds with pay per click advertising, you may take care of the following aspects carefully:

  • Test with multiple keywords and ad texts to split test and know which ads are giving you the best return on investment.
  • Once you find a good return on investment, try to invest more money to scale up and get more profits.
  • You can decrease cost of pay per click advertising clicks by improving the quality score of the ads
  • Improve your landing page and test with different versions of it to further increase your conversion rate.
  • Improve your page loading speed because search engines also take into account the landing page speed to assign quality score.

Currently the top three platforms that you can use for pay per click advertising are: Google Adwords, Bing Ads and Facebook. Try and experiment. But be careful that you need to really research well and set up your campaigns right. Otherwise you risk losing your money really quickly with pay per click advertising.

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