What is Pay Per Click?

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While searching the internet I’m sure you have come across a page that had “sponsored links”. Or lets look at a search engine page after you actually typed something in and clicked go. The results come back with paid advertising on the top and right hand side. Those little three line ads. The left or middle is the unpaid or organic search results.These are determined relevant by the search engine. Back to the ads.Those are the pay per clicks ads.

So people are paying to have their ad show up on the top or on the right side when you search for something. The kicker is that they only pay when someone clicks on their ad. That’s why its called pay per click. They bid on what the click is worth to them and only pay when someone actually clicks on the ad.

So lets go a little deeper. How do the ads show up? Well first the advertiser determines his market. Who does he want to sell his product or service to? What keywords or phrases would a potential buyer type into the search engine when looking for his product. This is his keyword list. Some advertisers build lists of more than hundreds of keywords.

The advertiser will enter the list of keywords they want their ad to show up for. They then bid on what that keyword or phrase is worth to them. For instance they may bid low on a broad keyword like “cars” But bid more on a more specific phrase like “race cars” The thought here is that a more specific phrase means the searcher is closer to buying.

So simply put the more you bid on a keyword the high you will show in the advertising results. This is scientifically proven to get more clicks, or a better click through rate. The goal is to get the people who are close to buying to click your ad. They then will get sent to you website in hopes for a sale. Remember we only pay when someone actually clicks on the ad and not the impression, which is how many times the ad shows.

PPC allows the marketer to target a very specific group of people or buyers. Instead of say a billboard that thousands may pass but how many are actually the market the advertiser is looking for? Would your grandma driving by want to buy the beer on the billboard? Not very targeted. Where as the pay per click advertiser only pays when someone searches for their keyword and then actually clicks on the ad.

This is an awesome way of driving targeted buyers to your product. The problem here is its a little more complicated than that. An inexperience advertiser can lose money quicker than they can put it into the advertising account. If you need more info feel free to email me or check out Google Secret Loophole. Its a very expansive pay per click program that teaches you everything start to finish. It even comes with proprietary software to help you with your advertising.

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