If you have ever noticed the advertisements that appear alongside search results on Google and other Search Engines.
What Is Pay-Per-Click Advertising?
PPC is an online advertising model in which advertisers pay each time a user clicks on one of their online ads.
These ads appear when people search for things online using a search engine like Google, Bing, Yahoo etc especially when they are looking to buy something. This could be anything like "pizza near me" to a local service search like a plumber near to me or a high-end item like enterprise software. All of these searches trigger pay-per-click ads.
In pay-per-click advertising, businesses running ads are only charged when a user actually clicks on their ad, hence the name “pay-per-click.”
Other forms of PPC advertising include display advertising (typically, serving banner ads) and remarketing.
How Keywords Work in Pay-Per-Click Advertising
As its name implies, the Ad Auction is a bidding system. This means that advertisers must bid on the terms they want to “trigger,” or display, their ads. These terms are known as keywords.
For example, If you are having a mobile shop and selling mobiles and mobile equipment’s. A user is looking to buy a new smart phone and enters smart phone model in search engines to find retailers offering these items.
At the moment the user submits their search query, the search engine performs the complex algorithmic calculations that the Ad Auction is based upon. This determines which ads are displayed, in which order, and by which advertiser. Since you have to pay for each click on your ads, it's imperative to only bid on keywords that are relevant to your business, so you can be sure to get ROI from your ad spend.
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