Glossary keyword - Pay Per Click (PPC)

Pay Per Click (PPC)

PPC is an abbreviation for “pay-per-click.” Introduced by Google, PPC is a kind of digital content marketing that makes advertisers pay fees every time their ad is clicked. Instead of earning visits organically, the advertisers buy visitors. Using search engine advertisements is the most favored way of using pay per click. The feature lets the advertiser tender for an ad spot in the search engine’s sponsored links when a person does a search using a keyword that is related to the service offering. 

Purpose of PPC

Pay-per-click can be used to measure the profitability and cost-effectiveness of the internet marketing sphere. PPC is more effective than the cost per impression because it displays data on how active the ad was. The clicks are a mere way of measuring the level of interest and attention towards the advertisement. Especially if the primary goal of the advertisement was to gain a click towards the actual destination, then pay-per-click is the way to go. After a particular goal of web impressions are reached, the exact placement and quality of the ad will have an effect on the click-through rate and displayed pay-per-click results. 

Interpretation 


A simple formula to calculate pay per click (PPC) is dividing the ad costs by the number of clicks. Like so: Pay per click= Ad costs/ Number of Ads clicked. The two primary models for settling PPC are bid-based and flat-rate. Regardless of the model, the advertiser has to observe the potential value of a click that a source can give. The cost reflects the individual the advertiser can expect to visit their website. Along with the revenue, the advertiser is expected to receive from visits. Many other factors affect PPC campaigns, like; the interest of the audience and what they have entered into the search engines, their locations, the date and time, and more.

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