02 May

What Is PPC Advertising and How Does It Work?


Do you want to learn what is PPC advertising and how does it work? Read on to find out everything about it! 

PPC advertising requires businesses to pay for their ads when they are clicked by an online user. It’s a unique model of advertising that allows you to expand your online presence and reach targeted audiences with highly relevant ads. Your PPC sponsored ad or post helps you boost your leads, conversions, and profits. The most popular PPC advertising programs are offered by Google, Facebook, and Bing.

Here’s everything you need to know about PPC advertising! 


What Is PPC Advertising?


PPC or pay-per-click advertising is a paid digital advertising model, which requires advertisers to pay a fee every time an internet user clicks on their ad. Businesses create specific ads and then bid on keywords or search phrases related to those ads at an online auction. It allows them to display their ads at a high position on search engine result pages. It’s essentially a targeted form of buying web visits with the aim of boosting conversions.

There are various types of PPC ads, including search ads, local ads, display ads, and remarketing ads. These ads can show up on search engines, web pages, social media platforms, and mobile apps. They are designed to look similar to the content around them. For instance, an ad on a social media channel, such as Instagram, will have the same format or layout as any other post, with the exception of a “sponsored” or “promoted” tag on it. 

How Does PPC Work?

In PPC advertising, ads are subject to an automated bidding system called Ad Auction. Then, the foremost search engines determine the authority and relevance of the ads that appear on their results page. 

At a PPC auction, advertisers bid on keywords that are relevant to their business niche. These keywords are search terms that they want to target or display in their ads. For instance, if your business sells photography gear such as camera lenses, you will naturally want to bid on the keyword, “best camera lenses.”

You can use keyword research tools to find relevant keywords with appropriate volume and the average cost per click. Once you have your keywords, you need to create ads and set them up in the search engine platforms with the keywords you want to trigger them. 

Then, you need to set the bids for how high up you want your ad to appear in the ad section of the search results. Apart from the initial bids, ad platforms also continue to look at factors such as ad extensions and quality scores to determine which ad is best suited for the highest rank. Your ad’s quality score is based on its relevance, click-through rate, and landing page experience. 

When a user enters a search query, search engines use a complex algorithm based on the Ad Auction to display the ads relevant to the user’s search query to them. These calculations also determine the position of the ads. 

Now that you have an answer to your question, “what is PPC and how does it work,” let’s take a look at why you should use this marketing channel:

Reasons to Use PPC Advertising

Here are some compelling benefits of using pay-per-click advertising:

  • PPC is measurable, with designated KPIs that you can track. It will enable you to see how your campaigns are performing in terms of clicks, conversions, traffic, budgeting correlations, and more metrics. 
  • It offers revealing insights into the search patterns of your customers. 
  • PPC campaigns are quick to set up.
  • You have some flexibility in terms of budget spending. For instance, depending on how your campaign is performing, you can scale up or down quickly.
  • It offers numerous targeting options, including keywords and key demographics. 
  • The ads can be integrated on all platforms, including mobile apps. 


Now that you know the basics of PPC advertising and why you should use it, get in touch with Marketing Tiki to run successful PPC campaigns with measurable, profitable results