How Google Pay-Per-Click Ads Work

As a business owner, you know how every dollar you make is spent, so why would you put money towards advertising without knowing how pay-per-click ads work?

Pay-Per-Click ads or PPC can be confusing but they don’t have to be. We are here to help.

Here is a quick explanation of what they are & how they work.

What is PPC?  

It’s an online advertising strategy in which you only pay when people click on your ad. It’s often considered the “go to” method for online advertisers because they don’t want to pay just to display their ad. They want to pay only when people take action based on their ad.  

How much does PPC Cost? 

The cost of PPC ads depend on a multitude of things, however there are two main things that influence the cost.

1. You – Google allows you to set an average daily budget so that your costs don’t get out of control.
2. Keywords – Some keywords cost more than others. Why? Because there are more companies bidding on those words.  For Example, if you want to run an ad with “Auto Repair” as the keyword, you can be sure that it’s going to cost a lot more per click than an ad with “Windshield Repair” as the keyword. That’s because more advertisers are bidding for “Auto Repair” than “Windshield Repair.”  To learn more Google’s Ad Auction, click here.

How does a Pay-Per-Click Auction Work? 

Your ad placement is also determined by a number of things but here are the two main things affected when you are shown.

1. Your bid and average daily budget – If you’ve already used most of your budget, your ad won’t show on the keywords that cost the most.
2. The ad quality – Google determines the quality of your ad by evaluating its relevance to your keywords, your landing page relevance, and the ad’s click-through rate.

To learn more about how Google’s Auction works, click here.

Now that you have a better understanding about how PPC Ads work, ask your PPC manager questions and make sure you are getting the most out of your money.

If you feel like you aren’t getting the results you should be, reach out to us. For more information about what we offer in our PPC packages visit our Services & Pricing page.

With our personalized ads, daily monitoring, optimizations, we guarantee results and fast!