What is Pay-Per-Click (PPC) Advertising and Its Benefits

Updated: Aug 17


What is pay-per-click (PPC) advertising?

PPC or pay-per-click is a form of advertising where advertisers place their ad on a host-platform such as search engines e.g google, yahoo etc. Every time a specific keyword is searched, the advertisement will show but only once their advertisements are clicked on do the advertisers incur a fee.


There are many forms of PPC advertising, with search engine advertising being one of the most common. If the user clicks on the advertisement, this will typically take the user to a page where they can purchase or find more about the product / service.


How does it work?

Initially, the advertiser has to bid on specific keywords that when searched, will show a link to their advertisement. These keywords need to be as relevant and applicable to the product/service as possible as this will result in the most clicks. Additionally, advertisers have to bid on keywords by indicating the maximum amount they would spend on an advertising spot under that keyword as many advertisers are competing for their ad to appear at the top of the web page.


Therefore, when the users search includes a keyword, the host-platform then does an automated auction of all the ads which considers the bid offer, quality of the ad and its relevance to the keyword to determine which ads will appear and in what order. Advertisers use google ads to submit their keywords and bids.


Core Benefits:

  • Reaches your target audience

You can specify the demographics such as age, location, device to target your preferred audience. This increases the effectiveness of the PPC campaign as you will be able to see which audience reacts best to your product.

  • Cost Effective

You have full control over your budget as you determine your maximum bids. The fees you pay on clicks are also very minimal in comparison if you receive a purchase of the product / service.


Furthermore, PPC increases brand reputation as many will see your AD but may not click it, therefore you will not be charged but your company will gain more exposure.

  • Results are easily measurable and trackable

PPC advertising is linked with google Ads and analytics which tracks a range of statistics where you will be able to more deeply track user behaviour and therefore improve your online advertising.

  • PPC can boost your SEO

Through PPC and the analysis on google ads and analytics, you will be able to identify which keywords are performing the best and resulting in most clicks to your website. From this, you can use these specific keywords on your actual website which will optimise your search results and hopefully will organically push your website towards the top of the page.


Conclusion

To sum up, PPC is a very practical way for advertising and attracting traffic for a website. It has many benefits that marketers and businesses could not afford to miss out on, especially if they want to keep up with the fierce competition in this digital marketing industry.


In order to conduct PPC advertising effectively, you may need an agency to really scale your campaign properly as it may be difficult for many to understand what to do with all the data and to filter out all the irrelevant information.



Do you want to know more about PPC advertising or need help with your PPC advertising? Contact us at info@4hk.com.hk

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