How Pay Per Click Works

Pay per click marketing is a marketing initiative widely used to get the attention of visitors from search engines. On the other hand, this marketing tool is also a way for website owners to earn money online by hosting pay per click ads.

But this doesn’t mean that with the use of this kind of advertising, all will be easy and profitable. This can be problematic too especially if this marketing is managed poorly. The site may have loads of new visitors but if these visits are not converted, then this kind of marketing will be for nothing.

For this reason, it is always recommended that there should be a complete understanding of what this marketing is, and this should be implemented.

So how different is pay per click marketing to other means of advertising?

Pay per click can be done in two ways. Advertisers can post ads to websites and pay the website owner of the rate they have previously agreed every time an online user clicks the ad. It can also be done in a bidding process. This is usually true when an advertiser wants to post an ad on the search engine results page or SERP. If the advertiser wins the bidding for a certain keyword or phrase, his ad will be placed on top of the paid listings in the SERP.

Paid advertisements in the search engine results page are those found on the top of the search results list. It may also appear as boxed texts at the right side of the page. If an advertiser wins a bid for the keywords “mobile phone,” for example, his ad will appear at the top of the page every time an online surfer types “mobile phones” on the search box.

When your ad is ranked at the top of the paid listings, you will then pay for the amount you bid, or the amount you are willing to pay for every click of your ad.

Cost can be calculated such that, if 100 users online click your ad displayed on the search engine results page, you will be charged with the cost per click multiplied by 100, or the number of clicks your ad gets.

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