PPC 101: Pay-Per-Click basics

Anyone who has surfed the web has seen their share of ads. Some good, some not so good. For many of us, we’ve conditioned ourselves to ignore most ads.

So why do advertisers still make ads? Because they work! The law of large numbers reinforce that only a small number of visitors have to click on these ads for the advertiser to make a profit. The goal of any ad, especially in the PPC (pay-per-click) world, is to get the message in front of the right people.

I actually just got off the phone with one my partners about a client list that we just received from a software giant (they’re headquartered in the Pacific Northwest — you figure it out!). We’re in the process of identifying our audience for a workshop that we’re hosting next month. After reviewing their client list, I felt that it wasn’t targeted enough. One thing I said was that there’s a big difference between 1,000 emails that they’ve collected over time and 100 emails of people who are ready and willing to spend money on our solution today. I, of course, would much rather have the latter. Just as with PPC, our numbers will improve drastically with the right targeted audience.

As I wrote in my Types of Affiliate Marketing post, PPC, aka CPC (cost per click), advertisers pay every single time their ad is clicked. Below is an excerpt as written for an affiliate marketer:

Cost Per Click (CPC)/Pay Per Click (PPC)

One of the more well-known affiliate types, CPC pays you every time a visitor clicks on the ad. Although this seems like a surefire way to get paid by simply abusing the ads, the top search engines have technology to prevent this from happening.

Anyone can create their own PPC ad campaign. The trick is getting it right, which takes time to perfect; after all, as a PPC advertiser, you are paying for every click, even if people don’t actually do anything when they get to your site. Obviously, you’d rather pay for relevant clicks. That means for your pet site, for instance, you want to bring as many people who want to spend money on their pets as possible. A big part of that is creating a keyword list that is appropriate for your targeted audience.

In my next post, I’ll give you a step-by-step process on how to create your own PPC ad campaign.

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