What is PPC? Beginner’s Guide to Pay Per Click Advertising

Have you ever wondered what the best way to increase the traffic on your website and optimize your search engine results, as well as increase the revenue from the ads on your site is? This is a common problem for aspiring entrepreneurs and the one we will try to deal with by presenting you Pay Per Click (PPC).

However, we must point out that you should have a basic knowledge of at least the crucial ideas related to the fields of advertising and marketing, because this tutorial, which will be done in a series, is meant for people who want to learn more about Internet marketing and advertising.

Why is Pay Per Click Important?

PPC is an important part of modern advertising that takes place on the Internet instead of other, more traditional channels like TV advertising, banners, brochures, radio ads, and others. Since the popularity and usage of the Internet has increased a lot in recent years and as it keeps on growing with every passing day, it was only logical to use it as a humongous advertising platform.

This is where PPC comes into play. It is very different than already mentioned traditional methods that use push marketing as a basis for advertising since it tries to pull Internet traffic to the specific website in order to promote the products or services in question. PPC is a very complicated concept that includes many other units and entities that enable it to function in accordance with its purpose. So, let’s see what is actually Pay Per Click and what is it made of.

What is Pay Per Click?

PPC is a system for online advertising that tries to point the traffic to specific sites on which the advertisers are paying an agreed amount for every click on their ad. This is known as a pull model of online marketing, where the most important thing is the number of users that visit a website.

The History of PPC Advertising

This term, Pay Per Click, was coined in the beginning of the 1990s when firms began exploring the Internet as a platform for their business and advertising. One of the first firms that began using this concept was goto.com which became part of Yahoo in 2003.

PPC began its meteoric rise with the introduction of AdWords by Google, which prompted other search engines to create a domain of PPC as well and thus supply a PPC ad hosting service.

Search Engine Advertising

PPC marketing can take many different forms, but one of the most successful ones is Search Engine Advertising (SEA). This advertising method provides advertisers with a chance to compete for a place of their ads in the sponsored link on the search engine by bidding. This is useful since it provides instant results when anybody enters the keyword in the search engine that is related to the product or service in question, because when they get the results and click on the link it takes them to the specified website. Of course, a search engine that provides this service takes a payment for it from the advertisers of the product or service that is being advertised.

Where to buy PPC Ads?

There are many different organizations and units that are a big part of a functioning PPC Ad:

Product or Service Seller – They are the main entity of PPC advertising. They start the entire operation by finding advertisers that can help them implement PPC advertising programs.

PPC Advertiser – Their job is creating Ads, but they also supply the landing pages that are used for those Ads.

Viewer or the Visitor – They are the final targeted audience that clicks on the Ads and goes to the landing pages in search of the product or service.

How does PPC Advertising Work?

There are many steps in the process of creating a great PPC Ad.

The first step is the creation of an Internet account by advertisers in which they will keep their money for the process. After that, they proceed to make a compact ad, which might have images too. Then, they decide which keywords will be connected to the ad and decide how much they are ready to pay for every click.

After the advertisers have done their part, the scene belongs to the buyer. Whenever a user goes to the search engine and types in any of the keywords or phrases associated with the ad in question, the search engine matches those keywords with appropriate ads when showing the results on its pages. If the person that searched for a specific keyword clicks on one of the search results, he or she is taken to the advertiser’s site, which is then charged the fee that was previously agreed on.

How to make a great PPC Camping?

A great PPC Ad has some specific properties that will make it attract enough traffic to the desired website. That is because an interesting ad is the basis of a great PPC campaign. Some aspects of your ad need extra focus and you should make sure to follow these guidelines when creating a PPC Ad.

  • Find the best possible keywords that are in connection with the product or service that is being advertised
  • Carefully select the right keywords among them
  • Organize the keywords in order to craft the perfect ad

Benefits of using PPC Advertising

There are many benefits to using PPC. Compared to SEO results it provides you with much faster impact on your traffic statistics. Another important part of why Pay Per Click is so popular is a small initial expense, since you will not be charged anything other than the click on your ad. It also allows small companies to get noticed on a global scale.

Frequently used terms related to PPC

Terminology related to PPC is very important and you should fist get to know it better before you begin creating your own PPC Ads and implementing the entire process for increasing your website’s traffic. So, here are the most important terms you should know when you are preparing to use a PPC method:

  • Ad Network: This is the term that describes an Internet-based business that has the job of pairing up advertisers and websites that are willing to host ads.
  • Ad group: The group of connected keywords that is given one collective name is an Ad Group. It can contain up to 20,000 keywords.
  • Ad Position: This is the term that refers to the place in which the ad is shown on a website.
  • Call-To-Action (CTA): If you want the users to take a specific action when they visit your website, you will use this term to explain what you want.
  • Click-Through-Rate (CTR): This term is used when the rate of the users that go to your ad after they see it is determined. It is usually explained as the number of clicks compared to 1,000 users that saw the ad.
  • Campaign: A line of suitable Ad Groups is called a Campaign.
  • Conversion: This term describes the action that a user takes after he clicks on the link for the ad. It may refer to buying the product, filling the inquiry forms out, downloading the content of the page, and much more.
  • Conversion Rate: This is a very important term since it shows how successful your PPC campaign is. It measures the number of users that perform the wanted action that is set as the campaign goal. It is the measurement of the success of a paid campaign. You want your conversion rate to be as high as possible.
  • Cost Per Click (CPC): This represents your expenditures per click on your ad.
  • Cost Per Action or Cost Per Acquisition (CPA): This represents the expense of every desired action taken by the user.
  • Cost Per Mille (CPM): This represents the expenditure per 1,000 views of your PPC Ad.
  • Destination URL: This term represents the location of your website, the one where you want visitors to go so they can click on the ad.
  • Geo-targeting: When you want your ad to be shown to a particular location, in geographic terms, you will use this term to describe your action.
  • Keyword: Keyword represents the word or phrase that is entered in the search engine by the users. The search engine will pair your keyword with these results to show them on the Search Engine Result Page (SERP).
  • Negative Keywords: These are the words that you don’t want to appear related to your ad.
  • PPC Bid: This represents the money that the advertiser is prepared to pay for a click.
  • Prospect: This term describes the user that is a potential buyer of the thing that is advertised.
  • Split Testing: This term represents the usual technique for testing your ad. It helps you determine how effective your PPC ad really is by comparing two seemingly same versions of the ad that have one particular difference to see which is more effective.


Now that you are familiar with the basic terminology related to Pay Per Click, you can implement this knowledge to create a perfect PPC campaign. In order to do so, you will have to take the next step, which is creating a keyword list. We will present you with a basic guideline so you can do it with ease in the next part of our series.

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