How Does Pay Per Click Work

pay per click

If you’ve looked into advertising your website, you may have heard words “pay per click” or “PPC” marketing and wonder what it is It is one of the most widely used forms of paying for advertising there is on the internet today. If you are in business, you probably already have a website for your business. However, just having a website won’t get you visitors or sales. Even though you have great products or beautiful website, if no one comes to your site, you will hardly get any sales. You have to entice people to come to your site. Many people struggle at this point. That’s when this pay per click Marketing comes into play. The simple answer to “what is Pay Per Click Marketing” is that it lets you buy targeted traffic for your website.

History of Pay Per Click Marketing

The concept of charging you, the advertiser, has been most generally credited to Bill Gross. However, this method was first introduced into the internet world in 1996 in a web directory called Planet Oasis. It was not till 2002 Google launched PPC model. Now it became one of the most popular on the internet. It does have several drawbacks but also several advantages. Understanding PPC can help you avoid falling into the drawbacks of PPC advertising.

How Pay Per Click Marketing Works

As I mentioned earlier, you will need people to visit your website so they may buy something from you. But you don’t want just any people to come to your site because some people may not be interested in what you are offering at all. You want “targeted traffic” to come to your site. Targeted traffic is people who are interested in the topic of your website, and pay per click method is getting that targeted traffic. How to define targeted traffic? Mostly by keywords.

Once you have your keywords and key phrases and decide how much you want to spend per day on your PPC campaign, the company will display an ad that links to your website. When people search on those keywords or key phrases in a search engine, such as Google, the ad for your site will show up on that results page. Have you noticed a few top ranks of Google said “sponsored” or “Ad” before the website name like below?

pay per click examples

These website companies use pay per click link. These ads are placed in visible areas so anyone can notice. Then some of them click on the ad to reach your site, you will pay for that click. You’ve just gotten a visitor who was looking for exactly what you have to offer, whether it’s information, product or something else.

You will set the daily budget. Let’s say your keywords you want to use for the advertisement costs $5.00 for 100 clicks, and you set your budget for $5.00 a day, then your ad will be displayed until you get 100 clicks. Once you get 100 clicks, your ad will disappear until the next day. If you get 100 clicks in 20 minutes, your ad had only appeared in 20 min, and you will have to wait till next day.

Why PPC? Difference Between SEO and PPC

Search engine optimization can serve the same purpose, but with more work on your part and a little more time. With PPC, you just choose your keywords, set your budget, and let the process work.
Search engine optimization won’t necessarily cost anything, however. You can do your own SEO work without paying anyone for any of it. By optimizing your website to rank high in the search engines, you may be able to get a top spot for a search on the keyword you want.
The significant difference between SEO and PPC is time. Even with the best optimization, it could take several days for your site’s ranking to improve. But with PPC, you pay the money, and the clicks begin immediately.

Pay Per Click Marketing Downsides

As you may already realize, pay per click marketing is one of the easiest and most effective ways to advertise on your site to people who are looking for that exact kind of information. Very few other methods can get you targeted traffic quite so quickly and easily. However, there are some drawbacks. I posted out four major drawbacks of PPC.

  • It could become costly. It is because it is easy for you to get caught up in a bidding war over keywords that you set. In most cases, you end up spending a lot more than your potential return. It is especially true if you go for bid-based PPC. Some PPC engines will offer you auto bidding features which will automatically increase your bid amount each time someone else outbid you. This features may sound good to you at first, but in the end, you will discover that it is not. Make sure to stick to your budget.
  • It can be hard to measure. Some search engines do provide conversion measurement tools. These allow you to track whether or not your PPC is generating the desired results or not. These tools, though, are not 100% accurate.
  • You need to be aware of is the junk traffic. Most of these PPC sites often distribute a portion of their results to various search engines. The traffic results may look good, but you will see any sales, and it will mess up your conversation analysis.
  • It does not scale. If the traffic to your site would happen to increase the cost relating to the increased would also increase. Your average cost per click would remain the same mind you, but your overall cost will be higher. As a result, you will find yourself at times paying more for the service than you are actually bringing in.


So I laid here a lot of information, but if you have wondered “what is Pay Per Click Marketing?” it is one of the great marketing methods to increase the traffic to your website quick and effective way. You will set the daily budget, and you get charged based on the clicks. As much as it is easy and effective, PPC has some shortfalls too just like any marketing methods. However, if you understand how PPC works and use it properly, your business will proliferate by utilizing PPC. I hope this article gives you some clear understanding about pay per click.

About the Author John and Shien Yuin

John and Shien Yuin are Co-founders We LOVE efficiency and helping others grow. Above all, We LOVE sales and marketing! We are fueled by growth!

Leave a Comment:

Real Time Web Analytics