What is PPC and How it works?

PPC, also called as  Pay per click, is an advertising platform of online marketing in which the advertiser pays a fee to the host of the platform when one of their ad is clicked. The objective of an ad is to show the users who click on the advertiser’s website or app and take some valuable action such as Purchase or subscribe. The most popular form of search engine marketing is PPC. It enables the advertiser to bid for placing the ads in search engine sponsored links when people search the keyword related to their business. For example, if we bid on a specific keyword such as  “best PPC tools,” our ad might be shown at the top of the search engine results page.

Each time our ad is clicked, the audience reaches our website or app, then we have to pay a small amount each time for a click to the google. When “pay per click” is performed perfectly, the cost is unimportant because the visit and clicks are more beneficial than what you pay for it. In other words, if we pay $5 for a click and get a $500 sale through the first click of an advertisement then we have made a big profit.

Most businesses use PPC marketing to drive traffic and generate sales or queries from their target customers. Standard PPC platform helps you to understand the depth of targeting, meaning that it allows you to place the ad to those only who you think to fit your audience demographic.

What is PPC and How it works ?

How does PPC advertising works ?

Generally, you will see that most of the businesses start their paid advertising on Google ads and Facebook ads because it provides access to a large number of audiences and customers. There are different methods to run and set up the ad campaign depending on the objectives.

How the ad auction works

We will go deep into how ad auction works. 

The search engine doesn’t show the ads to you for every query, but if the user is looking for the product information, the search engine determines the query. As shortly as the user submits the query, the auction takes place.

A mixture of factors determine

  • Eligibility of advertiser for the auction
  • The eligible ads appear on the following order
  • If their ad is clicked, how much each advertiser will pay 

The auction is based on the Maximum CPC where the advertiser sets the amount in their ad account for a certain keyword or an ad group -this is the amount where advertiser willing to pay for every click. But it doesn’t mean that they will pay the same amount as the minimum or maximum.The other thing is the quality score, it is a metric score that is given by Google based on the different factors such as the Expected Click through rate, Relevancy of ad, and landing page quality.

What decides how much cost an advertiser pays for each click??

As we should know, the ad rank plays a big role but CPC is not only thing that contributing to them. We can know the cost that an advertiser needs to pay to get in their position as: Cost per click =Below the rank of advertiser /quality score

Why is necessary to use PPC

If you choose PPC as an advertising channel for your business, you will need first to understand the advantages of PPC and the reasons for investing your budget here. Here are the multiple reasons why PPC marketing is the appropriate channel for your business.

1.You can  receiving clicks and impressions very quickly

As compared to other advertising channels like  SEO, PPC quickly gives you the click and impressions..You need to set up the account and create the ad only and within a few hours it will be approve by google.Once your ad is live, you are qualified to appear in the ad auction and you will receive the clicks and impressions.

    2. It can easily be tracked and measured 

In PPC marketing, you can easily measure and track the performance and returns from the platforms. This is one of the primary benefits of PPC marketing over other standard marketing channels.

Most popular platforms such as Google ads and Bing ads enable you to track performance like clicks, impressions, and conversions including the number of leads. You can also see the return of investment, not just the overall account but particular keywords and ad groups also. This means that, To improve the channel of ROI you are capable to use the data and insights to successfully purify the efficiency and improve the performance of the campaign over time.

3. You have full control of the ad campaign and budget 

By using PPC you can pause the advertising during a busy period and also generate fresh leads when you need them. In the PPC you are in full control of the ads campaign. You can run the ads as per your wish whether it is a time of day and day of the week. You have got full control of the budget as well. Other marketing channels don’t give the same level of ability to manage the budget and fluently cost as PPC gives.

PPC allows you to target your audience perfectly based on your data, It also allows you to manage your bids according to device, time, and location. If you know the customer search intent you can easily target them with the help of data and insights and reduce the wastage of the advertising budget.


1.Search Ads

Search ads are the most popular and common ads in digital advertising. On Google, the search ads appear at the number one position of the search results. This type of ad includes text with no display. If you want to create a search ad, you need to use Google ads and create your advertisement account.

Setting up the ads

You need to choose the right keywords that help you to create an effective search ad. Ad will appear in search results with the help of a keyword trigger. If you want to reach the audience looking for your services, you must first choose the appropriate keywords.

Long-tail keywords are the great keywords types for PPC ads.

These keywords include three or more words such as Best sports shoes in India. These keywords are more suitable for search ads because they help to drive more customers to your business and keep your CPC low. Once you choose the right keywords and add-on ad groups, you will be ready to join an auction to bid for your ad placement. You will set your maximum bid amount then you can pay each time when some clicks on your ad Your bid amount and quality score decide your position in ad placement . The quality score decides how Google places your ad.

The ad rank depends on the CTR, quality score, and ad relevancy. You need a high quality score in select keywords to get a better position in SERP. If your ad is approved by Google ,you will ready to launch the PPC ad

Search ad is one of the most common types of PPC advertising that gives your business the best and most positive results.

Display Ads

Display ads are also a type of ad, and this ad is generally used to reach the people who are interested in your business or it also helps to increase the traffic in your website. This advertising method is one of the best methods to increase your brand awareness towards the people. Rather than text ads, these ads generally convey text and photos and appear on Google partner websites.

With this ad, you can easily target the people you think are interested in your business. You can select your particular target market and target the audience who visited your same websites.

Setting up the ads

While creating display ads, you need to follow the same process as you do in regular PPC ads

You will set your bid amount in the budget section then you need to determine how much you pay when someone clicks on your ad.

After creating the ad copy, you need to get approval from Google.

Display ads are most suitable for those businesses who want to create their brand awareness in front of people. It also helps to get the few leads interested in your business and clicks on your ad This ad type  is one of the best-paid advertising  to help more to people discover your brand.

Social media ads

Social media ads are the best and most popular type of paid advertising method. This type of ad shows in social media feeds on various platforms; It is a great marketing channel to connect with the active users on social media.

To start creating social media ads, First, you need to select the platform. There are many social media platforms where you build the ad campaign, such as

  • Facebook
  • Instagram
  • Pinterest
  • Linkedin
  • Twitter

These are the most popular platforms where most companies are using to engage the audience. You need to select the platform based on the frequency of the audience. It would help if you did the proper research about your audience to know which social media platform they use the most.

Once you select the platform, then you can start creating the ad . You can use multiple formats on social media platforms. This format will depend upon your campaign goals and objectives.

Social media also provides the advanced targeting features

Most companies are love to use social media because they can easily reach and target valuable leads. For example, if you run an ad on Facebook, you could target people based on

  • demographics
  • Locations
  • Interests
  • Education
  • Behaviors

This targeting allows you to reach more interested customers. Social media are one of the best types of PPC for reaching the leads, engaging the customers, and getting them to your business.

In-stream ads

In-stream ads are also called video ads. This type of ad generally appears on the YouTube video. While watching the video, you have seen some ads in between or before the video. This in stream ad is in the form of a small sidebar, skippable or non-skippable.

Setting up In stream ads

To set up the video campaign, you will need to first select the type of video campaign in your Google ads account. After that, you will create a campaign and decide your bid strategy, and then you will select the budget and dates. This option enables you to decide the amount you spend on each day and factors into your overall budget.

Once you set all the information, you will move into the network section and decide which networks you want to show your ads. 

You can select from the following networks 

  • YouTube video 
  • YouTube search results 
  • Display networks 

After selecting the network ,then you will choose the reach and placements . As quick as you can fill  all the necessary information, you will launch you’re In-stream ad.

Google shopping ads

Google shopping ads are another form of paid marketing and are generally used to help the customer find your products. These ads seem in the carousel format in the shopping section of the above search results. Before they click on the website, users can see the products and their prices on the Google shopping ads.

These ads show the “window shopping feel” to the Internet. It allows the users to search the similar products from different businesses.

Setting up a Google shopping ad

To set up a Google shopping ad, you will need to start a shopping campaign in your google ads account and choose shopping as your type of campaign. Once you have chosen your campaign type , then set up the information such as

  • country of sale
  • campaign name 
  • bid amount
  • inventory filter 
  • devices 
  • daily budget 
  • Location 


Once you fill  all this information, you will get ready to start your ad campaign. These ads allow you to provide the product to your audience. They can see the images of the product, the price, and the name of your company. They may also show extra information such as product rating, special offers like free shipping and price drop percentage. This structure is one of the most helpful PPC campaigns because the users know all the information before they click on your product.

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