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PPC Basics – Pay Per Click Introduction

PPC, or Pay Per Click marketing involves an account with a search engine such as Google or Yahoo, and payment for clicks from search results to your site. At Google, it’s called Adwords. Their workings are very similar, so I’ll just talk about Google Adwords here.  Here are the basic components and actions:

  • You open an account and provide a credit card or other method of payment.
  • Unless you set up differently, you will never pay unless a searcher sees your ad in the search results and clicks on it, going to your site landing page.
  • How much you pay and where your ad is displayed in results  is determined by proprietary calculations that consider your maximum bid per click (what you’re willing to pay), your ad “quality score” and other factors.
  • An ad gets a quality score based primarily on CTR, or Click Through Ratio; the number of times it is clicked divided by the number of times it is presented (impressions).
  • In other words, ads that are worded better and draw a higher percentage of clicks can get positions higher than those of a competitor that has bid more for position.
  • Other factors are considered, with some opinion that the quality of the landing page is also considered.

Those are the very basic explanations of what goes on in PPC marketing.  There is a lot to learn if you want to make the most of it.  However, with the proper knowledge, well-constructed ads, and excellent landing pages, this can be the most targeted lead-producing marketing you’ll ever do.

Example:  My real estate site received 180 visitors last month on my most competitive key phrase in this market.  My cost was the amount I budgeted of $150.  Of course, 180 visitors that leave right away because they don’t find relevant information they value would make that wasted money.  However, if they do like what they find, what other type of marketing can you do that will bring you such a targeted consumer, allowing you to track their visit and your Return on Investment?

[important]There’s a video intro to PPC on Google in the Premium Content below the Related Artciles.[/important]

Related Articles:


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This video is a quick introduction to Google Adwords, and I explain some of the terms as I show them to you in an actual real estate account.

These videos are high resolution, so use the box as shown here to enlarge to full screen.



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