All About Pay-Per-Clicks

If you conduct a Google search for "pay per click," you will find that very little information exists that really explains this concept besides "IT DRIVES TRAFFIC TO YOUR WEBSITE". which sounds great, but without knowing how?

Many of these marketing terms were like learning a new language when I first started my business. I came to the same conclusion after spending a lot of time doing research and spending thousands of dollars on a mentorship for an Ad Strategist: pay-per-click advertising is the same thing. Intangible, and for the same reason that many business owners stick to what they know about marketing or attempt unsuccessfully to run social media ads. The simplest way to expand your business, now or in the future, is through marketing and advertising.

Wikipedia defines pay-per-click as an internet advertising model in which an advertiser pays a publisher for each click on an advertisement. First-tier search engines are typically associated with pay-per-click.

Let that sink lol.

Naturally, I'll elaborate! Display ads, social media advertisements, and search engine results page ads all fall under this category. One of the best ways for brands to use Sponsored Products is to think about CPC (cost-per-click) because finding a good bid for certain keywords helps figure out how much advertising campaigns are worth. These search engines pay when these ads are clicked by "bidding" on keyword phrases.

Construction

Below is the construction structure of pay-per-click ads:

Cost-per-click (CPC) = calculated by dividing the advertising cost

by the number of clicks generated by an advertisement.

The basic formula is:

Cost-per-click ($) = Advertising cost ($) / Ads clicked (#)

The average amount paid for each click on an ad is equal to CPC. A high number of clicks or visits indicates that customers are paying attention to an advertisement. Each brand's optimal CPC is determined by its ad ranking as well as the rankings of other related brands and products. Since multiple advertisers can bid on ad placement on websites and popular keywords, Advertising costs rise in proportion to the auction's ad placement and the keyword's demand.

Finding this type of material is very hard on search engines. Nonetheless, find material that you can actually understand as a business owner and utilize it in your own business practices.

Check out "Data-Driven Content Marketing" for more information on Social Media Ads!

Resources:

Pay-per-click - Wikipedia

What is CPC (cost per click)? How PPC advertising works (amazon.com)

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