How Does Pay Per Click Work?

Nowadays Pay Per Click has become a fundamental tool in digital marketing, it helps to generate customer traffic to websites through advertisements.

PPC helps to segment and find potential customers for your business, with this advertising method it is easier to position yourself at the top of the search page.

ad campaign

In this article, you will learn all about Pay Per Click and how it can help you generate more customer traffic through PPC platforms.

We will also review the pay-per-click pros and cons.

What is Pay Per Click?

Pay Per Click is one of the advertising models commonly used in digital campaigns and it is based on the advertiser paying an agreed amount for each click that the user gives on your ad.

With this form of marketing, the advertiser can find large traffic of users directly focused on the product or service offered.

click through rate

In PPC it is essential to have an optimal “Click-through rate”, the better your ad the better the CTR, and consequently the system will be on your side.

The CTR is the average number of times the ad is visited and the number of times it is shown on the web page.

The 2021 Google economic report found that 87% of small business leaders find new customers using digital tools like Google AdWords.

How does pay-per-click work?

In this form of advertising, the advertiser pays a certain amount each time someone clicks on your ad to visit the page and see what is offered.

For your ad to be better positioned in search engines and easier to show to users, it is essential to have quality.

The CTR helps you to know the health of your ads, will increase the traffic on your website, and will make your advertising more profitable.

Review pay-per-click rates and your advertisement budget.

SEO vs SEM – 2 approaches to digital marketing.

Types of Pay Per Click Pricing Models:

Keyword Auction

In this model, the highest bidder is the one who gets the most popular keyword, in this model the advertiser sets the maximum amount he is willing to pay for the use of that keyword.

This auction determines the ranking of the ad and places the highest bidder higher on the search page.

keyword auction google

Flat fee pricing

This modality works with web search engines where you negotiate and agree on a fixed dollar amount for each click on your ad.

In the Fixed Rate, the most relevant keywords will be the ones that have more cost per click and those that have fewer searches will be cheaper.

Main PPC platforms

LinkedIn ads

We know that LinkedIn is the most successful professional social network which is why it represents a good opportunity to connect with companies and specific professionals related to what you offer.

linkedin ads campaign

Google AdWords

This is the best-known platform, it has the advantage that besides having a large flow of searches, it can position you above the sites with good organic positioning.

Facebook Ads

This system is very popular and used because it has a wide market segmentation campaign, which facilitates contact with the ideal customer.

Review what is Facebook Advertising & How does it work by Neil Patel.

Pay Per Click Pros and Cons


– Get immediate leads

Through PPC you can connect advertisers with customers who don’t know you but need your services.

– Generate customers focused on your business

In this modality, you can choose which customers you want to approach based on their searches. It is very effective because you approach people who are interested in what you offer.

– SEO Complement

We know that SEO and PPC are different marketing strategies but they can complement each other and achieve a greater reach.

SEO process


– High costs

That can happen if you do not have full knowledge of the cost per auction, we must know that the most searched words are usually high-cost words, so if you do not get to make the sale could generate more expenses than desired.

– Market competition

Some words tend to be very popular in search engines, so positioning yourself in the highest places may result in higher advertising costs.

Do you want to start a PPC campaign? At ISEB we can guide your marketing campaign to success. Generate more customer traffic to your website and sell.

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