How Pay Per Click Works

Pay per click marketing is a marketing initiative widely used to get the attention of visitors from search engines. On the other hand, this marketing tool is also a way for website owners to earn money online by hosting pay per click ads.

Like any other advertising method, it does not mean that pay per click will give you easy money and quick profit. You may encounter problems when using pay per click marketing especially if it is not managed correctly. The results in getting more visitors for your site may be overwhelming but if these online users do not patronize your business, all efforts will be put to waste.

For this reason, it is always recommended that there should be a complete understanding of what this marketing is, and this should be implemented.

So what is pay per click marketing and how different is this to other forms of advertising?

Pay per click can be done in two ways. Advertisers can post ads to websites and pay the website owner of the rate they have previously agreed every time an online user clicks the ad. It can also be done in a bidding process. This is usually true when an advertiser wants to post an ad on the search engine results page or SERP. If the advertiser wins the bidding for a certain keyword or phrase, his ad will be placed on top of the paid listings in the SERP.

Now in every search engine results, there will be the organic search engine results and the ‘paid advertisements’. And if you participate in the bidding of the pay per click advertising and you bid on the keyword ‘flash drive’ and you have the highest bid, then this means that your listing will be on top of the first page.

Every click of this ad then means you have to pay the amount of your bid, or the amount you bid on the keyword.

This means that if 100 users clicked on your listing as part of the marketing under pay per click, you will be charged $125 for it, if you bid for $1.25 per click.

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