In this article, we will get an overview of digital marketing technique Pay Per Click (PPC).

We have seen earlier how Search Engine Optimization (SEO) helps to list your business website at the top of the search engine result page. It is an organic way of optimizing your website contents so that SEO works best for you. Key limitation of this technique is that it has to follow complex rules laid by Search Engine. And Google keeps updating its rule book whenever they see a malpractice being executed to tweak its algorithm to appear at top of the result page.

So there is a paid option of Search Engine Advertising to list your website at top of result page. It is called Pay Per Click (PPC). At the simplest, when internet surfer has searched for something, has seen your ad link in result page and clicked your ad link, you will pay to Search Engine for getting that one click (which in turn, has potential to convert that stranger to your customer). The best Pay Per Click option in the market is Google AdWords.

When someone searches for keyword, Google checks all AdWords advertisers competing for that keyword and shows winner at top of result page. Who gets a top slot is decided by auction algorithm that rates Ad Rank of the page. Ad Rank is based on two factors – CPC bid (advertiser’s bid for that auction) and Quality Score of your website (relevance of website content with keyword, landing page quality).

Let us briefly see how this auction works –

Say 4 advertisers have entered an auction for one keyword “Best web designer in Thane”. Below table tells the result of this auction.

Remember, Ad Rank = CPC Bid x Quality Score

Advertiser Name

CPC Bid

Quality Score

Ad Rank

Auction Result

Advertizer A

$ 5

10

50

First Position

Adevertizer B

$ 10

4

40

Second Position

Advertiser C

$ 15

2

30

Third Position

Advertiser D

$ 20

1

20

Once you have won the auction, the amount you Pay Per Click is decided by below formula:

You Pay = (Ad Rank of person below you / your quality score) + $ 0.01

In above example, First Position will pay = 40/50 + $ 0.01 = $ 0.8 + $ 0.01 = $ 0.81

In this article, we got an overview of Pay Per Click (PPC). We, at Butterfly Themes, undertake PPC campaign for your business website using Google AdWords.