How Does Pay Per Click Work?

Most web users have heard of pay per click, but don't have a thorough understanding of how it works.

How Ads And Keywords Are Triggered

The term "link" has become so ingrained in our terminology that the relevance of the term is often overlooked. Every webpage is connected to other webpages. Which makes everything on the web linked together.

It helps if you picture ads and keywords in the same mindset. When you type a query into Google, advertisements linked to that query are displayed to customers.

If you type "iphone" into google you'll get multiple ads that advertisers have linked to that keyword. Anytime the keyword is typed into Google, it triggers their ads.

Impressions and Clicks

An important aspect of pay per click that beginners don't immediately grasp is the difference and importance between impressions and clicks. Every time your ad is triggered and displayed it's called an "impression".

It's a stat that tracks how often people are triggering your ads. It's important to know that there is no cost per impression. Your ad can be displayed one million times and not accrue any expenses.

That's because your advertising cost is determined by the amount of times your ad is clicked, not displayed. After your ad is clicked, the customer is then sent to your blog or website.

Pay per click is incredibly efficient because you're only paid per visitor, unlike other forms of advertising that charges a flat rate.

Your goal as an internet advertiser is to generate a high amount of quality clicks, with a low impression rate.


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