Pay Per Click (PPC)

What Are Cost-Per-Click (CPC) Ads? 
Why Does My Business Need Them?


Cost Per Click Terminology

In order to clear any confusion, the term Cost Per Click (CPC) refers to ads that are paid for when a user clicks on an ad. One of the most prominent and widely used examples of this is AdWords, which is Google’s platform. Additionally, the search engine Bing has a similar service called Bing Ads.

What is AdWords?

The most common CPC platform used is AdWords. What is AdWords? Let’s break it down. The image below shows a search in Google for “kids scooters.” The box on top is part of AdWords, these are called Product Listing Ads (PLAs). These only display for products on ecommerce websites. 

You can see the word “Ad” highlighted in green. These are advertisements you will see for any industry with products or services. The PLAs above are ONLY for companies that sell products directly through their website.

The final two results in the example are organic results. That means they are searches generated by Google not AdWords CPC ads. These results are shown because the companies have put time and effort into Search Engine Optimization (SEO)

That means the companies that show at the top of the search results displayed are not paid ads, but businesses that have invested time and money into keyword research, content development, social media, and other features that Google considers ranking factors. 

Organic search results take time to gain a foothold and momentum, whereas AdWords ads can show on the first page the day the ads start running.

Google Ad Results

How does AdWords work?

With AdWords there are a few things to consider before getting started. First and most importantly, what is your budget? Corporate Conversions can help you determine what a competitive budget would be by doing extensive keyword research.

Once a budget is set and ads are created, the account can run. In the above screenshot the search for “kids scooters” displays the PLAs and normal ads in the results. Those are called impressions. Not one of those companies paid for those ads to show for that keyword. The companies will pay only if their ads are clicked on, hence Pay Per Click. Once the ad is clicked that will send the searchers to the website of the company paying for the ad.

 In terms of budgeting, if your company allocates a daily budget of $5 ($152.50/mo) to spend on AdWords, but on average only $3 a day of ads are clicked on, you will pay $91.50 that month. Conversely, if you meet your $5 a day budget before the time limit set, Google will not show your ads after your budget is spent, so you can be assured you will not overspend what you have budgeted.

How do I Start an AdWords Account?

If you are interested in AdWords and would like to speak to someone on the topic, give Corporate Conversions at 616-426-9303