How Pay Per Click Marketing Works

There’s a good chance that you’ve heard or read a little bit about online ads at some point. There’s a good chance that you don’t know exactly what that means. Online ads aren’t like television or radio ads. There’s a little more to it. Here’s a brief introduction to PPC, or pay per click, ads as well as a little bit of information about the other types of online ads.

Google Adwords and Pay Per Click Marketing

It’s likely that most of what you’ve heard about when it concerned online ads was referring to Google’s ad word program. Google’s Adword’s are one of the largest forms of Internet advertising around. Most of their ads are pay per click.

Pay per click marketing work pretty simply, however there is a huge gap between setting up your Adwords account and running a successful campaign. If you’re the website owner, when someone visits your website and clicks an ad you get paid money. If you’re the person who’s placing the ad, you only get charged money when someone clicks the ad that you placed. There are two other main forms of ads. Cost per action and cost per impression.

Cost per impression means that every time your ad gets a certain amount of views you are charged money. The default for this is usually 1,000 views. Cost per action means that the amount is paid every time someone clicks on the ad and does something on the ad website. Usually, that means buying something on the website.

Pay Per Click Marketing Advantages

Pay per click ads are usually the best route for advertisers to go. They guarantee that they are only paying money when someone clicks on their ads. Cost per impression ads are almost never worth it because they rarely lead to sales being made. A website might have 100,000 views, but your ad might be consistently overlooked if people who are visiting the website aren’t looking for what’s being offered.

Cost per action ads are usually very expensive. They can also be hard to keep track of, so a lot of website owners don’t like to use them due to their unreliability.


Setting up a Google Adwords account and starting to run pay per click marketing on your own is a little like sitting down at a Blackjack table when you don’t know how to play.  Just like in Blackjack, your money can disappear quickly.

Although in concept, PPC is fairly simple, there are a lot of variables when running a campaign. You don’t have to get them all perfect, but you do need to get enough of them right to be profitable.

When in doubt, get some help.  Most PPC Management firms like Rand will set up your account and ads for a pretty reasonable amount, then manage your account each month for a flat rate or percentage of ad spend.  It’s important to get it right…so if you are choosing to use Pay Per Click Marketing as part of your online strategy, invest some time or money in getting it right.