Pay Per Click (PPC) is an online advertising tool that allows businesses to advertise their products and services on search engines and other content networks. It works by having advertisers bid on keywords related to their target audience, and then placing adverts based on these bids. In the PPC model, advertisers only pay when users click on their ads. This makes it a very cost-effective way for businesses to reach potential customers, as they do not pay for impressions or clicks that do not lead to a sale.
Compared with another type of online advertising – Pay Per Impression (PPI), PPC is more targeted and cost effective since it only charges users when they click through the advert, rather than when they merely view it. With PPI campaigns, businesses would pay every time an advert was shown regardless of whether it had been clicked or not. This can be expensive since there is no guarantee that people will take any action despite seeing the adverts multiple times.
In comparison, PPC campaigns enable businesses to control costs more easily by setting a spending limit and choosing relevant keywords which target potential customers who are more likely to be interested in their products or services. This helps ensure that money isn’t wasted on advertising messages that aren’t seen or don’t convert into sales. Furthermore, if it turns out that certain keywords are not working well for a business, then those keywords can be quickly removed from the campaign in order to focus resources elsewhere.
Overall, Pay Per Click is an extremely efficient form of online marketing compared with things like Pay Per Impression models where businesses risk paying for impressions that never lead to conversions or sales. By ensuring that users are only charged when someone actively clicks through from the advert, it ensures maximum efficacy from every dollar spent on advertising campaigns.