Home > Online Marketing, Pay Per Click > What is Pay Per click?

What is Pay Per click?

Terry Boddie, Agency Liaison Director, Marketing Media ManagementGuest Blog post by Terry Boddie, President & Agency Liaison Director at Marketing Media Management

With the increase in technology, the way businesses operate has changed in the past few years, and now even small businesses are able to compete online with larger national businesses.  To stay competitive and drive customers to their e-commerce sites, businesses need to have a Pay Per Click advertising campaign.

Pay Per Click advertising is the use of sponsored ads that show up when someone uses a search engine.  The ads are targeted to what the user was searching for, and provide a link to the promoted items or services.  This can allow even small businesses to have ads that show up next to, and compete with, much larger competitors.  This also means that the ads are only being shown to a target audience that is already thinking about and researching the product that the company is offering.  The sponsored ads can also be targeted down into geographic location and other demographics, making the ad only appear to the most potential customers.

When the ad is clicked, the advertiser pays a small price, usually just a few cents.  The click that was paid for is then directed to the advertiser’s site, where the customer who clicked through will potentially make a purchase.  If no one clicks on the sponsored ads, the business does not have to pay; it is only when a customer clicks through that it costs anything.  The targeting of the message helps to ensure that the users who click through and cost the company money will end up making a purchase, and not just leave without giving the company anything in return.

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