A PPC ad campaign is an ad campaign where you will be charged a certain amount of money for each and every click that your ad receives. Google AdWords is such a PPC advertising program.
You can set up a Google AdWords account for free – but it is not free to run an ad campaign if you get clicks, because you will pay for each click that you get. The objective is to ensure that those clicks revert to sales, at some point, so that you can cover the costs of the PPC AdWords campaign.
When you set up a Google AdWords account, you select your keywords, and determine a price that you are willing to pay, per click, for each of those keywords.
The ads that will pay Google the most per click appear at the top of the sponsored section on the search results page when those keywords are searched for – so, the higher you bid for keywords, the higher your ad will appear.
Now, once you’ve set up your ad campaign in AdWords, Google makes sure that your ads appear in the sponsored section of the search results, again, based on how much you bid for each keyword, but they also make sure that your ads appear on websites that contain keywords that are related to the keywords that you chose.
This is done through Google’s AdSense program, which is set up for website owners who want to earn revenue from Google by placing ad code on their pages. They are paid a percentage of what the AdWords advertisers are paying Google for the keywords each time someone clicks on a link on their site.
So, Google makes money because you pay for clicks on your ad, the AdSense publishers (website owners) make money when their visitors click on your ads, and you, of course, make money by getting more visitors to your site, in a small amount of time, which you can then convert to sales.
For more information, visit PPC Guide PRO and Learn how to use the Google Pay Per Click system.
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