What Is Pay Per Click Advertising?

What Is Pay Per Click Advertising

Are you a Startup or small business who is constantly being pressured into trying pay per click advertising? Have you ever asked yourself, What is Pay Per Click Advertising? Pay per click advertising or PPC is a very popular way for companies to get their information in front of potential customers without spending as much money as they might need with other types of ad campaigns. It works by creating an ad, which is then shown to people who are searching for specific information on the internet.

The ad should correlate with what the searcher is looking for through the use of keywords. Unless the searcher clicks on the ad, the person who created the ad doesn’t pay anything. Hence the term pay per click. Only when an ad is clicked is the advertiser charged for the ad. If you’re still asking what is pay per click advertising and why is it for me, you should take a look at the benefits and risks of the service.

Benefits of PPC for Startups

There are many benefits to pay per click advertising, with the most significant benefit being that the advertiser isn’t paying for anything the searchers aren’t interested in. In other words, no clicks on the ads mean no money out of the advertiser’s pocket, so he or she is, essentially, advertising for free unless (and until) someone clicks the ad. While that doesn’t make this kind of advertising cheap, it does help it to cost less than other forms of advertising.

People who click ads “just for fun” or to try to defraud the advertiser in any way can be subject to penalties, which helps to protect the advertiser from spending too much money on people who aren’t interested. Pay per click advertising can benefit a business that doesn’t have a lot of money to spend on big ad campaigns that might not get a response. Paying only for a response and not for the ad is a much better way for small-time companies to make the most of their advertising dollars.

PPC Risks and Roadblocks for Startups

Just like with any campaign a business engages in, there are risks. Asking yourself what is pay per click advertising, learning the definition, and then only focusing on the positive ways it could help you won’t really move your business forward. You have to be aware of the risks as well as the rewards. It might seem like pay per click advertising is exactly what you need, but until you understand all there is to know about the basics of it, you’re putting your advertising budget at risk.

The most important concern with pay per click is to set a budget per day. That way, you will only be charged that amount, and then your ads will stop showing. If you don’t set a budget, your ads will just keep showing and people will keep clicking. You could end up spending thousands of dollars in a day, simply because you didn’t realize that you have to set careful limits. So, what is pay per click advertising in this case? It’s a good way to spend a lot of money if you don’t understand how it works or you do not control your budget.

Determine Your Advertising Budget

Decide how much you’re willing to spend every day, and understand that your ads will not be shown anymore that day once the threshold is reached. Whether you can spend $2.00 or $200.00 each day isn’t the point. The goal is to decide where you’re comfortable and set that as your daily pay per click advertising budget. Then you won’t risk of over spending on any given day. Never allow your advertising budget to be more than you can afford to lose per day, because those clicks you’re getting on your ad don’t necessarily add up to money in your pocket. The person who clicks has to actually purchase something from you in order to make it worth your while.

Pay Per Click Channels

You have options for your pay per click advertising. Google Adwords is one of the most popular choices, but it’s far from the only one. You can also use MSN/Bing Adcenter, or pay for ads on Yahoo!, Facebook, or LinkedIn, just to name a few. Most social networks and search engines offer pay per click ad campains, and they provide tutorials for anyone still asking the what is pay per click advertising question.

You can use whichever channel you like, and you can certainly use more than one option if you have the budget for it. It’s important to know where your potential customers can be found, and target your ads to that particular search engine or social media site for best results.


Pay per click advertising can be a huge benefit to a business. Currently, nearly 65% of the clicks on Google’s search engine results are sponsored (in other words, they’re ads). People seem to trust these sponsored options more than the organic results, which can really help your business get noticed. Ads in the first position on Google search are being clicked at the rate of about 8%, which is actually much higher than many other forms of advertising. Because so many people use search engines and social media, pay per click ads are only going to become more relevant and important for businesses in the future.