The Ultimate Beginners Guide to Pay Per Click (PPC) Advertising Strategy Pay per clicks results is shown at the top and bottom of the SERP when for some of the keywords you search. Pay per click services work on the mechanism of advertisers need to pay for each click user clicked on the ads. Here advertiser’s bids for the keywords precisely to make their ads to show on the first page first result of the SERP, This is simply called as ad ranks. PPC is all about the relevancy of your ads, Click-through rate (CTR), Landing page relevancy, Quality score. Advertisers show their ads to the most relevant audience because when people search a keyword you know their search intent and display the ads to that audience then you can get more relevant conversions and relevant traffic to site with less bounce rate. You should remember that social media also has PPC ads, too. (Facebook ads)
Cost Per Click (CPC) Cost per click is the same as PPC that advertisers will be charged when the user clicks on the ads. CPC acts a bid that where your ads need to place for example if you pay more than your competitor then your ad rank will be higher to your competitor. You can set the maximum CPC you are willing to pay for each click. What you actually pay for a click is determined by the formula Actual CPC = (Competitor’s Ad Rank / Your Quality Score) + 0.01
Ad Rank This value determines the position of an ad on a search engine results page. It’s equal to Maximum Bid x Quality Score.
Quality Score This is the score that the search engine gives to your ads based on your clickthrough rate (CTR), Relevancy of your keywords, Landing page quality and relevancy, past performance on the SERP.
You can set your CPC to the manual, where you determine the maximum bid for your ads, or enhanced, which allows the search engines to adjust your bid based on your goals. One of these enhanced options involves bid strategies that automatically adjust your bids based on either clicks or conversions