How Does a PPC Campaign Work?

How do Pay-per-click Campaigns Work.Before people even consider starting a PPC campaign on Google, Bing or Yahoo, they usually want to first know how pay-per-click campaigns work.

The phrase 'Pay-Per-Click' has a few acronyms you should be aware of.  Whenever anyone says "Pay-per-click" (PPC) or "Cost-per-click" (CPC), they are referring to an advertising model that major search engines use to charge advertisers for clicks (traffic).

The concept is simple really - you pay every time your ad is clicked.  How much you pay per click is up to you.  You can set a maximum cost-per-click (CPC) bid and the Adwords and Bing system won't charge you anything higher than that per click.

The Cost-per-click option can be set within the settings of each campaign that you create within your paid search advertising account.

To give you a broader idea of how PPC Campaigns work, let's illustrate the steps you would take as a new advertiser to get started.

  1. Create an Adwords or Bing Ads account.
  2. Set Up Billing
  3. Create a campaign (paused!)
  4. Set the campaign settings (Location, Language, Network, Device targeting)
  5. Create ad groups within that campaign
  6. Add keywords to each ad group
  7. Write ads for each ad group
  8. Double-check your settings!
  9. Turn Campaign Status to 'Active'

Laying out the steps and actually executing them are two different things.  For example, many beginners choose Adwords default settings because they (rightfully) assume that Adwords wouldn't mislead them.  This is the biggest first mistake you can make.  Adwords and Bing ads make it easy for you to spend money.  When you are just starting out, this is a bad thing because you don't know what you are doing!

If you have questions about how PPC campaigns work?  Leave a comment below.
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