Digital Marketing: What You Need To Know About Pay-Per-Click

PPCSmall business owners who want to harness the power of the Internet need to know about pay per click advertising. In this post, we will share the basics with you.

At its most elemental, pay per click refers to a form of advertisement in which the company advertising itself pays the website where the ad is displayed for each time the ad is clicked, and only for times the ad is clicked. There is no flat fee; an ad that generates many clicks will cost more than an ad that viewers don’t click on. Formula-wise, the most fundamental calculation goes thusly: Pay per click ($) = Advertising cost ($) ÷ Ads clicked (#)

The advantage to pay per click is efficiency. Small businesses can’t afford to pay a lot of money to park an advertisement on a site and let it sit there, hoping it generates interest. With pay per click, you pay only for interactions with likely customers. Also, having pay per click ads on multiple websites can help business owners compare and contrast, thus determining which venues are good advertisement sites and which are not.

Now, one potential downside to pay per click advertising is that in the past, it’s been ripe for “click abuse,” or click numbers that are artificially inflated so as to amplify the cost. Search engines, like Google and Yahoo, have made strides in preventing click abuse, however.

These are only the very basic contours of pay per click advertising, but hopefully, this post has shown why pay per click advertising is an effective model for many small businesses.

If you’re interested in further, more detailed information, you can contact us. We would be happy to put our digital marketing expertise to work for you.

Mike Templeman

About Mike Templeman

Mike Templeman is the CEO and Founder of Foxtail Marketing. He is passionate about tech, marketing and startups. When not tapping away at his keyboard, he can be found spending time with his wife and kids. He is also Canadian... or more importantly, he is Canadian.

Foxtail Marketing is a digital marketing firm that provides content marketing, digital marketing, and lead generation services for small and mid-market companies.

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