This is a type of income in which the person click on the ad the company pay each time on online advertising. With the help of search Engine Optimization it is a way of buying visit to the website rather than to earn those organically. The users who search for a particular key word or visit the website the advertisers bid for that keyword to the target audience and the add is been displayed to the users.
PPC advertising can be an effective way to drive traffic to your website and increase conversions, but it requires careful planning, strategic bidding, and ongoing optimization to ensure that you are getting a good return on your investment.
The Ad which is competing in an auction the Google gives the Ad Rank. The criteria of the Ad Rank is based on several factors like maximum bid, Quality of the ad, and other ad formats.
Formula for Ad Rank is: Ad Rank = Bid x Quality Score x Expected Impact of Ad Extensions and other Ad Formats.
The factor Explanation
- Bid: For just clicking on add the advertiser wish to pay the maximum amount.
- Quality Score: The users search query can be measured by the metric. Quality Score takes into account factors such as the relevance of the ad copy and landing page, the historical click-through rate (CTR) of the ad, and the relevance of the keyword to the ad and landing page.
- Expected Impact of Ad Extentions and other Ad Formats: The expected impact that ad extensions and other ad formats, such as callouts and structured snippets, will have on the performance of the ad.
- The research procedure to find the target audience and market.
- Budget and timeline is been set for the campaign.
- The user click on the advertisement add they are directed to the advertiser website or landing page.
- Campaign strategy and creative material is been developed.
The Google creates the Ad words on the PPC advertising platform.