Pay Per Click and Google AdWords Are Not the Same Thing

It’s important that you understand the distinction between pay per click (PPC) and Google AdWords.

Pay Per Click

PPC is a model of Internet marketing in which advertisers pay a fee each time one of their ads is clicked. Essentially, it’s a way of buying visits to your site, rather than attempting to “earn” those visits organically.

Google AdWords

Google AdWords is the single most popular PPC advertising system in the world. The AdWords platform enables businesses to create ads that appear on Google’s search engine and other Google properties.

AdWords operates on a pay-per-click model, in which users bid on keywords and pay for each click on their advertisements. Every time a search is initiated, Google digs into the pool of AdWords advertisers and chooses a set of winners to appear in the valuable ad space on its search results page. The “winners” are chosen based on a combination of factors, including the quality and relevance of their keywords and ad campaigns, as well as the size of their keyword bids.

Why is it important to understand the difference?

A lot goes into building a winning PPC campaign: from researching and selecting the right keywords, to organizing those keywords into well-organized campaigns and ad groups, to setting up PPC landing pages that are optimized for conversions. Search engines reward advertisers who can create relevant, intelligently targeted pay-per-click campaigns by charging them less for ad clicks.

If your ads and landing pages are useful and satisfying to users, your cost per click is lower leading to higher profits for your business. Understanding how you’re being charged for clicks is important. Is the cost of the click being artificially elevated? Are clicks coming from valid potential consumers or a complex system of fake networks designed to deliver the “agreed” upon number of clicks (don’t sign a contract that includes a pre-determined number of clicks). Fraudulent PPC schemes are endless. Don’t become a victim to click fraud.

Unfortunately wherever corruption can occur, it will. If you want to start using PPC, it’s important to do it right. Google AdWords accounts for 85% – 90% of all PPC. If you’re paying a company to generate a pre-set number of clicks know the reputation of the company well and educate yourself about the dangers of click fraud.

The goal of PPC advertising is not to accumulate clicks. The goal of PPC advertising should be the same as it is with most advertising, to generate leads at or below your average cost per lead.