Pay Per Click Advertising FAQs PDF Print E-mail

Pay Per Click Advertising FAQs

In addition to our own answers below, we have provided links to the main support and FAQ sections of the major PPC advertising providers.

Google AdWords

Google AdWords FAQs Help Center

Yahoo Search Marketing

Yahoo Search Marketing FAQs Help Center

MSN AdCenter

Microsoft AdCenter FAQs - Digital Advertising Solutions

Additional PPC Advertising Solutions

There are several other PPC advertisers, especially for e-Commerce businesses that sell products online. We will analyze your business and recommend the best PPC provider or combination of advertising solutions that meet your needs.

Additional Answers to Your PPC Questions

Q: Where will my ads be displayed?

A: When Internet users in your target market search using one of your keywords or keyword phrases, your ad will appear either at the top of the search results or to the side of the results under sponsored links. The placement of your ad depends on the amount you bid for the specific keyword. Usually, the top 3 bidders will be listed above the organic search listings. It is also possible to be listed in an advertising network. In an advertising network, you can have your advertisement listed on other websites that are placing ads for your keywords. For example, if you are advertising a computer part, you can choose to have your ad run on sites that discuss or feature computers or computer equipment. This is optional. You can even choose to advertise on specific sites although the cost structure is per impression and not per click.

Q: What is an impression?

A: An impression is when your ad appears on the page. If your ad shows up 100 times during the course of a day then you would have 100 impressions recorded for that day. Impressions don't cost you anything. You only pay when someone clicks on your ad.

Q: When will my ads be displayed?

A: Your ads will be displayed almost immediately after your account is set up. Among several other things, when you set up your account, you choose a daily budget, a monthly budget, and a maximum amount you are willing to bid on each of your keywords. Each time someone from your target audience searches on one of your keywords, your ad will be displayed. If someone clicks on your ad, the amount you bid will be deducted from your daily budget. Once your daily budget has been reached your ad will stop displaying. However, there are several options available and some exceptions to this basic formula. See below.

Bid Amounts and Budgeting

Your maximum bid is not always what you pay for a click. Your bid amount is determined at the exact moment your ad is displayed based on what other advertisers for that keyword are bidding. For example, if you are willing to bid up to $1.00 for a keyword, if the next highest bid was 25 cents, you would only pay 26 cents for the click.

You can choose to have your ad displayed as quickly as possible until your budget is maxed out for the day, or you can choose to stagger it throughout the day, so that your budget will last. The first option will display your ad every time as long as your bid is high enough. The second option will display your ad intermittently to ensure your budget lasts throughout the day. This is all managed automatically by the PPC advertiser based on search volume. Every day, you start over with your new budget.

Third, it is possible to go over your daily budget by 20% to account for daily fluctuations in search volume. To keep you from missing opportunities, your ad may be displayed after your budget has been maxed out for the day. However, the system will average out your daily budgets to ensure your monthly budget is not extended.

Q: What is a conversion? Conversion rate?

A: A conversion is a pre-defined goal set by you such as a sale of a product or when a visitor requests more information from you. When a customer clicks on one of your ads, you can track that visitor on your website. If that visitor completes an action that is one of your pre-defined goals, that is considered a conversion. When you advertise with PPC ads, you can measure everything. The total number of conversions divided by the total number of visits to your website generated by your PPC ad is your conversion rate.

Q: What is Click Through Rate (CTR)?

A: When someone clicks on one of your PPC ads and goes to your website that is called a click through. The total number of click throughs divided by the total number of impressions (the number of times your ad was displayed) is called the click through rate or CTR.

Q: What if a competitor or person keeps clicking on our ad continuously? Won't this cause or budget to run out in a few minutes?

A: No. Such behavior is called click fraud and is monitored by your PPC provider. We also monitor any suspicious activity through our reporting system. When a person clicks on your ad, their IP address (a numerical and unique network identification of their computer) is recorded. Additionally, their behavior is momentarily tracked to make sure you have a good quality visitor responding to your ad. Multiple clicks or clicks that instantaneously leave your site are analyzed for click quality and usually not charged to your account or are credited automatically shortly afterwards. In any case, don't click your own ads.