Pay Per Click Ads and Click-Through Rates Explained in Plain English

Quite a few years back when I was in directoryof the advertiser's website, or even a phone call to the
advertising, we all had to take a class in Pay Per Clickcompany.
Advertising. It was mandatory because the YellowMake a good impression
Pages Directory companies were beginning to see theEvery time your ad shows up after a search query,
emergence of search engines for what they were;you have made an impression. The number of
competition.impressions you get is connected to your ad budget
The major phone directories were teaming up with theand the competition for your chosen keywords. If you
major search engines; Google and Yahoo to sell PPCGoogled "yellow daffodil print T-shirts", you would see
to their customers. I had created quite a few websitesthat there are over 7,000 search results in the organic
by the time I entered advertising sales and even usedsearches and eight PPC ads for designs and T-shirts.
Google AdWords. but like most creative types, I didSo it all starts with the impression and then the click.
not get too involved in the math of Pay Per Click.The ongoing goal of every PPC campaign is to
If you are just getting up the nerve to investigate PPC,increase the click-thru ratio (CTR). That means getting
I'll give you a layman's version of how it works. Searchmore clicks each time surfers look up your keywords
engines direct surfers to web pages based on theand find your ad.
keywords in their searches. If I want to find "yellowTracking your progress
daffodil print T-shirts" That is most likely what I'll typeThe measure that advertisers use to gauge their ads
into a search engine.effectiveness is the Click-Through-Rate (CTR). This
There will be two types of results that come up on therefers to the number of clicks divided by the number
major search engines like Google, Yahoo and MSNof impressions.
etc.; organic search results; the result of websites thatIf you improve your ad's CTR by improving your ad's
have "yellow daffodil print T-shirts" in their web copy orrelevance to the surfers who are searching for your
headlines. The other search result will be advertisingkeywords you will then get better conversion. That
with the term "yellow daffodil print T-shirts" in theirmeans more people see your website and all things
headline or ad copy.being equal; you will convert more people to your
The first goal of every pay-per-click (PPC) ad is get awebsite's goal.
targeted lead to click on the ad and go directly to theAlways keep in mind that the goal is to achieve the
advertiser's website. The second goal is of courseconversion. Your goal is not to spend the most money
conversion; however that is defined by the advertiser iton PPC ads (I hope). Your goal is to get your visitor to
might be a sale, a subscription, a complete examinationtake the desired action that benefits your objective.