Pay Per Click Advertising (PPC)

How does PPC it work?
Google operates a quality assessed system so there are more factors to how well your ad performs beyond the amount you bid on a word.
Google says that;
Your Cost Per Click (CPC) * Relevance Score = Google Score

However it is easier if we replace Relevance Score with Click Through Ratio (CTR) as this substitutes a variable we can asses and monitor, so now our formula is;
Your Cost Per Click (CPC) * Your Click Through Ratio (CTR) = Google Score

The reason for this substitute is simple, if we have a high click through ratio then we must be writing good Ad copy and it must be relevant to the searching user. Let’s look at how this can affect adverts using an example.

If Advert 1 has a 10% CTR * 50pence CPC = its Google Score will be 500
If Advert 2 has a 20% CTR * 30pence CPC = its Google Score will be 600

Therefore Advert 2 will appear above Advert 1 whilst costing less per click, this allows the manager of Advert 2 two options, either they operate at the same level (the same amount of clicks) as their rival on a smaller budget, or for the same budget as Advert 1 Advert 2 can receive more clicks during a monthly period.

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