Pay-per-click advertising means that you pay each time a potential customer clicks your ad. You pay up to your bid amount for keywords, but not more. Here’s a quick overview on how PPC advertising works:
When customers do a search in Bing, AOL, or Yahoo, your ads that contain the matching keywords will display. For example, let’s say you want to create ads for the different types of tea you sell. To show an ad, keywords can be:
The space to show ads on the search results page is limited. To determine which ads will display where on the search results page, Bing Ads auctions off these spots. Your ad position is determined by your bid and other performance criteria.
Every time your ad displays, this is what we call an impression. But you only pay the bid when your ad is clicked, not when your ad is displayed, and the maximum amount you pay is your bid.
But this is only the beginning. Now that you've got the basics on how it works, take a look at How to get your campaigns up and running in Bing Ads for more information on how to get started on your own PPC campaign with Bing Ads.