What is pay-per-click (PPC) advertising?

What is pay-per-click (PPC) advertising?

Pay-per-click advertising means that you pay each time a potential customer clicks your ad. You pay up to your bid amount, but not more. This walkthrough shows how PPC works.

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:

  • Exact match: Search queries that match the keyword exactly, including some close variations. For example, if your keyword is [red flower], only searches for red flower will trigger your ad.
  • Phrase match: Search queries that contain all of the words in your keyword, in the same order - even if other words are present in that query. For example, if your keyword is "red flower", searches for big red flower and red flower dresses will trigger your ad, but yellow flower and red aromatic flower won't.
  • Broad match: Search queries that contain the words in your keyword or concepts related to your keyword. For example, if your keyword is red flower, related searches like red flower, crimson poppies, and buy crimson flower might trigger your ad.

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.

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