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: The keyword matches the customer’s search exactly (for example, “premium green tea”).
- Phrase match: The customer’s search contains the same words and in the same order as the keyword. The search query can also contain other words (for example, “green tea”).
- Broad match: Any words in the keyword appear, in any order, in the customer’s search (for example, “premium tea”).
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.