This is quite a general question. Pay per click advertising is one of, if not, the most used form of online advertising around the world. This is no coincidence. There are elements within PPC that makes it a valued tool to be used by millions of advertisers. However, it is probably better to say what makes AdWords so good since the PPC market is dominated by Google AdWords. If I had to choose between Ad Dynamo and BuySellAds, I would go 100% with BuySellAds. Putting this aside, here are a few of the main reasons, I believe, that makes PPC and Google AdWords ‘so good’.

Advertiser: Publisher Ratio Is Balanced

This is, by far, the most important aspect to a good PPC program because here is what happens if they are unbalanced:

• If there are two many advertisers, the CPC for keywords will increase as competition has increased. This means a PPC campaign that would have cost $500 will now cost, lets say, $700 (however, this is all good for the publisher!).
• If there are two many publishers, the CPC will decrease as supply has increased while demand has stayed the same. This means that publishers will only ever earn cents per click and advertisers may find that their adverts are being displayed on low quality websites.

The best PPC programs have a magic ratio where the number of advertisers and publishers work in the favour of each other. For AdWords, this is the case. For Ad Dynamo, well, they need to still get up to that magic ratio…

Click!

A great benefit to PPC is the fact that advertisers only ever have to pay for results. If an advertiser’s PPC campaign has been viewed millions of times by people worldwide but not been clicked on, the advertiser will not have to pay a single cent. This makes pay per click advertising the perfect advertising tool to budget with. For example, although banner advertising is set at fixed prices, you are not guaranteed results for the budget you have spent. In PPC, you know the money in your budget will be converted into results through PPC.

Bidding

The bidding element to PPC is also crucial to the success of PPC in general. Without bidding, it would be much harder to attract publishers to PPC. If there are no publishers in PPC, the magic ratio will go and PPC will, ultimately, become rubbish. As well as this, bidding also makes it possible to budget a campaign and make it run for a cheaper price. In AdWords, you set the maximum price you want to pay for a click on your PPC advert. If other advertisers bid higher than you, they will win and get the placement of their advert on search results or a publisher’s website. If you are the highest bidder, you will get the placement. However, the great thing about this is that if you can become the highest bidder without reaching your maximum, you will get the placement for that price. For this reason, many campaigns over estimate their budget since they are not always paying the CPC of their maximum.