## What Is Paid Traffic?
**Paid traffic** is traffic that is generated through paid means only. Paid website traffic from search engines is directed to a website when a user clicks on an ad placed on a search engine results page for a particular [search query](https://growhackscale.com/marketing-glossary/search-queries).
The ad is created, and paid for, by the company using an ad platform like Google Adwords to try to appear first in [SERPs](https://growhackscale.com/marketing-glossary/serp).
## How Does Paid Traffic Work?
When site managers want to create paid ads, their first port of call is usually automated open-auction platforms like Google Ads. Google establishes a price for a keyword and companies then bid on the keyword.
Google will then evaluate:
- Your maximum bid generally quantified by [PPC](https://docs.google.com/document/d/1gx4cOpZFFxTKlV1ztMjeXe_lEYJqj7MHmn5jWV8CPRQ/edit#)
- The relevance of your proposed ad and how it relates to the keyword being bid on
- A [Quality Score](https://growhackscale.com/marketing-glossary/quality-score-cpc-advertising) - an assessment of [CTR](https://growhackscale.com/marketing-glossary/click-through-rate-ctr), ad relevance and [landing page](https://growhackscale.com/marketing-glossary/landing-page) quality
## How Does Google Decide Where to Rank Your Ad?
When you look at the SERPs for any given keyword, you’ll see that there are a few ads both at the top and bottom of the page.
If there are lots of bids for the same keywords, Google assigns an Ad Rank to your ad which determines the position within SERPs where the ad will appear.
Google uses the basic formula **Quality Score X Max Bid = Ad Rank = Search Position**
Remember that you can lower your [CPC](https://growhackscale.com/marketing-glossary/cost-per-click-advertising) with a higher Quality Score. By ensuring your ads are relevant, targeted and creative, you can actually save money from your marketing budget.
## Why Is Paid Traffic Important?
Unlike [organic traffic](https://growhackscale.com/marketing-glossary/organic-traffic) which is a longer-term investment, paid ad campaigns can be more lucrative in the short term.
All a business has to do is launch a paid ad campaign and theoretically, it will drive targeted traffic to their site.
While some technical knowledge is required to get going in the beginning, paid ad campaigns can be simpler to run with fewer people involved and less long-term planning.
Often paid traffic is a great option if your business can own a high-value trending keyword during peak seasons or when a topic is trending.
## Paid Traffic vs Organic Traffic
The main downside of paid website traffic is that it can become pricey to maintain ad campaigns all the time. Paid ads only run for as long as they’re funded.
When CPCs increase too much or marketing budgets drop, it’s hard to sustain ad spend.
It’s a good idea to combine paid traffic strategies with organic traffic to ensure your site has an [evergreen strategy](https://growhackscale.com/blog/how-to-increase-organic-traffic) that consistently brings in high-quality traffic.
[SEO](https://growhackscale.com/marketing-glossary/search-engine-optimization) is one of the best ways of boosting organic traffic and improving the ranking of your site in SERPs.
### How Can We Help?
Struggling to get started with paid ad campaigns or [SEO strategies](https://growhackscale.com/marketing-glossary/seo-strategy)? Get in touch and we’ll arrange a free consultation session to get you started.
In the meantime, why not start one of [our training courses](https://growhackscale.com/academy) so you can get started on your marketing strategy now.