PPC stands for pay-per-click. Pay-per-click advertising is a method of online marketing. In this method, you place ads in strategic places online. When any of your ads is clicked by a visitor you pay a fee. This is how the name pay-per-click came into being. 

Using this method, you buy visits to your site rather than attracting them naturally. If we take a closer look at a typical search results page on google, yahoo, or bing we find that the paid ads are placed at the top and organic results come underneath. On social media, the paid ads generally appear as posts on a feed, or as banner (sometimes scroll) ads on the side. There can be various other forms too. 

Today, social media like Facebook, Twitter, Instagram, YouTube, and even Pinterest— all have created the facilities of paid advertising.

This is the world of PPC.

How Does PPC Advertising Work?

It’s very simple. You offer a certain amount of money for clicks to your website. You either bid on keywords or on audiences. You set a bid for how much you are willing to pay for each click to your website.

Bids can really vary. For home decor, you can bid $1 to $2. For real estate, you might start bidding up to $5, $6, or even $7 depending on the market. Some lawyers or insurance companies could bid more than $20 or $30 for each click.

How much you pay depends on how much revenue each click can drive to your business. If you are a lawyer, as mentioned above, you can be willing to pay as much as $50 for every click because one client can very well get you thousands of dollars.

It finally depends on what keywords or what audiences you are targeting.

Beware Of Your Competitors

Another important thing is the other advertisers. If they are willing to pay much more than what you offer for every click on your ads, that clearly means that you are going to have trouble winning the auction.

Quality Score

This is another important thing that you must consider. 

Quality score is a method of grading of your keywords, ads, and landing pages. They grade on the basis of the quality experienced by the user when they search.

It is graded on a scale from 1 to 10 and based on factors such as click-through rate, ad relevance and landing pages experience. 

Deciding Whether To Use Professional PPC Services

Just because you show up at the top of the page and people click on your ad doesn’t mean you will automatically get tons of conversions.

Many people mistakenly think once they pick keywords and create the ads their portion of the work is done. 

In reality, it’s just the beginning.

You need to spend a fair amount of time into PPC marketing. PPC campaigns have to be closely monitored and managed in order to optimize ads and get a return on your investment. 

It’s not uncommon for businesses to enlist the help of professional marketers when they decide to launch PPC advertising campaigns.

Digital Marketers Can—

  • walk you through the PPC process
  • help you set up an Adwords account
  • research and select keywords 
  • create ad messaging
  • track performance metrics
  • provide general PPC management 

You can outsource a good number of customers with ease using them.

Management of your PPC campaigns should always include tracking the results, monitoring big prices, and making adjustments when necessary.

Google Analytics is the go-to resource for tracking the performance of PPD ads. 

Setting up tracking parameters and parsing through the data can be cumbersome. But it is essential. 

You’ll also need to make sure your website is completely set up and landing pages are in place before you begin running a PPC campaign. This could mean creating new pages specifically for your PPC traffic.

Main Advertising Channels

Once you decide to use PPC as a marketing tool the next decision is where to place ads.

There Are Three Primary Channels:

Google:

The lion’s share of PPC advertising is done through Google AdWords. 

Bing:

Bing provides a cost-effective PPC option that can be very lucrative if your market base regularly uses Bing for search purposes. 

Amazon:

Amazon is the new kid on the PPC block. The official term for their PPC service is Sponsored Products. Your products will show up when a user searches for a specific term. Each time the product is clicked you pay a fee. 

In Google and Bing, your PPC will show up at the top of the page, the bottom of the page, or to the right of the search results. 

Cost Per Click and Creating a Budget

Unlike clicks on links within the search results each clicks on a PPC ad comes with an associated cost. Cost per click or CPC is a crucial measurement in PPC advertising. It’s exactly like it sounds. CPC is how much you pay each time someone clicks your ad. This is crucial because each click costs your business money. It’s important to make those clicks count. 

Ads that are highly targeted in their messaging and keywords will provide better ROI since the people clicking are more likely to be motivated buyers. 

You can help keep costs in check by setting a budget. This will cap your PPC spend. 

Creating a Reasonable Budget Requires Knowing—

  • How many leads will it take to get a conversion?
  • How much is that conversion worth?
  • How big is the profit margin?

When you try to find answers to these questions you’ll get a better idea of how much to pay for each click. 

After that, you need to decide how you will spend the PPC budget. 

It can be spread out over a number of keywords used little by little each day or funneled to one single segment.

Final Words

Pay-per-click is a great way to promote your business and start the revenue winning run. But you need a clear concept of what you are going to do and how best you can do it.

It’s the business world that requires employing all your time, intellect, and money before you get through. Nothing comes easily and automatically. Every bit of your success will be preceded by severe competition.

Prepare yourself and good luck with your business!