Pay-per-click advertising: What is PPC and how does it work?

Whether you have heard very little about PPC marketing and you are eager to learn more, or you already know that you want to use PPC to market your business, but do not make sure that Where to start, you came to the right place! This is the first lesson at PPC University, a set of three guided courses, that will teach you everything you need to know about PPC and how to make it work for you. Pay-per-click advertising: What is PPC and how does it work?

First, we will need to define PPC and establish a basic understanding of how PPC advertising works. let’s go!

Pay-per-click advertising: What is PPC and how does it work?

What is PPC?

PPC means pay-per-click, a model of Internet marketing in which advertisers pay a fee each time they click on one of their advertisements. Essentially, it is a way to purchase visits to your site, instead arranging those visits as “income”.

Search engine advertising is one of the most popular forms of PPC. This allows advertisers to bid for ad placement in a sponsored link to a search engine when a person searches on a keyword that relates to their business offering. For example, if we bid on the keyword “PPC software”, our ad may appear in the very top position on the Google results page.

How does pay-per-click advertising work?

Pay-per-click (PPC) advertising is a broad category, covering a wide variety of platforms and mediums. However, most PPC advertising campaigns can fit into one of two categories: Google advertising and social media advertising.

Google PPC Advertising

How does PPC work on Google ads? In a PPC campaign, you pay Google, but you want them to list ads at the top and right of organic search lists for your site. When someone clicks on your ad, you pay the current cost per click (CPC) from your budget. Once your entire budget is exhausted, Google stops running your ads until you have replenished your funds. There are several types of Google ads, including: search advertising, local search advertising, display advertising, and re-marketing.

Search Advertisement

Google search advertising is probably the most recognized form of pay-per-click advertisements. These ads appear above or next to Google search results in response to a search by a user. Therefore, if someone discovers the product or service you offer, your ad may be the first thing they see; But, through the PPC model, you only have to pay when you click on that advertisement.

Budget and bids

To participate in the auction, advertisers must decide how much they are willing to spend on a given keyword.

This is done using bids at the campaign level and at the ad group or keyword level.

The budget is set at the campaign level and can be exceeded daily, but will not be monitored monthly.

Budgets should be set according to the overall account strategy, but bids are a more accurate way of controlling spending.

All ad groups must have bids, but keyword-level bids override ad group-level bids.

Many advertisers use automated bidding strategies.

These allow advertisers to set a specific target for their campaigns and then the advertising platforms determine the most appropriate bid for each auction.

Bid strategies can be applied to individual campaigns or portfolios of multiple campaigns.

Due to the RTB system, the actual amount paid by the advertiser is dependent on competitive activity and ad rank, not just the maximum bid.

Ad rank

There is more to winning the auction than having the highest bid.

Search engines look at other factors to determine which ads should be at the top and most valuable position in the SERP.

Other elements of search engines have their own special methods of factoring in determining ad rank.

For example, Google understands:

  • Bid amount
  • Relevance and quality of advertising.
  • Search context (such as user’s device and time of day).
  • Format effects (eg, this includes extensions that enhance the format of the advertisement).

Re marketing or Retrieval

Re marketing ads are shown to people who have visited your business website or mobile app in the past. These ads can help you reconnect with visitors who have expressed interest in your products or services, and can help encourage conversions. These ads can appear on the Display Network or as search ads, and are priced on an automated bidding model. There are a few additional steps to set up, but it may be worth the dramatically increased click and conversion rates to limit your ad audience to those who have already formed a relationship with your business.

Managing your PPC campaigns:

When you have created your new campaigns, you need to manage them regularly to ensure that they remain effective. In fact, regular account activity is one of the best predictions of account success. You should continuously analyze your account performance to optimize your campaigns and make the following adjustments:

  • Add PPC Keywords:

Expand the reach of your PPC campaigns by adding keywords relevant to your business.

  • Add negative keywords:

Add non-changed words as negative keywords to improve campaign relevance and reduce wasted spending.

  • Split Ad Groups:

Improve click-through rate (CTR) and Quality Score by dividing your ad groups into smaller, more relevant ad groups, which help you create more targeted ad text and landing pages.

  • Review expensive PPC keywords:

Review expensive, under performing keywords and turn them off if necessary.

  • Refine Landing Pages:

Modify the content and call-to-action (CTAs) of your landing pages to align with individual search queries to boost conversion rates. Do not send all your traffic to the same page.

Conclusion: PPC and Digital Marketing

At 1 Weblab, Digital Marketing Company in Delhi, we provide best PPC services, Therefore, we can say with confidence that PPC should never be part of your digital marketing campaign. However, we believe in comprehensive marketing systems, in which PPC can play an important role.

With a clear understanding of how PPC works, your next step should be to ask: How does PPC work for my business in the context of my overall marketing campaign?

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