Understanding PPC Advertising

Pay per click (PPC) advertising is an advertising system where the advertiser only pays for each click on their advert. Hence, pay per click. While the term is most often used to refer to the advertising system offered by search engines, such as Google, Bing and Yahoo!, PPC adverts are also run on content sites and social networks. PPC advertising continues to evolve, and formats available range from simple text adverts through to Flash banners and even video adverts. PPC advertising revolutionized the online advertising industry, and today, PPC advertising generates 99% of Google’s revenue. PPC adverts on search engines are easy to spot – they’re the results listed as “sponsored links”. They can appear on the top of the results page, usually in a box, and also on the right hand side of the results page. PPC advertising on search engines is keyword based – this means that it is based on the search term that a user enters into a search engine. A search term can have one word, or be made up of many words. Sometimes a multi- word search term is referred to as a “key phrase” or “keyword phrase”. Advertisers target those keywords for which they want to appear.

Conducting PPC marketing through AdWords is valuable because as the most popular search engine, Google gets massive amounts of traffic, delivering more impressions and clicks to your ads. How often your PPC ads appear depends on which keywords and match types you select. While a number of factors determine a successful PPC advertising campaign, much can be achieved by focusing on:

Relevance – Crafting relevant PPC keyword lists, tight keyword groups, and proper ad text.

Quality Score – Google’s rating of the quality and relevance of your keywords and PPC campaigns.


How it Works?

PPC advertising is used for a number of channels and platforms. Quite simply, the advertiser pays when a user clicks on an advert. On the display network CPM is also an option. However, there is a lot more that goes into the process. PPC advertising is usually run as an auction model, so advertisers place bids to appear based on certain criteria. The advertising platform determines when adverts are eligible to appear and serves them as appropriate. The advertiser then pays the advertising platform when their advert is clicked on.

A normal click through rate (when a visitor clicks on your PPC ad and goes to your website) for PPC advertising is around 2% but the return on investment (ROI) will vary based on your business. As an example, let’s say you receive 100 clicks a day and each click is $0.20. This means that your total cost for these clicks is $20. If you make $5 on each product you sell, you only need to have 4 of those clicks convert to a sale in order to break even. As you plan your next AdWords campaign, be willing to spend for results, but start by spending your creative energy first. How can you get the right message to the right people at the right time in a way that sets you apart from your competition? However, well written ads are only part of an effective pay per click search engine marketing campaign. Once your PPC Ad copy persuade a searcher to click, your landing page must now convert them. It should look professional and above all offer them what they were looking for in the first place. They will be more likely to convert into a customer or a lead if the page they go to gives them exactly what they were looking for. Appeal directly to your target audience with both your PPC ad and your landing pages and you will experience greater quality visitors and better conversions!

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