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Digital Marketing

What Is PPC? Complete Guide To PPC

What is PPC?

PPC, also known as pay-per-click advertising or pay-per-click marketing, is a digital marketing strategy that helps you increase awareness of your business, attract potential customers to your website and boost conversions.

You have many options for where your PPC ads appear, giving you control over which audiences see your ads, and how you target your most valuable potential customers.
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PPC is one of the most profitable digital marketing strategies out there because it lets you decide the maximum amount you will pay for your ads. You can contact PPC Management Services Agency

It’s too good to be true, isn’t it? Fake!

With traditional marketing strategies like placing a newspaper ad or advertising your business on a billboard, you’ll pay a set budget — but are you even sure how many customers are seeing that ad?
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It doesn’t matter if 10 potential customers see your ad or 1,000 – you’ll pay the same price for that newspaper ad or billboard.

The difference with PPC advertising is that you only pay for your ad when a user clicks on it. That’s it, that’s it! With PPC ads, you don’t pay for ad space, you pay for action.

That said, you can be sure that the ROI of a PPC campaign is high because you never pay for an ad unless there is potential for conversion (someone clicking on your ad and ending up on your website).

When a user clicks on your ad, they are taken to a landing page . A landing page usually consists of a form for users to take action and buy the product or learn more about the product. Either way, your landing page inspires users to take the next step in the buying process, whatever that may be.

There are a lot of complexities to PPC, so in the next section, we’ll talk about exactly how PPC works for your business.

How does PPC work?

A few different stages encompass PPC.

In most cases, however, when people ask how PPC works, they are curious about the auction process. How do ad networks, like Google Ads or BING, decide to serve their ads? What happens during the auction and how does it impact PPC costs?

Let’s start with an overview of how the PPC auction works for search ads:

  • A user is looking for something, like “living room rugs”.
  • A search engine, like Google, determines whether advertisers have bid on that keyword or the search.
  • If this is not the case, the search engine provides its search results without advertising.
  • If so, the search engine launches its auction
  • The search engine ranks, ranks and compares advertisers’ ads based on specific factors.
  • The search engine shows the winning ads in its search results and charges advertisers.

The list above is a brief description of the ad auction process.

When it comes to the ad auction itself, there are several steps and factors ad networks take to deliver the most relevant advertising to users. While you can watch each ad network’s auction, when most people ask how PPC works, they’re asking how PPC works on Google Ads. escort alsancak

So, let’s look at the auction on Google Ads:

Once Google launches an ad auction, it looks at the following factors:

  • Ad Rank: Google bases your ad rank on your ad’s bid, quality, ad extensions, and expected click-through rate (CTR). Your landing page experience also influences your ad ranking. Other factors, like the user’s search and past behavior, as well as the bid’s competitiveness factor in your ad rank. Google calculates your ranking at each auction.
  • Bid: Your bid is the amount you’re willing to pay for someone to click on your ad. In most cases, your bid will be keyword-specific, meaning you’ll pay different amounts for different keywords. A high bid does not equal a win. You can bid low and still win the auction with high-quality advertising, which is what you want.
  • Quality Score: Google calculates your Quality Score based on your ad’s relevance to user searches, as well as landing page experience and expected CTR. Quality Score helps Google estimate the quality of your ads, keyword targeting, and landing pages. You can check your Quality Score in Google Ads, giving you a starting point to improve your Quality Score and Ad Rank.

These three factors are combined in the following formula:

Offer x Quality Score = AdRank

Once Google determines your ad rank, it determines your ranking in search results.

A higher ad rank equals a higher position in search results. If you have the highest Ad Rank, you will win the auction. Even if you don’t win the auction, you can still earn a spot in search results, albeit lower than higher quality ads.

After this step, Google calculates your cost per click (CPC) or what you pay for a click on your ad:

Rank of advertiser above you / Quality Score + $0.01 = Your CPC

Once this step is completed, the PPC ad auction finally ends.

What are the different types of PPC ads?

If you thought you could only advertise in search engines, you were wrong! Take a look at the different types of PPC ads you can use to market your business:

ADVERTISEMENTS ON SOCIAL MEDIA

With billions of users on different social media platforms including Facebook, Twitter and Instagram, advertising can only benefit your business.

Chances are there are more than a few users interested in your products and services given the huge following, so social media is a great place for PPC ads.

One of the best features of social media ads is that you can target your ideal audience based on your demographics, interests, location, and more.

Not only do they bring more potential customers to your website to convert, but they also increase brand awareness exponentially .

It is important to note that the more human your social media ads are, the more successful you will be. In a study by the University of Oxford, they found that context matters . Their studies have shown that when brands tap into user emotions, they perform better from an advertising perspective.

SEARCH ADS

Search ads are among the most common PPC ads.

Search ads appear in search engines like Google and Bing, and they’re keyword-targeted.

When you enter a search query into a search engine, it is up to that search engine to return the best results to the user. They want to provide you with the results that are most likely to inspire you to make a purchase, and keyword-targeted PPC ads are a great way to do that.

These advertisements appear above the organic results, and they are marked with the small “Ad” logo. These are PPC text ads, but you can also opt for ads that show an image of your product.

These can also appear above the organic results, but sometimes they also appear on the right side of your search.

DISPLAY ADVERTISEMENTS

If you’re looking to increase brand awareness, display ads are a great option for you.

These ads are the ones you see as a banner, image, or even text on the various websites you visit.

The reason they’re great for increasing brand awareness is that they appear almost unconsciously on the pages you like to read.

Think of the last time you read a blog and a Starbucks advertisement popped up at the top of the screen. Although you think you didn’t pay attention to the ad, you probably got Starbucks later in the week.

 

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