PPC is a skill that should have in your toolbox or at least have a basic understanding of. Although 45% of small businesses use some form of online advertising, many of us are unfamiliar with pay-per-click. This guide will help you understand pay-per-click marketing in its entirety.
What is PPC Marketing
Pay-per-click, or PPC, is a type of advertising in which you pay a fee to have your website appear on the search engine result page (SERP) when someone types in specific keywords or phrases.
The ads you create to direct visitors to your site will appear in the SERP, and the fee you pay is based on how many people click on your ad.
Real-time bidding (RTB) is used by advertising services such as Google Ads and Microsoft Ads, selling advertising inventory in a private automated auction using real-time data.
How does PPC work?
Pay-per-click, or PPC, is a paid advertising model used in search engine marketing (SEM). The advertiser only pays when people interact with their ad through impressions or clicks when using PPC.
Every time an ad spot appears on a search engine results page (SERP), an auction for the keyword occurs in real-time.
The winner who appears in the top position is determined by a combination of multiple factors, including bid amount and ad quality.
Most businesses begin their PPC marketing with Google Ads because it provides access to the largest audience of potential clients and customers, as well as a variety of different ways to set up and run campaigns depending on your goals.
Also read: What is SEO – Ultimate Guide for Beginners
Pay Per Click Terms and Definition
- Search Engine Marketing (SEM)
Search engine marketing (SEM) is a type of Internet marketing that involves increasing the visibility of websites in search engine results pages (SERPs) primarily through paid advertising.
The cost-per-click (CPC) is the fee paid by an advertiser for each click on your ad. CPC serves as your bid in an auction that determines where your advertisement will appear. As you might expect, a higher bid results in better ad placement.
- Ad Rank
This value determines an ad’s position on a search engine results page. It is equal to the sum of the Maximum Bid x Quality Score.
- Quality Score
This is the score that search engines assign to your ad based on the relevance of your keywords, the quality of your landing page, and your past performance on the SERP.
- Maximum Bid
This is the most you’re willing to pay per ad click.
You can set your CPC to manual (you determine the maximum bid for your ads) or enhanced (search engines adjust your bid based on your goals). Bid strategies that automatically adjust your bids based on clicks or conversions are one of these enhanced options.
- CPM (Cost per Mille)
CPM, or cost per thousand, is the cost per thousand impressions. It is most commonly utilized for paid social and display advertisements. There are other types of cost-pers… Such as cost-per-engagement and cost-per-acquisition (CPA).
The first step in creating PPC ads is deciding on an ad campaign. Consider your campaign to be the main message or theme you want to convey through your advertisements.
- Ad Group
A single size does not fit all. That is why, within your campaign, you will create a series of ads, based on a set of highly related keywords. For each ad group you create, you can specify a CPC.
Each ad in your ad group will target a different set of keywords or key terms. These keywords inform search engines about the terms or search queries that you want your ad to appear alongside in SERPs. Once you’ve determined which keywords perform best, you can set a micro CPC for those keywords in your ads.
- Landing Page
Your ad text should be informed by your keywords. Because your Quality Score is determined by the relevance of your ad, the text in your ad should match the keyword terms you’re targeting.
What is PPC Bidding?
A PPC bid (or keyword bid) is a bid placed in a pay-per-click auction to help secure ad placement at the top of search results in Google Adwords.
Structure of PPC account
A successful PPC campaign necessitates considerable thought and effort. You must conduct keyword research and select the most relevant terms, organize those terms into ad groups and campaigns, and create landing pages optimized for conversions.
Advertisers who have created uniquely targeted PPC campaigns are rewarded by search engines by charging less for each ad click.
The following is an overview of the structure:
- Campaign Settings
- Ad Group
- Keyword Selection
- Ad Copy
- Ad Extensions
Whether you started your business yesterday or have been in operation for decades, PPC may be the boost you need to gain an advantage over your competitors or at least rank higher in the SERPs.