What if we were to tell you that there was a world in which the advertiser pays only when someone clicks on their ad? Well, here we are. Allow us to introduce you to PPC advertising. Using PPC for online advertising can be an effective way for advertisers to reach potential customers, generate leads and sales, and achieve specific marketing objectives while maximizing their return on investment (ROI) on ad spend.
In this post, our digital marketing experts at Digital Logic explain the meaning of “PPC” and how it can benefit your business.
What is PPC?
PPC stands for Pay-Per-Click. This is a type of digital advertising model where advertisers pay a fee every time their ad is clicked. PPC is used in search engine advertising when advertisers bid on keywords related to their business and create ads to appear at the top of a search engine results page (SERP) when someone searches for those keywords.
PPC is an effective way to drive targeted traffic to a website and increase brand awareness, as advertisers only pay when someone clicks on their ad.
Pay-Per-Click advertising opens up a world of possibilities in the digital marketing landscape. However, to truly understand PPC marketing, you must first understand what it is composed of.
Below are the definitions and examples of relevant keywords that typically go hand-in-hand with PPC.
CPC stands for Cost-Per-Click. This is a metric that measures the cost of each click on an advertisement. It is commonly used in digital advertising, particularly in Pay-Per-Click (PPC) campaigns.
Cost-Per-Click (CPC) is calculated by dividing the total cost of the campaign by the number of clicks it received.
In the world of paid advertising, this is a very important metric for advertisers as it helps them determine the effectiveness of their advertising campaigns and make informed decisions about their advertising budgets.
CPM is yet another relevant acronym in PPC marketing. CPM stands for Cost-Per-Thousand, which is a metric that measures the cost of displaying an advertisement to one thousand viewers or impressions.
CPM is calculated by dividing the total cost of the campaign by the number of impressions it received, then multiplying by 1000.
Search Engine Marketing (SEM) is a type of digital marketing that involves promoting a website by increasing its visibility in a search engine result page through paid advertising and optimization techniques.
SEM includes two main strategies: Paid Search Advertising and Search Engine Optimization. SEM is an effective way to drive targeted traffic to a website and increase brand awareness while allowing advertisers to reach potential customers at the moment they are searching for products or services online.
Ad Rank is a metric used in PPC advertising to determine the position of an ad on a search engine results page (SERP). The formula for Ad Rank is typically as follows:
Ad Rank = Bid x Quality Score x Expected Impact of Ad Formats
The higher an ad’s Ad Rank, the higher its position on the SERP. Advertisers can improve their Ad Rank by optimizing their bids, improving the quality of their ads and landing pages, and taking advantage of ad extensions and other ad formats.
A maximum bid is the highest amount an advertiser is willing to pay for someone to click on their ad.
The Quality Score is a metric that measures the relevance and quality of an ad and its landing page to the user’s search query. It is a rating system used by search engines like Google Ads and Bing Ads to determine the position of an ad on a search engine results page and the cost per click (CPC) of an ad.
A Campaign in Pay-Per-Click marketing is a set of one or more Ad Groups that share a common goal or objective. A PPC campaign is typically created around a specific product, service, or specific marketing objective, such as generating leads, increasing website traffic, or promoting a sale or special offer.
Each PPC campaign has its own budget, targeting options, and bidding strategy and can be customized to target specific audiences, locations, and devices. Advertisers can create multiple campaigns within a single PPC account, each with its own set of goals and objectives.
A Campaign in Pay-Per-Click marketing is a set of one or more Ad Groups that share a common goal or objective.
A PPC campaign is typically created around a specific product, service, or specific marketing objective, such as generating leads, increasing website traffic, or promoting a sale or special offer.
Each PPC campaign has its own budget, geofencing targeting options, and bidding strategy and can be customized to target specific audiences, locations, and devices. Advertisers can create multiple campaigns within a single PPC account, each with its own set of goals and objectives.
Keywords in PPC marketing are the words or phrases that advertisers bid on to trigger their ads to appear on search engines or other advertising platforms. Advertisers can bid on a wide range of keywords related to their business or industry, including product names, brand names, and generic terms. Keywords are an essential component of PPC advertising, as they determine when and where an ad will appear to potential customers.
Ad Text refers to the written content of an advertisement that appears on SERPs, typically including a headline, description, and display URL. Ad Text is the primary way for advertisers to communicate their message and attract potential customers.
A landing page is a web page that a user is directed to after clicking on an advertisement. The purpose of a landing page is to provide more information about a product or service being offered and to persuade the user to take a specific action, such as to make a purchase, fill out a form, or download a resource.
What is an Example of PPC?
When you Google something, you may notice the top results have the word Sponsored above them. This ad placement is secured through a PPC campaign. Below, we’ll provide an example of PPC ads related to the search query “Shreveport gyms.”
How Does PPC Work?
PPC advertising works by allowing advertisers to bid on specific keywords or phrases that are relevant to their business or industry. When a user searches for one of these keywords on a search engine like Google, the search engine displays ads that are relevant to the user’s search queries. Advertisers are then charged a fee every time a user clicks on the ad, hence the name Pay-Per-Click.
Here’s how the process works in more detail.
- Advertisers create an ad campaign on a PPC platform such as Google Ads, which includes a set of keywords, ad text, and a bidding strategy.
- When a user searches for one of the keywords in the campaign, the PPC platform’s algorithm determines which ads are most relevant and displays them at the top of the search results page.
- Advertisers are charged a fee each time a user clicks on their ad, which is the cost per click (CPC) determined by the bidding strategy and the quality score of the ad.
- Users who click on the ad are directed to a landing page where they can learn more about the product or service being advertised and take a specific action, whatever that may be.
What Are the Benefits of PPC Advertising?
There are a number of benefits that come with PPC advertising. PPC advertising is an effective way for advertisers to reach potential customers who are actively searching for products or services related to their business and to generate leads and sales through targeted advertising.
Advertisers can control their advertising spend, track the performance of their campaigns, and make adjustments based on performance data to improve their results over time.
PPC ads can generate immediate results, as they appear at the top of search engine results pages (SERPs) and can drive traffic to a website or landing page within minutes of launching a campaign.
PPC ads are cost-effective, as advertisers only pay when someone clicks on their ad. This means that advertisers can control their advertising spend and get a better return on investment (ROI) for their advertising budget.
PPC ads are flexible, as advertisers can make changes to their campaigns in real time based on performance data. This means that advertisers can adjust their targeting, bidding strategy, and ad copy to improve their results and achieve their marketing objectives.
PPC ads allow advertisers to target specific audiences based on factors such as location, demographics, interests, and search history.
This means that advertisers can reach potential customers who are more likely to be interested in their products or services.
When a business is first starting out, it can take a while for them to receive organic traffic through SEO alone. PPC ads allow newer websites with lower domain ratings to appear at the top of search engines without the effort that comes with generating organic search results.
If you find that you aren’t receiving many clicks on your PPC ads, no harm is done. But, if the ads are successful in generating clicks, then you can use this information to improve your SEO efforts.
SEO vs. PPC
In terms of SEO and SEM, there’s an age-old debate.
SEO (Search Engine Optimization) and PPC (Pay-Per-Click) are two very different digital marketing strategies that can be used to increase website traffic and improve online visibility.
What’s the Difference Between Organic Search Marketing and Google Ads Management?
Some of the key differences include the following:
SEO is generally considered to be a more cost-effective and long-term strategy, as it involves optimizing a website’s content and structure to improve its ranking in organic search results. PPC, on the other hand, involves paying for each click on an ad, which can be more expensive in the short term.
As we mentioned, SEO is more of a long-term strategy that requires ongoing optimization and maintenance. As such, it can take several months or longer to see significant results. Meanwhile, PPC can generate immediate results, as ads can appear at the top of a search page within minutes of launching a PPC campaign.
PPC provides more control over ad placement, targeting, and messaging, as advertisers can bid on specific keywords, target specific audiences, and create custom ad copy. SEO is subject to the ever-changing algorithms of search engines, which makes it harder to control the ranking of a website in organic search results.
SEO tends to generate higher-quality traffic, as users who click on organic search results are often more likely to be interested in the content of the website.
Meanwhile, PPC advertising can generate a mix of both high and low-quality traffic, as users may click on ads without necessarily being interested in the content of the website.
Overall, both PPC and SEO can be effective digital marketing strategies, and the choice between the two will depend on the specific goals and needs of the business in question. However, many businesses choose to utilize both strategies together for maximum impact.
How to Build Successful PPC Campaigns
Here’s how you can start building successful PPC campaigns for your small business.
Set Up Google Analytics
Here are the steps to set up Google Analytics:
Go to the Google Analytics website (https://analytics.google.com/) and sign up for an account. You’ll need a Google account to do this.
Once you’ve signed up, you’ll be prompted to create a new property. This is where you’ll enter information about your website, such as the URL and industry category.
After you’ve created a new property, you’ll be provided with a tracking code. Copy this code and add it to every page of your website just before the closing </head> tag.
Once you’ve added the tracking code to your website, you’ll need to verify that it’s working properly. You can do this by going to the Real-Time section of Google Analytics and checking to see if data is being collected.
To track specific actions on your website, such as form submissions or product purchases, you’ll need to set up goals and conversions in Google Analytics. This will allow you to track the success of your marketing campaigns and optimize your website for better performance.
Set Parameters for Google Ads
Here’s how to set parameters for Google Ads:
Choose the type of campaign that best fits your marketing objectives.
Choose the geographic location that you want to target with your campaign. You can target specific countries, regions, cities, or even a radius around a specific location.
Choose the keywords or phrases that you want to target with your campaign.
Choose the format of your ads, such as text, image, or video. You can also choose the size and placement of your ads.
Google Ads offers several bidding strategies. Choose the bidding strategy that best fits your marketing objectives and budget.
Choose the days and times that you want your ads to be displayed.
Set a daily or monthly budget for your campaign. Keep in mind you can adjust your budget at any time based on the performance of your campaign.
Create Goals Using Specific Marketing Metrics
Creating campaign goals is an important part of PPC advertising. Below are some examples of goals derived from specific marketing metrics.
Lead generation is the process of identifying and cultivating potential customers for a business’s products or services. It involves using various marketing and sales tactics to attract and engage potential customers and collect their contact information, such as name, email address, phone number, etc. The goal of lead generation is to create a pool of qualified leads that can be further nurtured and converted into paying customers.
Brand awareness is the extent to which consumers are familiar with and recognize a particular brand name or logo.
Having a strong brand awareness can help a business to stand out from its competitors, increase customer loyalty, and drive sales.
It is also an important factor in building trust and credibility with consumers, as they are more likely to choose a brand that they recognize and trust.
Offer promotion is a great way to advertise a specific product or service. This refers to the use of special deals or discounts to encourage customers to purchase a product or service. These promotions can take many forms, such as limited-time offers, buy-one-get-one-free deals, free trials, and loyalty rewards.
Website traffic is a crucial metric in marketing, as it measures the number of unique visitors to a website and their behavior while on the site. A high volume of website traffic can indicate strong brand awareness and effective marketing efforts, while low traffic may suggest a need for improvement.
Ultimately, the end game for PPC marketing and search engine advertising, in general, is to make a sale (or obtain a client, depending on what type of service you offer). Keeping track of sales converted through PPC can tell you exactly how successful (or unsuccessful) your PPC campaign is.
Choose Ad Campaign Type
These ads appear at the top and bottom of the search results and are marked with a small “Sponsored” label to distinguish them from organic search results.
Google Display Ads are a type of online advertising that appear on websites and mobile apps that are part of the Google Display Network. These ads can be in the form of banner ads, image ads, video ads, or text ads, and they are displayed to users who are browsing websites or using mobile apps that are relevant to the advertiser’s target audience.
Local Service Ads, or LSAs, appear at the top of Google above the regular search ads and organic results.
They are designed to help local service providers connect with potential customers who are searching for their services in a specific geographic area.
Social media ads are advertisements that appear on social media platforms such as Facebook, Instagram, Twitter, LinkedIn, and Pinterest. These ads can be in the form of images, videos, or text, depending on the specific social media platform.
Remarketing ads, also known as retargeting ads, are a type of online advertising that targets users who have previously interacted with a website or ad. Remarketing ads can be used to target users who have abandoned a shopping cart, visited a specific page on a website, or engaged with a brand’s social media page. These ads can be displayed on a variety of platforms, including Google Ads, Facebook Ads, and other ad networks.
Learn more: What is Retargeting in Digital Marketing
Google Shopping Ads are a type of online advertising that appears on Google SERPs. These ads display product images, prices, and other information, allowing users to compare products and prices before clicking through to a retailer’s website.
Finding keywords that are relevant to your business or industry is an imperative part of the PPC process. It involves identifying and analyzing the most relevant and profitable keywords that potential customers are using to search for products or services similar to what your business offers.
By conducting comprehensive keyword research, PPC advertisers can target their ads to the right audience, increase the visibility of their brand, and drive more relevant traffic to their website.
In addition, effective keyword research enables advertisers to optimize their ad campaigns by identifying the most cost-effective keywords, maximizing their return on investment, and staying ahead of their competition.
Set Up Tracking
To set up Google Analytics to track the performance of your PPC campaigns, the first step is to link your Google Ads account to your Google Analytics account. This allows you to see how your PPC campaigns are driving traffic and conversions on your website.
Once linked, you can create custom URLs for each of your PPC campaigns using Google’s URL Builder tool.
These custom URLs contain specific campaign parameters that Google Analytics uses to track the KPI metrics associated with the performance of your campaigns. You can then create custom reports in Google Analytics to analyze data such as click-through rates, bounce rates, conversion rates, and other key performance indicators (KPIs) for your PPC campaigns.
Digital Logic’s Approach to PPC Ad Strategy
At Digital Logic, we understand the importance of incorporating targeted keywords into PPC ad copy to ensure that your ads reach the right audience. One effective way to do this is to identify the keywords that your target audience is likely to use when searching for your product or service, and then include those keywords in your ad copy. It’s also essential to ensure that your ad copy is relevant and engaging to your audience, as this will increase the likelihood of them clicking on your ad. By combining the right keywords with compelling ad copy, you can create effective PPC ads that drive traffic to your website and ultimately increase conversions.
Negative keywords are keywords that you specify to your ad platform that you do not want your ads to appear for. By adding negative keywords to your campaign, you can prevent your ads from showing up for irrelevant or unqualified search queries.
This means that you can avoid wasting your advertising budget on clicks from users who are not interested in your product or service.
Negative keywords help to improve the quality of your traffic by ensuring that your ads are only shown to users who are most likely to be interested in what you have to offer.
At Digital Logic, we understand the importance of negative keywords in PPC campaigns, and we can help you identify and implement the right negative keywords to optimize your ad spend and drive more targeted traffic to your website.
Creating custom audiences is a critical component of any successful PPC ad strategy. Custom audiences allow you to target specific groups of users based on their behavior, interests, demographics, and other characteristics.
By leveraging the data you have about your target audience, you can create highly targeted ad campaigns that are more likely to resonate with your audience and drive conversions.
Match types determine how closely a user’s search query needs to match your chosen keywords for your ads to appear. There are three primary match types in PPC marketing: broad match, phrase match, and exact match.
Broad match will show your ad for any search query that includes your chosen keyword, even if the query is only loosely related to your product or service.
Phrase match requires that the search query includes your chosen keyword phrase in the exact order that you specified.
Exact match, as the name suggests, requires the search query to match your chosen keyword or phrase exactly. Each match type has its advantages and disadvantages, and it’s essential to choose the right match type for your business and advertising goals.
Bid adjustments allow you to increase or decrease your bid for specific ad groups or keywords based on various factors such as device type, geographic location, time of day, and more. By making bid adjustments, you can ensure that your ad spend is being allocated effectively and efficiently.
For example, you may want to increase your bid for users who are searching on mobile devices or for users located in a particular geographic region where your business is more popular. By doing so, you can increase the chances of your ad being displayed to the right audience and, ultimately, increase the likelihood of them clicking on your ad and converting.
Custom ad scheduling is a powerful feature in PPC marketing that allows you to display your ads at specific times of the day or week. With custom ad scheduling, you can ensure that your ads are being displayed when your target audience is most likely to be searching for your product or service.
For example, if your business is open only during specific hours, you can schedule your ads to run only during those hours to maximize your ad spend.
Custom ad scheduling can also help you avoid wasting your advertising budget on clicks and impressions during times when your audience is less likely to be engaging with your ads.
By leveraging custom ad scheduling, you can ensure that your ads are being displayed to the right audience at the right time, leading to increased engagement, more conversions, and, ultimately, greater ROI.
Sitelink extensions are an essential feature in PPC marketing that allows you to include additional links to your website within your ad. Sitelink extensions can help to enhance your ad’s visibility and give users more options to engage with your business.
For instance, you may include sitelinks to different pages on your website, such as your product page, contact page, or about page. By doing so, you can increase the likelihood of users clicking on your ad and ultimately converting.
Sitelink extensions can also help to improve the user experience by making it easier for users to find the information they’re looking for quickly.
Landing pages are the first impression that users have of your website, and by optimizing them for search engines, you can ensure that your ads are reaching the right audience and driving conversions.
To optimize your landing pages, you should ensure that they are relevant to the ad that users clicked on and include targeted keywords that align with your ad copy. Additionally, you should ensure that your landing pages have a clear call to action and are easy to navigate.
Split testing, also known as A/B testing, is a powerful technique in PPC marketing that involves testing multiple versions of an ad to determine which version performs better. Split testing allows you to make data-driven decisions about your ad campaigns and optimize your ad spend to achieve better results.
By split-testing different elements of your ad, such as ad copy, headlines, images, and call-to-actions, you can gain insights into what resonates with your target audience and adjust your ad strategy accordingly. Split testing can also help you identify and eliminate poorly performing ads, which can help to reduce wasted ad spend and improve your ROI.
Conversion tracking allows you to measure the effectiveness of your ad campaigns and determine which ads are driving the most conversions.
By tracking conversions, you can gain insights into what is working and what is not and adjust your ad strategy accordingly to achieve better results.
Additionally, conversion tracking can help you determine your return on investment (ROI) for your ad spend, which is essential for making informed decisions about your advertising budget.
What is PPC Management?
PPC management refers to the ongoing process of managing and optimizing a PPC advertising campaign to achieve specific marketing objectives, such as generating leads or sales, increasing website traffic, or promoting a brand or product.
Effective PPC management is essential for the success of a PPC advertising campaign, as it can help to maximize the return on investment (ROI) of ad spend and achieve specific marketing objectives.
Many businesses choose to outsource PPC management to a digital marketing agency or Google service ads manager to ensure that their campaigns are managed effectively and efficiently.
PPC Metrics to Track
PPC advertising campaigns can be tracked using a variety of metrics to measure their performance and effectiveness.
Here are some key PPC metrics to track:
The percentage of users who click on an ad after seeing it. A high CTR indicates that the ad is relevant and compelling to the target audience.
The percentage of users who complete a desired action, such as making a purchase or filling out a form, after clicking on an ad. A high conversion rate indicates that the ad and landing page are effectively persuading users to take action.
A low CPC indicates that the ad is performing well and generating clicks at a cost-effective rate.
Learn how to get CPM.
The amount of money an advertiser pays for each conversion, such as a sale or lead. A low CPC indicates that the campaign is generating conversions at a cost-effective rate.
A high Quality Score can lead to a higher ad position on the search results page and a lower cost per click.
Learn more: What is a Google Quality Score
The amount of revenue generated by the campaign compared to the amount spent on advertising. A high ROI indicates that the campaign is generating a positive return on investment.
Work With a Top-Rated PPC Advertising Agency
Running successful PPC campaigns can be challenging, but with the help of a top-rated PPC advertising agency like Digital Logic, it doesn’t have to be. Digital Logic is a digital marketing company that specializes in helping businesses maximize their ROI with PPC advertising.
We understand that PPC advertising can be a complex and time-consuming process, and that’s why we offer a range of services to help you achieve your business goals. Our team of PPC experts can help you develop a custom PPC strategy that is tailored to your business needs, including keyword research, ad copywriting, landing page optimization, and conversion tracking. Additionally, we can help you leverage advanced PPC techniques, such as custom audience targeting, ad scheduling, bid adjustments, and split testing, to further optimize your campaigns and achieve better results.
With Digital Logic, you can rest assured that your PPC advertising is in good hands and that we are committed to helping you achieve the highest possible ROI for your ad spend. Contact us today to learn more about how we can help you maximize your ROI with PPC advertising.