What is Pay Per Click?

     Pay Per Click    

What is PPC?

PPC stands for pay-per-click, a model of internet marketing in which advertisers pay a fee each time one of their ads is clicked. Essentially, it’s a way of buying visits to your site, rather than attempting to “earn” those visits organically.

The basic formula is-

Pay per click ($) = Advertising cost ($) / Ads clicked (#)

Essentially, PPC is a way of buying visits to your site, rather than attempting to earn visits organically.

Search Engine Advertising

Search Engine Advertising is one of the most popular forms of PPC. It allows advertisers to bid for an ad placement in a search engine’s sponsored links when someone searches using a keyword that is related to their business offering.

Advertising

For example, if you bid on the keyword “marketing classes”, several ads might show up in the very top spot on the Google results page. Everytime a specific ad is clicked. Sending a visitor to their website, they have to pay the search engine  a small fee. When PPC is working correctly, the fee is trivial, because the visit is worth more than what is paid for it.

Advantage of PPC Marketing

The Unique advantage of PPC marketing is that  the ad networks used to manage PPC campaigns don’t just reward the highest bidders for that ad space, rather they reward the highest-quality ads (meaning the ads that are most popular with the users).

Ads are rewarded for good performance.

The better the ad, the greater the click-though rates and lower the costs.

Many marketers choose to use Google Adwords to manage their PPC campaigns. The AdWords platform enables businesses to create ads that appear on Google’s search engine and other Google properties.

Factors behind successful PPC advertising how often your PPC ads appear depends on which keywords and match types you select. While a number of factors determine how successful your PPC advertising campaign will be, you can achieve a lot by focusing on.

Keyword Relevance-

Crafting relevant PPC key lists, tight keyword groups and proper text.

Landing Page Quality-

Creating optimized landing pages with persuasive, relevant content and a clear call-to-action , tailored to specific search queries.

Quality Score-

Quality score is Google’s rating og the quality and relevance of your keywords, landing pages, and PPC campaigns. Advertisers with better quality scores get more ad clicks at lower costs.

Your entire PPC campaign is built around  keywords, and the most successful Adwords advertisers continuously grow and refine their PPC keyword list.

In conclusion, PPC advertising offers a unique opportunity of –

Grow your customer base-

Connect with searches actively looking for products and services like yours, and responding to the need by providing them with an offer relevant to their search query.

Generate leads at low costs-

As Pay Per Click marketing allows you to reach leads and prospects when they’re researching and looking to buy, it’s a highly effective was to bring interests visitors to your site. In addition, you can enjoy an algorithmatically generated discount from the search engines in exchange for making their users happy.

The payment method pay-per-click is mainly used in online marketing. Here, each click on an advertising medium such as a banner or a text ad is billed. The advertising company therefore does not pay for the ad itself to be shown (ad impression), but only when a click has actually been made. There are different types of pay-per-click advertising media: On the one hand, these can be placed in the form of advertisements on search results pages in search engines such as Google and Yahoo (search engine marketing). On the other hand, a text link or a display banner can be positioned on a blog or portal (affiliate marketing).

How does pay-per-click marketing work?

In search engine marketing

In affiliate marketing.

In search engine marketing, the pay-per-click accounting model works as follows:

The search engine provides advertising spaces that are also marked as ads. These advertising spaces can be booked by advertising companies. However, since only limited advertising space is available, the principle of the highest bidder applies. The more an advertiser wants to pay for a click, the more advantageous the advertising medium is placed in the search result display.

The user now enters something in the search input field and is presented with a result display matching the keyword they are looking for. This includes both organic search results and commercial ads (e.g. Google Adwords ).

The user is thus shown target-group-specific advertisements, so-called ad impressions. However, the advertising company does not have to pay anything for the mere advertising. Costs are only payable if the click is successful (pay-PPC -click). In this way, you can reach a user if he shows interest in the offer. Whether the customer ultimately buys or not is irrelevant for CPC. The only thing that counts is that he has reached the advertiser's website via the advertising medium.

What are PPC campaigns?

PPC campaigns are campaigns that are based on the principle of pay per click. SEA, i.e. search engine advertising, is one of the areas in which the principle of pay per click is used most frequently. Google Adwords or Yahoo Search Marketing also work with click prices. Facebook ads, displays and banners or text links in affiliate marketing are also often paid for per click.

Because Google Adwords is certainly one of the best known tools, we would like to use this example to explain how to set up a PPC campaign. Once you understand the principle, you can apply it to many other tools.

PPC and CPC Instructions: How it works

You set up an account with the provider where you want to place ads. In the case of Google Adwords , you can log in with your Google account and then, if necessary, create different accounts for the companies you look after. You can then create campaigns under these accounts. You will be asked to provide your credit card as a form of payment and to select a price for the campaign.

You then define keywords for the PPC campaign. These ensure that the inorganic search results - i.e. your ads - are always displayed in the search results when a user searches for the corresponding keywords.

Keep in mind that in most cases, multiple companies want to promote the same keywords. If this is the case, there will be an auction between the bidders to get the advertising placement: So if you offer a euro as CPC but another company only 90 cents, you will get the advertising space and your competition will be empty.

As soon as users search for the relevant keyword, your Adwords or your ad will be displayed. The great advantage of PPC is that you only pay if your ad is successful and a user actually clicks on it.

The account is set up in a few minutes and you can start creating your ads straight away. Now you can experiment with which wording and keywords achieve the highest CTR.

To the measurable goal: the range

Now you know what PPC stands for and what a PPC campaign can look like. But what for the whole procedure?

The formula of the Pay per Click allows you to increase the reach of the company's presence on the internet - and it is completely controllable because you are responsible for full cost control. This allows you to determine from the start what budget you want to spend on your campaign.

So there are no unpleasant surprises. And you minimize wastage to users who are playing the ad, but who don't click on it (or don't even notice it). You only pay when your ads really appeal to users and they become aware of your website.

For your everyday life as a marketer, this means that reach is not just a vague term, but becomes a measurable and operationalizable goal.

5 good reasons for pay-per-click marketing:

1. You only pay when a user has really noticed and consciously clicked on your advertising material.
2. You reach a target group that is very affine for your product or service.
3. You significantly increase the reach of your products.
4. You have only little wastage.
5. You have full cost control because you largely determine the click price yourself.

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