Pay Per Click Advertising – Everything You Need To Know
Pay Per Click is an internet advertising model where advertisers pay publishers every time one of their ads is clicked. Basically, it is a way businesses ‘ buy’ traffic into their website(s) instead of ‘earning’ them organically. Search engine marketing is, so far, the most popular form of PPC. PPC is way more effective than CPM (cost per mile) as companies only pay for the number of times their ads have been clicked rather than when it has been seen or viewed. It helps you accurately read data, adjust marketing campaigns and assess the effectiveness of such changes. So, if you’ve heard little to no information about pay-per-click advertising and would like to learn how it works or its pros and cons, this guide contains everything you need to know about this marketing model. Let’s first review the meaning of PPC and then dive deeper; shall we? What is Pay Per Click (PPC) Advertising? Also known as cost per click (CPC), Pay-per-click (PPC) is a digital or online marketing model where marketers or businesses place ads on publishers’ platforms like blogs and YouTube. And then pay every time a visitor clicks their sponsored (ad) link. This model is popular on search engines like Google and Bing and social media platforms like Facebook and Twitter. One unique thing about pay-per-click advertising is that advertisers only incur costs for the number of clicks their ads get, making it more effective than CPM. So, instead of marketing your website organically, like through SEO and content marketing, you can ‘buy’ website visits. With search engine advertising, firms bid for keywords related to their offerings for their sponsored links to appear at the top or bottom of the SERPs when users search for the keywords. For instance, when you search for “digital marketing course” on Google, PPC ads from Google, Facebook, and Coursera appear. These companies only pay if one clicks the ads. How the PPC Model Works Keywords form the basis of the PPC marketing model. As seen above, online ads (or sponsored links) appear when one searches for keywords related to the marketer’s business offers. Searching for digital or email marketing and getting PPC ads about pet foods is highly unlikely. Therefore, keyword research is mandatory for companies that rely on pay-per-click advertising to analyze the terms their potential customers search for and bid for those keywords. This way, you’ll receive many clicks from the right audience and, eventually, boost sales. This marketing model is beneficial for marketers and publishers. Publishers that target high CPC keywords in their content have higher chances of getting high-paying ads, increasing their revenue when users click such ads. Publishers like me can offer content for free and make money online through PPC monetization models, mainly from Google Adsense and Media.net. This model is equally effective for marketers as users who click their ads and visit their website are more likely to buy or subscribe to their business offers than those who only view their ads and don’t click. When the PPC campaigns are well-targeted, the cost per click paid by the advertiser will be less than the value of each visit (click), saving on advertising costs. Pay-Per-Click Advertising Models Marketers usually determine PPC advertising rates using flat-rate or bid-based models. 1. Flat-rate Model Advertisers using the flat rate PPC model incur a fixed rate per every click. Publishers offer different rates for different areas on their websites. For instance, placing an ad on the header may be way more costly but effective than placing the same ad on a site’s sidebar or footer. However, most publishers are open to negotiation. They can lower the PPC rate if the advertiser offers a longer-term or high-value contract. But such terms are highly unlikely when using ad networks like Google Ads or Media.net (for Bing and Yahoo search engines). 2. Bid-based Model In a bid-based PPC, advertises quote the maximum offer they would be willing to pay for an advertising spot in an auction. The publisher then launches auctions using automation. Every time a user triggers the ad spot, an auction and a winning bid ad are displayed. However, the bid ‘winner’ is determined by the rank, not the bid’s value. In addition to considering the amount of money offered, the rank depends on the quality of the advertiser’s content. This way, relevant ads are shown to visitors, increasing their likelihood of clicking. Types of Pay Per Click Advertising You can use different pay or cost-per-click internet marketing options to drive traffic and sales to your website. The common ones include: 1. Search Engine Marketing Search engine advertising is the most common type of PPC marketing. It is provided by popular search engines like Google (through Google Adwords) and Bing (through Bing Ads). These providers show your ads on the SERPs when users search for the keywords you have bided for. All you need is to write an excellent ad copy, select the most appropriate keywords that will connect you to the right audience. Then connect the ad to the landing page of your website. What is Google Ads? Google Ads is the most popular PPC advertising system globally. This ad platform allows advertisers to create ads to appear on Google search engine results and its other properties. Here’re some ads that appear when you search for digital marketing jobs on Google. Many businesses have bided for the keyword, but only two ads appeared on the top of SERP. And these companies will only pay if I click their links. After searching for the term the second time, the ads disappeared from the top of the SERPs and appeared at the bottom. What happens is that every time a search is initiated, Google automatically digs into the pool of advertisers. And then chooses the most appropriate set of ‘winners,’ and displays their ads ad different positions on the SERPs. The winners are selected based on many factors, including the user’s location, quality and relevance of the advertiser’s keyword, and
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