All you need to know about PPC

Posted: October 29, 2013

PPC  What does it actually mean?

Today in marketing many businesses believe that by simply launching a website, they will be able to compete in the e-commerce market. The sad truth however, is that thousands of websites go unnoticed, suffering from the anonymity and vastness of the internet. A prepared business can avoid this fate by ensuring they have a digital strategy to drive traffic to their website. A digital presence for any business is becoming increasingly significant. Online advertising is one of the highest drivers of revenue to a website and one of the easiest ways to measure ROI.

Customers (whether B2B or B2C) all want to be able to find what they are looking for online quickly and seamlessly. The best way for your brand to become top of mind is if it easily identified on a search results page, where a call to action is far greater when a suggested page becomes top of mind. This is where PPC advertising comes in…

What is PPC?

Pay per click or PPC as it is most commonly referred to, is advertising on search engines where the advertiser pays only for each click on the advert not just for impressions of the advert. It is really as simple as that.

Google Adwords is the Google equivalent of PPC advertising on the Google Search Engine. While Google may be one of the most popular search engines, it is not the only one. Yahoo! Search Marketing is a very popular engine and their PPC service is far less complicated than Google’s. However, the popularity of the site may not be as great.

Why should I use PPC?

The sheer volume of people that use search engines on a daily basis is reason enough for businesses/ marketers to use their PPC services’. PPC advertising allows users to choose keywords relating to their business offering or products and the price they are willing to bid for them against their competitors who may be after the same keywords. The higher the bid, the more often and higher your advert will appear.

This means that an advert will come up in response to the search terms entered by the consumer. PPC therefore plays a role in acquisition and retention. It allows the advertiser to reach people who are already in the buying circle or are expressing interest in what they have to offer.

How does PPC advertising work?

Once the advertiser has set a daily budget and selected the keywords for their advert they will need to create the actual text for the advert that will appear to potential clients/ customers.

PPC adverts have a very limited space, and very limited time, to get a message across, as well as plenty of competition for a reader’s attention. These four lines of copy need to work hard to ensure a positive ROI.

The basic structure for PPC ads is usually always the same:

Heading

Two lines of advert copy – which can be displayed on one line

The URL of your choosing

With a limited word count available, it can seem a daunting task to communicate information that entices the right traffic to click through and differentiate you from your competition. Testing variation of copy is the best way to determine what works best for your campaign.

A particular ad’s ranking is based upon its cost per click (CPC), a setting that the user determines, multiplied by its click through rate (CTR). The CTR is the percentage of how many times an ad was seen by a potential customer vs. how many times the customer actually clicked on the ad. Thus if 100 customers saw the ad, but only 45 of them clicked on it, the ad’s CTR would be 45%.

Just like all digital advertising PPC campaigns are highly measurable and easy to tweak and optimise to ensure that your brand or product gets the best exposure possible online relative to your budget.

Happy PPCing  🙂

PPC

 Example of Google Pay- per –click (PPC) Model