How Does Pay-Per-Click Marketing Work? (A Beginners Guide For Newbies)

Think again if you believe you know everything there is to know about pay-per-click (PPC) based solely on its name. A successful PPC campaign entails far more than you may realize.

What Exactly Is PPC?

PPC is true to its name. It’s a method of online advertising in which you only pay when people click on your ad.

It’s frequently regarded as the “go-to” method for online advertisers who don’t want to pay just to have their ad displayed. They want to be paid only when people take action as a result of their advertisement.

Doesn’t that seem like a much better way to invest in marketing?

The Most Common Types of PPC

PPC ads can be run through a variety of ad networks. Some are more well-known than others.

Without a doubt, Google AdWords is the most well-known of the bunch. This network enables you to place advertisements in search results and on private websites.

Google, however, is not the only search engine in town. Bing has its own PPC platform that allows you to run ads across a number of Microsoft search properties and partners.

Facebook also has a pay-per-click (PPC) advertising model. Because Facebook advertising is relatively inexpensive, it is popular among marketers.

You can also run PPC display ads, which are a great alternative to the more boring, text-based ads that many websites use.

Finally, you can use PPC to run a retargeting campaign. That’s an excellent way to entice customers who have already visited your website.

What Is the Price of PPC?

What is the cost of running a PPC campaign? It is conditional.

To begin, PPC campaigns are built around keywords. Some keywords are more expensive than others.

Why? Because they are more in demand. If you want to run an ad with the keyword “car insurance,” you can bet it will cost much more per click than an ad with the keyword “St. Ignatius.”

This is due to the fact that more advertisers are bidding for “car insurance” than “St. Ignatius.”

You are also in charge of determining the cost of a PPC campaign. Most ad networks allow you to set a budget so that your costs don’t spiral out of control.

For example, you could run a campaign with a daily budget of $100. Once you’ve spent that much, the ad network will turn off your ads for the rest of the day, preventing you from spending any more money.

The PPC Elements

PPC, as we’ve seen, is more complicated than many marketers realize. A PPC campaign, in fact, consists of several components:

The Campaign as a Whole – The campaign itself is at the top of the hierarchy. You could, for example, run an advertising campaign with a holiday theme.

The Ad Group – An ad group is a collection of ads associated with a campaign. For example, you could have one ad group dedicated to holiday party gag gifts. You might have another Christmas card-related group.

Keywords – Make sure your keywords are relevant to your ad group. In determining ad placement, Google will consider keyword relevance (more on this in a bit).

Ad Text – Include some enticing text in your ad to entice people to click on it. When writing ad copy, it’s usually best to enlist the help of a professional copywriter.

The landing page is where people “land” after clicking on your ad. It should be relevant to your keywords as well.

What Is the Process of the Auction?
In an open auction, ad networks typically allow people to bid on keywords. But don’t think that just because you’ve visited eBay a few times means you know everything there is to know about bidding on keywords.

Keyword bidding is a little more complicated.

This is due to the fact that your ad placement is determined in part by your bid. The quality of the ad itself is another consideration in ad placement.

Google determines the quality of your ad by assessing its relevance to your keywords, the relevance of your landing page, and the ad’s click-through rate.

Simply multiply your bid by your quality score to determine your overall ad rank. For example, if your quality score is ten and your bid is one dollar, your rank is ten (10 x 1).

If your ad rank is higher than the ad rank of other advertisers bidding on the same keyword, your ad will appear first.

Keep in mind, however, that the amount you pay is not the same as your bid. It is going to be less.

That’s because Google divides your quality score by the ad rank of the next highest bidder and then adds a penny to your payment. So, if your quality score is 10 and the next highest bidder’s ad rank is 9, you pay 91 cents (9/10 +.01).

See? It’s difficult.

Hire a Professional

If you only remember one thing from this article, make it this: when it comes to PPC, you should not go it alone.

When you go into online advertising without professional guidance, there are far too many ways to lose money.

Find a company (or hire a rock star employee) to assist you in locating the best ad network for your brand and collaborating on ad copy, bidding strategies, and testing. Also, before you begin, conduct a thorough competitive analysis.

You’ve put in a lot of effort to build your company. When you want to advertise online, work with a reputable PPC company to keep it profitable.

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