What is PPC Pay-Per-Click Concept?

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What is Pay-Per-Click (PPC)?


Pay per click- PPC, a model of internet marketing where advertisers like you pay a fee, every time one of your ads is clicked. It’s basically opposite to what happens in organic ranking of your content. Here, it’s a way of buying visits to your site, rather than attempting to earn the visits without running ads in front of your targeted audience to allure them. The most famous platforms for ads to run are Google and Bing.

We all have seen many ad pop-ups every time we are in front of the screen. When we open that ad, the advertiser will have to pay for that click. It’s the cost of buying a visitor purposely.

Apparently, search engine advertising has become popular in the form of pay per click.

Here, the thing to pay attention to is that an advertiser is allowed to bid for an ad placement in a search engine’s sponsored links when someone searches a specific keyword related to the ad, pointing towards a product/service, which is offering to sort an issue for the audience.


What is the concept of Pay Per Click PPC ads?

Search ads


The most common type of ads amongst the other types is the paid search ads. A paid search ad appears when your customer is searching for things to buy on any SERP like Google. These searches are commercial searches, as the customer is looking for something, they are willing to buy online. We all do these kinds of searches to buy food, clothes, gifts, or to find an expert like an electrician in the area we live in. Pay per click ads contain certain keywords that match with what your target audience is trying to search for and apparently buy for. So, these searches trigger those specific ads related to that product/service.

Here, you as the advertiser won’t be charged unless the customer has “clicked” on your advertisement, that’s why the concept is named as ‘pay per click’.


Types of Pay Per Click-PPC Ads

You can select the goals from Google ad campaign to run ads for a specific goal like sales, leads, website traffic, product and brand consideration, brand awareness and reach, app promotion, local store visits and promotion, and create a campaign without a goal’s guidance.

To reach these specific goals an advertiser can run different types of ads as mentioned below to reach the target audience. Search ads are already discussed above.


1. Display ads


These are the images or text ads, banner ads that emerge on various websites, and they appear to attract the desired target audience. Here, you can choose the exact audience you’re trying to target. Display ads generate brand awareness as they appear in a visual format but their click through rate is lower. These ads are linked to your website to help a visitor reach your page quickly.

In google ad campaign after specifying your main campaign, there is an option to choose the sub campaign type which can not be changed later on.

a.Smart display campaign- to improve performance with simplified ad targeting and management.

b.Standard display campaign- to pick your setting and targeting, and have some automation options to drive more conversions. This helps you find high-performance

c.Gmail campaign- to show interactive ads to people as they browse their emails, these ads appear at the top of their inboxes. There is no bigger difference between a normal mail and an ad mail, except that there is a tag as “ad” to the ad mail.

After choosing any one of these, you can choose the locations, languages, bidding on conversions/conversion value, and budget. You can also set a target cost-per-action (CPA) amount for clicks or viewable impressions or select a bid strategy directly (not recommended).


2. Smart Ads


Smart ads are the automated ads to reach your business goals across the web, on Google, Google ads with minimal hands-on ads management. For generating leads you have two options: ask your customers to call your business or visit your storefront. Do not forget to add your website to google ads for further better reach.


3. Google Shopping ads


This type of advertising is very helpful for those advertisers who already have an ecommerce website. You can make use of Google shopping campaigns to reach potential audiences. As this result appears in a carousel above the Google search results, it helps your potential customers to see the products and prices before clicking onto your website to check the product on the main page.


4. Video Ads


These ads help you reach a better audience and engage viewers to consider your products or brand with a great video on YouTube and across the web. This also includes a subtype campaign;

a.Influence consideration- influence consideration of your products or brand with skippable in-stream ads or video discovery ads.

b.Ad sequence- tell your story by showing ads in a specific order to viewers with skippable in-stream ads, non skippable instream ads, bumper ads or a mix of these. We come across such ads very frequently on YouTube and other platforms.

c.Shopping- promote your products or services and reach out to people to get them to shop on your website with skippable instream ads. 


5. Discovery ads


Discovery ads appear on multiple Google platforms like YouTube, Gmail, Android Google app.  These ads are usually rich, mobile first and use the past data of customers’ like the sites they visit, app download, videos watch, and search history of maps. Advertisers must specifically create a Discovery campaign and upload the copy of ad and creative assets. This gets optimized with the help of machine learning.


6. App promotion 


Drive app Promotion ads with an automated campaign that shows these ads on the Google Search Network, Google Play, Display Network, within other apps, and on YouTube.

You can choose from the subtype that you want your target audience to take action around;

a.App installs- Get new people to install your app when they come across the ad.

b.App engagement- Get existing users of your app to take actions in your app. We all sure have seen promotional notifications for an app that we have not used in a while.

c.App pre-registration for android only- Get new users to pre-register your app before it even launches.

There is an option for mobile app platforms: Android or iOS.


7. Local ads


Local ads are mostly used for lead generation and attract the local customers to visit your store front. When people search for local businesses like ‘plumber near me’ on Google search or Google map, they may see local search ads that feature your business location if your business or product is relevant and matches the searched keywords.


Other Types of Ads;

1. Price comparison website ads


There are websites that compare various product prices and special offers and display them on their website. When users come across such ads, they have two options; directly visiting the website of the merchant to buy the product or buying from the website that offers the comparison.

The advantage is, price comparison websites can give access to qualified leads- people who are interested in the product or service which is similar to what you are offering.

The only disadvantage is you will be up against tough competitors.


2. Social media ads


The screen time has increased over the time, people are spending more time on social media platforms. You can put up your product or service ads on some of the main social platforms like Facebook, Twitter, LinkedIn, Instagram, YouTube, Pinterest as they have a high number of users. This also helps in brand awareness in a very subtle way.

These platforms can help you gain higher click-through rates at the website with proper ads of products or services offered.

Companies love using social media as it helps generate precisely targeted leads. If you want to run an ad on Facebook, you can target people based on their location, education, behaviors, interests, demographics and filter out your targeted audience.


3. Remarketing ads


We search for a product or service on any SERP because we are genuinely interested in that thing. But have you observed that whenever you are online and probably surfing through the internet, you come across the ad of that product or service you had checked about? This is a remarketing strategy. Many times, we visit that website and learn about the product or service, but we don’t buy it. Remarketed ads give a second chance to gain on the lost leads to entice them, make them rethink about the business and choose your product. This also helps in the conversion rate successfully.


Pay Per Click-PPC model

There are briefly two models; Bid based PPC model and Flat-rate PPC model. Let us check both of them in brief.


1. Bid Based PPC model


Every advertiser like you will bid with a maximum amount of money which they can pay for obtaining an ad window. A publisher is responsible for the auctioning with the help of an automated tool. When a visitor triggers the ad window, an auction takes place, that is taken into consideration to understand factors like;

         -Eligibility of an ad account

         -Order of eligible ads on the SERP

         -Cost of click for the advertisers whose ads are visible

There are two influencers responsible for the auction, one is Quality Score and second is maximum cost-per-click (CPC).

Quality Score consists of expected click-through-rate (CTR) for an ad, experience of the landing page to which the ad would send traffic to, relevance of the ad for the issue searched.

CPC is what an advertiser is willing to pay via an ad account for an ad group or keyword.

The winner of an auction is determined by the ad rank;

Ad rank = Quality score x Cost per click(max value)


2. Flat-rate PPC model


An advertiser would pay a fixed cost for each click to a publisher for advertising its product or service. A publisher would lower the fixed cost if an advertiser would offer a high-value contract or a long-term contract. There is a list of different PPC rate costs for different areas of a website.

The PPC model and its set up remains the same across all the platforms.

1.Create an ad account on a specific platform

2.Create ads by targeting desired audience, use correct keywords

3.Set the maximum cost-per-click you are willing to pay

4.Auctioned Ads

5.Determine order of the ads with the help of auction

6.Pay for each click on your ad by a visitor.


How PPC works for your business/why use PPC

PPC ratio is 1:2, that means your business on an average can make $2 on every $1 spent for PPC set up. 

As it helps in lead generation and attracting quality traffic, there is a chance of 50% conversion rate with PPC.

 Check out some of the reasons, why Pay Per Click-PPC could work for your business;


1. Easy to measure and track


Platforms like Google ads and Bing ads can show you the conversion rates, lead values, ROI of the specific keywords and ad groups and the ROI of an entire account. You can add minute details, which could be traced and worked upon with the help of these famous platforms to improve the efficiency of your ad account.


2. Easy to define your target audience


Pay Per Click-PPC allows you to define your desired target audience with the help of the data provided by you. This can help you understand your customer base very well and their buying behavior. You can target only a specific part without wasting money on ads to attract the wrong audience. You can adjust bids based on various factors. Factors include location, time of the day, income, devices used, interest of your target customer.


3. Increased frequency of clicks


Within a few hours of your ad set up via ad account and approval granted by the platform, you can see your ad going live. If it is eligible to appear in the auction with a high bid, you will observe an increased frequency of clicks on those ads given the volume of the customer base. The returns are high and quick in the Pay per Click- PPC setup compared to SEO.


4. Multiple ad formats


You will find a wide range of different formats for ads and they are designed to drive success for specific businesses. You can use shopping ads for an ecommerce website store. With this your products will appear in the prime position of SERPs. With the help of remarketing strategy, you can encourage the target audience to revisit your website. You can encourage them to buy an abandoned or forgotten product, making a great conversion rate!


5. Freedom to run the ads


Pay Per Click-PPC gives you the freedom to run your ads whenever you want, and you can also decide on the amount of money to spend per click. You can pause them if you do not need to run ads for a specific period. It could be for days or weeks too, your call! But do not use the start and stop technique very often. It may degrade the customer base and you may not be able to reach a wider audience.

Learn how to set up a PPC ad Campaign here.

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By Media Lab
7 June 2021

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