Pay per Click Advertising

What is Pay per Click Advertising?

Technology is advancing rapidly, organizations and brands are gradually shifting from conventional marketing to digital marketing. That is, they employ digital tools to advertise their brand and reach their target audience.

Digital marketing involves using the internet, smart devices, social media, search engines, etc., to reach potential customers. They are targeted and data-driven advertising strategies brands use to reach customers in stages of purchases.

With digital marketing, your brand can leverage the four types of digital advertising: search, display, social, and influencer. In addition, digital markers use different advertising models to communicate and pass their message.

Some of the prominent digital advertising strategies include Pay per call (PPC), Cost per Action (CPA), Value per Action (VPA), Cost per Click (CPC) Pay per Click (PPC), etc. However, this article will be reviewing the Pay per Click Advertising model.

What is Pay per Click?

As the name suggests, pay per click (PPC) is a paid advertising model that requires advertisers to pay a fee whenever a potential client clicks on their ad. This online advertising model employs a bidding system that requires any advertiser using this model to bid online.  In addition, advertisers need to create ads, then bid on specific search phrases using term keywords at the online auction.

Once an advertiser’s bid is successful, the ads they created will be displayed on the search engine page. However, unlike other advertising models, pay per click only charges advertisers when online users click on their ads. In addition, this model allows advertisers to display their ads on the sponsored result section on the search engine result page.

Currently, Google, Bing, Facebook and Yahoo Search Marketing have some of the most prominent PPC advertising programs. Moreover, it is safe to say that it is a targeted form of buying every time a user clicks on your ad. That is, the user’s visit could end up in conversions. It could either be a sign-up or an actual sale.

Types of Pay per Click Ads

There are different types of PPC ads. Some of them include:

  • Search ads
  • Local search ads
  • Display platform
  • Web pages
  • Mobile apps

Conversely, these ads types usually look similar, however, they have their distinct differences. For instance, the ads on some social media channels like Instagram, Facebook and Twitter have the same format as organic posts. However, the difference is they are tagged with the term “Sponsored or Promoted”.

How PPC Works

In Pay per click advertising model, all ads are subject to a bidding system. This bidding system is termed Ad Auction. Ad Auction is an automated process carried out by major search engines to evaluate the validity and relevance of the ads that appear on their search engine result page.

In addition, advertisers must bid on keywords that are relevant to the business there are about to advertise. These relevant keywords are terms the advertisers want to display or trigger their ads.

For instance, if you are into building, you might want to bid on the keyword, “best building materials.” Alternatively, you can use keyword search tools to find relevant keywords with the right word count and the average cost per click.

Once you get relevant keywords for your business, proceed to create an ad and set it up in the search engine platform. However, ensure to include the keywords you want the ads to trigger.

Ads Display Ranking

Another item to consider is the section you want the ad to appear on the search result page. Also, you need to set your bids for how high up you want your ad to appear in the section.

However, aside from the price of the bid, your ads will go through an evaluation. That is, whatever advertising platform you are using will evaluate your ads using factors such as quality score and ads extensions to review which ad is appropriate for the highest position.

For instance, an advertising platform can evaluate the quality of your ad based on the relevance of the ad, your landing page experience and click-through rate. The result from this evaluation will give you your quality score.

Nonetheless, when a potential client submits a search query, an algorithmic calculation is carried out by the search engine based on the Ad Auction. Hence, it is the result that will determine the ads that the search engine will display, their order and from which advertisers.

Perks of Using Pay per Click Advertising Model

There are tons of benefits that come with using pay per click advertising, some of them include:

Swift set up

Unlike other advertising models, PPC is quite easy to set up. It is time-efficient: you don’t need to spend time setting up campaigns. Creating ads and finding potential customers.

Cost-efficient

PPC is budget-friendly. You can simply set up your ad budget and choose how much you want to spend per ad. For instance, if your first ad yielded positive results, you can scale up your budget.

Flexible

You can place your ads on all platforms which are accessible both on mobile and desktop devices.

Better positioning

With PPC, your ads get better positioning as you get to use your choice’s target keywords. Hence, whether you choose to target keywords via search ads or on a specific demographic on a display network, your ads will get to your target audience.

Analytics

With PPC, you can measure and trace your ads. With analytics on your ads, you will see the performance of your ads including impressions, clicks, and conversions. In addition, you can review the traffic the ads is getting and how the results match your budget.

Other perks that come with using PPC include:

  • Increases brand awareness
  • Improves product sales
  • Generates qualified leads
  • Drives repeat sales

Conclusion

It is important to understand the type of marketing model your brand needs. However, if you decide to go with PPC, then it is essential you research carefully on a suitable keyword that will position your ad strategically. In addition, using PPC will provide you with an insight into the behaviour and search pattern of the customers.

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