PPC advertising (pay-per-click) is a model of internet marketing in which advertisers pay a fee each time one of their ads is clicked. Essentially, it is a way of buying traffic to your app store or website page.
Search engine advertising, such as with Google Ads, is one of the most popular forms of PPC. PPC allows advertisers to bid for ad placement in a search engine’s sponsored links when someone searches on a keyword that is related to their business offering. For example, if we bid on the keyword “mobile games,” our ad might show up in the very top spot on the Google results page.
Every time an ad is clicked, sending a visitor to a website, the advertiser must pay the search engine a small fee. When PPC is working correctly, the fee is trivial, because the visit is worth more than what you pay for it, otherwise known as ‘Return on Advertising Spend’ (ROAS).
A lot goes into building a winning PPC campaign: from researching and selecting the right keywords, to organizing those keywords into well-organized campaigns and ad groups, to setting up PPC landing pages that are optimized for conversions. Platforms reward advertisers who can create relevant, intelligently targeted pay-per-click campaigns by charging them less for ad clicks. If your ads and landing pages are useful and satisfying to users, Google or Facebook charges you less per click, leading to higher profits for your business. So, if you want to start using PPC, it is important to learn how to do it right.
How PPC Advertising Works
In PPC advertising, ads are subject to a bidding system known as the Ad Auction. It is an automated process followed by major search engines to determine the validity and relevance of the ads that appear on their search engine results page.
At the auction, advertisers bid on keywords that are relevant to their business. These are search terms they want to display their ads. For example, if you have an eCommerce app for meal delivery, you will want to bid on the keyword, “meal delivery service”.
Use keyword search tools to find relevant keywords with the right volume and the average cost per click. Once you have the relevant keywords, create an ad, and set it up in the search engine. Add the keywords that you want the ads to trigger for.
Ad Types and Creative
The different types of PPC ads include search ads, local search ads, display ads, and remarketing. These ads can show up on web pages, social media platforms, web pages, and mobile apps. They usually look like the content around them.
For your PPC advertising campaigns, you will need creative, lots of it. Whether you create static or video creative, you will want to continually develop, test, and optimize your campaign creatives. Learn how to use creative testing best practices to drive performance. Social media audiences require a cadence of fresh content and creative, otherwise, they get ‘creative fatigue’ and will begin to ignore your campaigns. If you cannot test creative ads quickly and affordably, your campaign’s financial performance is likely to suffer from a lot of non-converting spend.
But testing alone is not enough. You also must generate enough original creative concepts to fuel testing and uncover winners. Over the years, we have found that 19 out of 20 ads fail (5% success rate). You do not just need one new creative. You also need 20 new original ideas or more to sustain performance and scale! Check out our article on how to make creative that stands out.
Set the bids for how high up in the ad section of the search results their ad will show. Apart from the bid price, the advertising search engine also looks at factors such as quality score and ad extensions. This determines which ad is suited for the highest position. For example, the quality score sums up the quality of your ad based on ad relevance, landing page experience, and click-through-rate.
When a user submits the search query, there’s a complex algorithmic calculation done by the search engine which is based on the Ad Auction. The results of these calculations determine the ads that are displayed, their order, and by which advertiser.
Benefits to PPC Advertising
There are many compelling benefits of PPC advertising:
- PPC is measurable and trackable. You can see how your campaigns are performing. Including impressions, clicks, and conversions, the traffic you are receiving, and how the results correlate to your budget.
- It provides a better understanding of the behavior and search patterns of potential customers.
- It is easy to quickly set up campaigns, create ads, and find new customers and prospects.
- Budget flexibility. You can set up your ad budget and choose how much you want to spend. For example, if you see positive results, you can scale up quickly.
- A wealth of targeting options. Whether you want to target keywords through search ads. Or focus on a specific demographic on the display network.
- Your ads work on all platforms, including mobile and desktop devices.
To ensure the success of PPC campaigns, advertisers must find the perfect balance of cost and visibility. This will ensure maximum results from campaigns. To ensure that each advertising dollar is used effectively, create a unique campaign for your business. Also, consider your market position, industry, size, and area of operation. And constantly analyze and improve keywords and locations.