What is PPC Advertising?

Pay Per Click (PPC) advertising is a paid internet advertising tool. It is a method that places ads on search engine results pages, and when someone clicks on the ad and is directed to the website, the advertiser pays the publisher. The advertiser is usually the business or company in the ad, and the publisher is the search engine like Google or Bing.

Search engines allow businesses to buy listings in their search results, and the PPC ads appear on top or next to the regular organic listings. Every time a user clicks on one of the paid ads, the search engine is paid. Your placement in the results depends on how much you bid on your ad. Other businesses that outbid you will get placed higher in the search results.

The image below shows the paid and sponsored ads and the organic results below.


How It Works

Ads are sold at auction. A business will bid what they want to pay for a click on the ad. If you bid the highest amount, then you will have a greater chance of ranking number 1 in the paid ad results. If you bid enough and are placed in the results and someone clicks on your ad and goes to your website, then you are charged whatever that amount is. If you bid $.20 on an ad and have 20 people, click on the ad then you will pay the search engine $4.

Cons of PPC Advertising

PPC advertising can get very costly if you don’t set limits or monitor your campaign and you can get stuck in a bidding war with another company that is constantly trying to outbid you. Another potential problem is having a multitude of people click on your ad but not necessarily purchase anything on your website. This will cost you a lot in PPC advertising but won’t necessarily benefit your company. To avoid this issue, you need to create effective campaigns that target your desired audience – more on that in the following section.

Pros of PPC Advertising

If you are a new business or launching a new product, PPC advertising can provide somewhat fast results. If you create a well-written ad and people search for those terms, then your ad will appear immediately and attract clicks. If you use it in the right way, are careful about the words you select then PPC can be a useful advertising tool.

How to Make It Work for Your Business

Track conversions

Ensuring PPC advertising is beneficial to your company requires tracking and monitoring the campaign so you know how much money you are spending and what results you are getting in return. For PPC to pay off for your business and provide some real benefits you want conversions, not just clicks to your website. If someone clicks on your ad they are taken to your business website, this is considered just a click. But if they go to your website and perform an action that benefits your business, this is considered a conversion. A conversion isn’t necessarily a purchase; a customer can make a purchase, complete an inquiry form or register for something. If it is something of value to you, then your ad has served its purpose. Google Analytics has a free conversion tracking tool you can use to monitor your ad conversions.

Create effective ads

To reap the benefits of PPC advertising, you don’t want people just clicking on your ads and then not purchasing anything or taking an action on your website, as previously mentioned. How do you attract the right audience to click on your ad? This is where effective writing comes into play. If you write ads that are too generic, you could potentially have hundreds of people clicking on it, but then once they arrive at your website, they realize it isn’t relevant. To avoid this, you need to include specific keywords in your ad that people would use when searching a company or product you offer. This will ensure your ad only appears when someone is searching for something in line with your business. Take time to write good ads and consistently review and revise your keywords.

PPC advertising can be beneficial advertising tool for your company if you identify keywords, create engaging ads and track your campaigns to measure their effectiveness. If you’re interested in learning more, visit our digital marketing page to see what The Studio has to offer.