How Does Pay Per Click Work


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Over 50% of companies use PPC ad campaigns for their business. But for many business owners, PPC ad campaigns seem like a foreign language. Regardless of your pay per click advertising knowledge, this article gives you a basic understanding of PPC and teaches you how to use a pay per click advertising campaign to boost your business and strengthen your market outreach. 

 

It answers such questions as what is pay per click, how it works, how keywords affect it, and how enterprise SEO services can help you maximize the benefits you receive from your campaigns. If you’re an enterprise business owner looking for easy ways to strengthen your marketing and lead generation, stay a while and learn all-things PPC. 

What Is Pay Per Click?

Pay per click (PPC) is an online advertising method where companies pay Google or any other SERP every time an internet user clicks on their ad. Though different types of PPC ads exist, the most common is the paid search ad. These are the ads you see at the top of Google’s results pages when you input a search query.

 

Paid search ads are most common for people performing commercial searches. For example, an internet user might be interested in party planning services. They type “best party planning services in New York,” and four companies appear at the top of Google’s search results with the word “Ad” next to their link. 

 

PPC paid search ads are most applicable to mobile searches (someone searches for the best pizza in town), local searches (someone searches for the best party planning services in New York), or someone shopping for a gift (buying a guitar for a nephew’s birthday). 

 

The businesses that run these ads only pay if someone clicks on their ad. Hence, the name pay per click. But other PPC ads aren’t paid search ads; examples of other PPC ads are banner ads and remarketing. 

How Does Pay Per Click Work? 

Now that you understand what PPC advertising is, let’s discuss how you can tell whether it makes sense for your company. If a PPC ad works, it pays for itself. Let’s say you start a campaign at $2 per click. If you get one customer who buys $100 worth of merchandise, you’ve already covered your cost for fifty clicks. However, a disorganized and hastily coordinated PPC campaign can waste precious advertising money, so it’s essential to understand what you’re doing. 

 

An effective pay per click campaign uses the correct keywords, organizes those keywords into campaigns and ad groups, and creates optimized landing pages that direct users to purchase options. Coordinating all these elements can be challenging, especially for someone new to PPC campaigns and SEO. That is why enterprise SEO solutions can help take the burden off your shoulders. 

 

Search engines favor companies that create relevant, captivating search engine campaigns by charging less per click. So when designing an ad campaign, try to focus on the user’s experience above all else. Search engines can tell when internet users find your landing pages and content useful to their needs. 

Types of PPC Ad Campaigns 

This section discusses the different types of PPC ad campaigns. Most of these methods fit into one of two categories, Google Ads (Google Adwords) and Social Media Advertising. The most common forms are as follows: 

 

  • Google PPC Ads 

  • Search Ads

  • Local Search Ads

  • Display Network 

  • Pre-Roll Ads 

  • Remarketing or Retargeting 

  • Social PPC Ads 

  • Facebook and Instagram Ads 

  • LinkedIn Ads 

Google PPC Ads 

  • Budget beforehand and pay the CPC (cost per click) each time people click on your ad. Once your budget depletes, your ad no longer runs. 

Google Search Ads 

  • The most commonly used PPC ad, these ads appear at the top or beside Google search results. Write your ad copy, select the keywords you want shown and select your daily budget. 

  • Getting the most out of your ad isn’t the easiest thing to do. Fine tuning your keywords and making copy that has rich snippets are both examples of how challenging it can be to execute an effective search ad campaign. 

Local Search Ads 

  • Local search ads are location-based Google search ads. Google search ads’ defaults to a national location. But if you’re a local business, such as a restaurant or gym, changing the settings to focus on your local area is a proven method to maximizing your ad campaign money. 

Display Network

  • Google display ads don’t show on search engine results pages (SERPs). They show on other websites. For example, an ad pops-up when you first enter a website. 

  • These ads are either text or media based and can show on up to 2 million websites and 650,000 apps. 

  • Choose your audience, determine your budget, and have your banner ad live based on either CPC (cost-per-click), cost-per-thousand-impression (CPM), or cost-per-acquisition (CPA)

Pre-Roll Ads 

  • Pre-roll ads are the most common form of video advertisement. 

  • An example of these ads are ads on YouTube that appear before the video you’re trying to watch. 

  • You can also choose cheaper options such as mid-roll or post-roll ads. These ads run in the middle of video content or after your video content finishes. 

  • You can use geolocation, language, demographics, interests, or topics to target your pre, mid, or post-roll ads. 

Remarketing or Retargeting 

  • Remarketing or retargeting ads reach the people who have visited your site in the past. 

  • These ads are either search ads or display network ads and use the automatic bidding price model.

  • Using remarketing ads helps you speak to your target audience. Because you’re not showing ads to people who may or may not be interested in your product or service, you tend to get much better ROIs on these ads. 

Social Media PPC Ads 

  • Google PPC ads have a slightly further reach than social media ad campaigns. However, social media campaigns offer a more targeted PPC approach. 

  • With over 1.55 billion monthly users, Facebook is the most popular outlet for B2B industries. 

  • LinkedIn is another strategic option to launch social PPC ad campaigns, but it is considerably more expensive than Facebook.

  • Instagram is another popular social media platform to use for PPC advertising. 

Create Goals for Your PPC Ad Campaign 

The best way to get the most out of your PPC ad campaign is by planning it out thoroughly. Deciding between a broader campaign through Google or a more targeted approach through social media depends on your company’s size, location, and target market. 

 

After you decide whether you want to use Google or social media, decide whether local search ads fit your model best. Once you choose your ad’s specifics, draft a budget, and see which pricing option works best for your business model. 

 

PPC ad campaigns are excellent ways to reach your target audience and get a favorable ROI on your advertisement money. But with only 36% of businesses having an SEO/PPC strategy, many companies waste money on ineffective ad campaigns that don’t pay off. 

 

Understanding PPC ad campaigns equips you to make wise advertising decisions. However, it is usually best to consult with an enterprise SEO service to figure out what the best option is for your business, and how best to prepare your PPC ad campaign.

 

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