Pay-per-click ads (PPC) are a cost efficient way to display ads to your desired audience. Ever noticed the sponsored ads at the top of a search result page? Or a pop up ad when browsing through a website? – those are referred to as PPC ads.
In this article, Luxeveda team talks about how PPC ads work and why you should consider implementing a PPC strategy into your marketing plan!
What is pay per click?
Pay-per-click is a form of online advertising where advertisers pay each time their ad is clicked. It is a strategy used to lead potential customers directly onto a website in order to gain valuable transactions such as the purchase of a product or service. The most effective form of PPC is Search Engine Advertising (SEA). To show up at the top of a search engine’s results page when someone searches a keyword related to your business offering – you need to bid for ad placement in the sponsored links section.
The two most common ad platforms advertisers use are Google Ads and Bing ads.
Most businesses use Google ads simply because it is the most popular PPC advertising platform and therefore has a larger reach.
How it works:
As mentioned above, PPC is an auction-based system where advertisers place bids to reach and target users online. The process is fairly simple:
- Sign up to an ad platform like Google Ads.
- Create your ad and select relevant parameters such as keywords, target audience, etc.
- Define and set the maximum amount you are willing to pay for each click.
- This is where your ad goes into an auction where other advertisers are bidding for the same keywords.
- The auction determines whether the ad will be shown or not as well as the order it will be shown in.
- The system choses relevant ads based on your bid, your ad quality, the Ad Rank thresholds, the context of the person’s search etc.
- With the right keywords and ad, you can rank higher even if someone has bid for the same keyword at a higher price.
- Finally, you pay every time your ad is clicked.
Rapid results: Compared to other advertising channels, with PPC, you are able to see returns very quickly.
Track your progress: Ad platforms allow you to measure and track your conversions. You will be able to track which keywords or ad groups are performing well. These insights can be used to refine your campaign for a higher ROI.
Full control: You have the control to run, pause or turn off ads whenever you want. Maybe you are at full capacity and you want to pause your ads or you want to run ads to generate new leads. Either way, you can choose what day and time your ad runs and most importantly, you can decide how much you pay per click.
Target customers the right way: With PPC, target your customer base relevant to your business. Within the ad platforms, you can display your ads based on location, device used and even the time of day.
Choose an ad format that suits your business needs: PPC offers a variety of ad formats. The most common one being search ads that are displayed at the top of the search results. Have a new product you want to promote? You can display a google shopping ad that will show up in carousel format at the top of the results. It is a digital window shopping experience for the consumer as they get to view products before they click on the website.