Pay per click is one of the most cost-effective digital marketing models. Why I am saying this because this model turns every penny you spend into results. In the PPC model, advertisers need to only pay when somebody clicks on your ad. For instance, you spend around $5 on Pay Per Click Advertisement, and you make at least $200. Even when the revenue is not much, when we compare it with ad cost, it is definitely a win-win situation.
Key Benefits of Pay Per Click
Businesses are increasingly using Pay Per Click to maximize their revenue. This is because it offers various benefits over other forms of marketing:
Specific Targeting:
Compared to other forms of advertising like banners and billboards, PPC networks such as Google AdWords and Facebook AdWords can filter audiences by demography, interest, and behaviour to ensure the right audience is reached. This means that consumers do not come across Waste ads, which in turn saves advertising costs.
Measurable Results:
They also have real-time data, including clicks, impressions, CTR, conversion rate, and ROI during PPC campaigns. Such openness assists in arranging campaigns to generate the most revenue.
Fast Results:
Compared to SEO, where one may have to wait for months before witnessing a change in the site’s ranking, PPC campaigns can provide an immediate traffic boost. This is especially true for businesses that require urgent marketing strategies.
Flexible Budgeting:
PPC permits the setting of daily or monthly budgets, which makes it possible to control the cost implications of advertising. Based on the results and objectives of the promotion, it is fairly simple to make changes to ad spending and timing.
Competitive Advantage:
PPC is an effective way of placing your company at the top of the list in search engine results or social media. This can enhance brand awareness, thus attracting more visitors to your website and business premises.
How Pay Per Click Works on Google?
We all have seen Pay Per Click ads on Google. You must have seen the search results that appear with an Ad sign in the top results. Whenever we click on that search result, Google charges for it.
Let’s see how actually this results comes up and how PPC works on Google:
- Someone searches on Google.
- Google takes a look at its advertiser directory with the same or similar keyword.
- After that, the ad rank is determined based on the maximum bid and quality score.
- After someone clicks on a particular ad, Google charges the bid.
- The users is directed to the ads landing page where they can decide to take action or leave that page.
Now, you must be wondering how Google decides the Ad rank. It is a simple process; ad rank is determined by two factors.
Ad Ranks Formula:
Bid x Quality Score = Ad Rank |
Now we must understand these two factors to get a better ranking of Advertisement.
Cost Per Click:
CPC is also known as bid. It is the average cost that is specific to the keyword. You can choose the cost as per your budget as it is flexible and can be changed. The advertiser who makes the maximum bid gets a better ranking.
Tip: Research the average cost of the keyword well and never bid more than your budget.
Quality Score:
Another factor that determines the Ad rank is the Quality score. Quality Score is a point on a scale of 1 to 1o that is decided based on the following factors:
- Clickthrough rate (CTR)
- Keyword relevancy
- Landing page relevance
- Landing page quality
- Ad text relevancy
Quality Score Formula:
User Experience + Relevant Keyword + Expected CTR= Quality Score |
Tip: Make your ad as relevant to your target audience as possible. Include necessary information.
For Instance:
Advertiser | Bid | Quality Score | Ad Rank |
A | $4.00 | 6 | 24 |
B | $7.00 | 1 | 7 |
C | $3.00 | 10 | 30 |
D | $5.00 | 2 | 10 |
This clearly shows that the Ad Rank score is highest for C advertiser. That means C’s Ad will be on the top of the search page. This example also clarifies that even the maximum bid can not guarantee the first position in the ad. It is always a combination of Bid and quality.
7 Steps of Successful Pay Per Click Campaign:
Making a PPC campaign takes a planned approach. Here is a tried and tested strategy for successful Pay Per Click advertisement:
Set Clear Goals:
- First of all, it is very important to state as many specific and achievable goals with your PPC campaign as possible. What are your ultimate goals: traffic on your website, more leads, or more sales?
- Define who you wish to target with the adverts. Such factors as demographics, interests, and behaviors for instance.
- Set tangible objectives for the campaign in terms of click-through rates (CTR), conversion rates, and return rates of investment (ROI).
Set Up Account:
- Choose a PPC network for example Google AdWords or Facebook AdWords depending on the market you are targeting and the type of advertisement campaign.
- All of the client’s information needed must be filled in this section inclusive of business-specific information, payment details, and tracking information.
- Complete all the necessary steps to verify the account you’re using for advertising currently on the platform.
Keyword Research:
- First of all, try to recognize your competitors and study how they use the determined keywords using keyword research tools.
- In this step, use some of the tools such as Google Keyword Planner, SEMrush, or Ahrefs to search for keywords.
- You should be aware of your target audience’s searching behavior and their preferences in order to choose the right keywords.
- Group keywords according to their relevance and according to the searcher’s motive.
Create Ad Copies:
- Review the particular ad texts used by main competitors for the relevant and engaging messages as well the relevant calls to action.
- They must include important features, the advert’s most crucial selling points, and a direct invitation to take action in the ad text.
- Headlines should be catchy, and the copy should grab the attention of the user and make them intrigued to click on the ad.
- Use the ad extensions such as site links, callouts, structured snippets, or any extension which provides more information about the ads and makes them more visible.
A/B Testing:
- What are some of the things that you should do with your ad copy? Create several versions of your ad where different elements are changed – for example, headlines, descriptions, and images.
- Assess the outcome of the different ad forms in order to recognize the most successful components.
- Ad copy should be constantly optimized taking into account the outcome of A/B testing.
Analyzing and Optimizing:
- Record some of the parameters such as click-through rate, conversion rate, cost per acquisition, and the rate of return.
- Since search engine optimization involves an optimization of certain elements or keywords, evaluate performance data to discover which of these are underperforming.
- Make required adjustments where needed, for instance, reviewing the keywords revising bids, or altering the advert copy.
Bid Management:
- Manual CPC or automated bidding are the two options suitable for choosing according to your campaign objectives.
- Calculate the cost per click using the given formula:
- Find out the maximum price that you are willing to be charged any time you make a click.
The Bottom Line:
Pay Per Click is one of the most effective and pocket-friendly digital marketing strategies that can help you boost your business. By following the steps given above and continuously monitoring and optimizing your PPC campaigns, advertisers can get the most out of it.
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