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How Does PPC Marketing Work?

Online advertising has become a near-requirement for businesses who are looking to pull in new clients. While there are a lot of options out there, one of the most consistently popular choices is pay-per-click marketing or ppc. Before getting involved in ppc marketing, though, it’s a good idea to understand what it’s doing for you and to get a general grasp of how the system works.
How Does PPC Marketing Work?

The Sandwich Board Metaphor

Say, for a moment, that your business hired someone to put on a sandwich board. This person’s job is to go out and to tell people how great your business is while walking the streets. You don’t pay this person a wage, but rather you pay this person a set fee for every customer he gets actually to step inside your store.

That’s kind of how pay-per-click marketing works.

When you start a pay-per-click marketing campaign, you design an ad and assign it to certain keywords. When someone searches for those keywords, your ad comes up. It may come up in the search results, or it may be featured on a website. These sites are the people on sandwich boards telling passerby how great your business is. If someone clicks on the ad, they’ll be redirected to your business’s site. Every time that happens, you pay a fee, which might be as little as a cent or as much as a dollar.

Does It Work?

PPC marketing gets results, which is one reason it remains such a popular method of online advertising. However, it is important to remember that your metaphorical sandwich boards get paid whether someone purchases them in your store. As such, it’s important to tailor your ads to draw in people who are serious about shopping, so you eliminate as many casual browsers as possible.

How do I get the most out of my PPC Campagin?

  • Research the demand for your product or service:

    Do a little research before you put your product or service into the market, check statistics and trends for your product or service.The goal is to see if there is a demand or potential for your product or service. And if there is, identify the demographics of your potential buyers.At the end of this research you should have a rough idea about marketability of your products or service.

    Google Trends can give you a good starting point for your niche market.
  • Identify your audience

    Try to get to know your potential buyers. The demographic information of buyers can help you optimise your PPC campaign to specifically target them in your PPC campaign, minimizing budget wasted on the impression that the audience is less likely to buy your products or services. This information includes locality, age, gender, interests, employment, education, job title, household, etc.These information are cruicial in setting up a successful campagin.

  • Find most searched keywords

    Find keywords and search phrases that has most relevancy and search volume spicific to your products or services, besides that you should consider the cost of these keywords after evaluating the efficiency of your conversion rate in terms of cost and ROI for each keyword selected.

  • Define negative keywords

    By defining a list of negative keywords in your campaign's negative keyword list, you can further minimize wasting your budget spent, keywords like: "Free" and any keywords that you think it is not a buying intention term.

  • Device Targeting

    Depending on your niche you would have and idea which device the majority of your buyers browsing your ads from, in most of the cases targeting mobile devices are most likely to convert the best.

  • Ads wording

    Try to write compeling words to get the attention of potential buyers, having more diverse ads in ads group in your campaign, gives the platforms like google to show the best performing versions of your ads more often when searched.

  • Use ad extensions

    To increase the quality score of your campaign you may want to use ad extensions, these are additional information that displaied with your ad, information like extra links, location, phone number to call and etc.

  • Monitor CTR and Convertion Rate

    With every PPC campaign the aim is to have higher CTR (Click Through Rate) and With setting and defining conversions on your GA (Google Analytics) platform for your landing page, you will be able to measure efficiency of your CTR, which furthue helps you to optimise your campaign settings and keywords.

Frequently asked questions with answers:

What is PPC campaign?

PPC or Paid Per Click is a type of advertising model that places adverts based on bidding price in a search engine's top search result list. Every time someone clicks on the ad, it charges the campaign, the ad will continue to appear on search results until the campaign's budget gets exhausted, and then the ad will not display unless you top up the budget. This model is faster than organic ranking but costs money to appear on top results.

How do you plan a PPC campaign?

Here are common process:
  • Search for keywords on demand using keyword tool.
  • Identify negative keywords and create the negative keywords list for the campaign in negative keyword settings section
  • Adjust campaign according to your budget
  • Research the market competition and try to balace keywords CTR to Costs
  • Write Compelling ad wordings
  • Have call to action and offers in your ad
  • Use ad extensions
  • Target your potential buyers
  • Always monitor performance of your campaign and adjust campaign settings and keywords list accordingly
  • Define conversions to be able to evaluate the efficiency of your campaign

What are the PPC types in marketing?

The most common types of PPC campaigns:
  • Paid Search Marketing
  • Display advertising
  • Social Media Advertising
  • Remarketing Model
  • Price comparison Website ads
  • Affiliate marketing Model

Which advertsing model is better PPC or SEO?

PPC is almost instant compared to slow process of SEO, which it can take months after optimisation of your website to start seeing the results. SEO need maintenance and constant work to keep up with competition. in the other hand SEO appears natural with steady conversions, while PPC can sometimes be very expensive.

How much is the cost of PPC?

In Sydney, average cost per click ranges from $2 - $26, depending on the which industry and competition level. Usually businesses spend monthly budget of $3000 to $15000 on PPC to have a reasonable ROI (Return On Investment).

Is PPC effective?

Having control over how much and when to spend and targeting specific audience in specific regions combined with powerful metrics on conversion rate of the campaign makes PPC model more cost-effective and precice with almost instant results. Suitable to tight marketing deadlines.

Other articles you might be interested in reading:

You aren’t looking for a huge spike in traffic with PPC marketing; you’re looking to attain their email address or a purchase depending on your strategy if you need more information on PPC marketing or just advice on how to make your campaign as strong as you can.

Find out today with our Complimentary Online Marketing Audit.

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