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What is PPC or how does PPC work?
PPC stands for Pay Per Click, it is considered one of the best ways to drive traffic to your website. PPC advertising is a method of online marketing in which ads are being placed in a planned way on SERP.
It enables you to get quality traffic without wasting a valuable amount of money. PPC is an auction-based system where advertisers bid to rank on the first page of search engines to target the audience. It basically determines the success of online advertising and email campaigns.
In this method of marketing, advertisers are only charged when their ads are clicked by the users. Here the main focus is to buy the traffic rather than getting organic traffic. Examples of PPC ads are Facebook ads, Google ads, Twitter ads, etc.
Terminologies of PPC:
4 C’s in PPC can be defined as:
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CPC:
It stands for “Cost Per Click”. It can be defined as the specified amount of fee being charged to the advertisers whenever someone clicks on their ads. The amount spent is known as Cost Per Click.
The fee depends on the competition of the space where you want to put your ad.
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CPM:
It stands for “Cost Per 1000 Impression”. Here, an advertiser pays to show his ads 1000 times regardless of how many times it has been clicked.
CPM is mainly used for display and video ads.
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CTR:
It stands for “Click Through Rate”. It can be defined as the number of clicks to the number of impressions.
CTR= no: of clicks on ad impressions.
For example: if your ad is clicked 3 times and the number of impressions is 100, then CTR = 3%.
The good CTR for search and display ads would be 1.9% whereas for search ads average CTR would be 3.17% and for display ads average CTR would be 0.46%.
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CPA:
It stands for “Cost Per Action”, another important terminology of PPC. Here, the advertiser has to pay, when a specified action is completed by the user. It is mainly used in affiliate marketing.
For Example the conversion can be calculated on the basis of completion of any event like making a purchase, filling a form, or getting a quote.
Benefits off PPC for small business?
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Extremely targeted:
It allows you to target your audience according to their location, age, gender, interest, keywords, language, behavior, etc.
This results in saving a huge amount of money which would have been wasted in showing the ads to the people who are not interested in buying your products and services.
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Extremely flexible:
It allows you to show your ads to those people as well who have visited your website previously. This is known as retargeting the potential audience. Retargeting is very important because only 2% of people coming to your website gets converted into sales. So in order to get business through rest 98% of people retargeting is done. Retargeting reminds the people to come back and check out the products and services they missed.
This allows businesses to get more conversions, which were not converted earlier.
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Cost-Effective:
Here, the businesses only have to pay when their ads are clicked. According to Google, 71% of traffic is captured by first-page search engines and it has gone high to 92% during recent years. More traffic is equivalent to more conversions. It gives you an opportunity to be placed at the top of the search engine ranking page, even above the organic results.
For Example: Suppose, it costs you $10 to get a click on your product and the selling price of that product is $100, thus ROI (return on investment) will be $90, which is quite high.
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Trackable:
It’s easy to track the performance of any ad campaign. If any ad campaign does not give you the desired result, it can either be tweaked or called off. In order to track the campaign, there is a powerful tool developed by Google called Conversion tracking can be used. It basically measures lead generation, sales, downloads, and other desired actions taken by users after interacting with your ad.
Conversion rate is a term that tells whether people are clicking on your ads, getting converted or not. The quality score measures the success rate between 1 to 10 of any ad campaign.
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Quick Result:
As we know, it takes at least 3 months to rank in organic results of a search engine page. But, PPC allows you to show up your ads on the first page in just a few days. So if a business wants to target its audience, PPC is a great option for driving sales to your website as early as possible.
So if you have a sufficient amount of money to spend and you have less time to drive sales, then PPC is the best way of digital marketing. One of the best digital marketing agencies of Indore has helped various firms to run their ads campaign via PPC, resulting in them driving sales in just a few days. Hope you guys have learned how does ppc work.
