Advertise with Pay Per Click.... #44
- Adrian Dionisio - business737 owner
- Dec 7, 2021
- 4 min read
Updated: Apr 2, 2024
Paid search ads, linked to your specific keywords, will get you to the top of a search page. You pay for each click on your ad that’s why it’s called Pay Per Click.
Getting your ad into a highly visible area involves winning an automated auction. This involves the price-per-click you bid on a given keyword, as well as the quality (as determined by SEO principles) of your site.
You have one line to get noticed, amongst all the other crabs in the bucket, and get them to click your link. PPC advertising can be purchased on;
Search engines like Google
Social media sites such as Facebook, Instagram etc.
On websites as display and banner ads
You bid for position and pay to appear under a particular search phrase. You only actually pay when somebody clicks on the advert. PPC advertising can be used to build brand awareness. It is also a great way to encourage customers to take immediate action like buying a product or signing up for a mailing list.
The advantages of PPC
There are several advantages of using PPC:
You only pay for the visits / clicks you receive
You get your ads in front of exactly the right audience
You can decide when and where your advert will be shown
It is measurable and trackable
You decide how much a visitor is worth to your business & set your advertising bids accordingly.
You control costs by setting a limit for your total advertising spend.
You can try out different variations which give you more possibilities for optimisation
You receive detailed analysis of how well an advertising campaign is performing.
You can retarget previous visitors
Key Concepts to Understand About PPC
CPC / Cost Per Click
CPC = cost ÷ clicks
CPC is the price you pay for each click on your ad. You can agree on a fixed price per click. The price can also be determined through an auction where you establish a maximum price that you are willing to pay for each click. Your ad is compared to similar ones based on quality and price. The winning ad will be showed in first place.
CTR / Click Through Rate
CTR = clicks ÷ impressions
CTR is the number of users who click on an ad out of the total number of users who have seen it. This metric can help you understand your customers. It tells you what is working as you are trying to reach your target audience.
A high CTR is an indication that you're getting closer to your goals of more leads and more sales. A low CTR could indicate that your ads are not a good match for your target audience. Remember that the click increases the chance of purchase but it is not guaranteed.
Impressions
An impression is a view of your ad, irrespective of whether the user clicks it or not.
Segmentation
With digital marketing, you can choose to target a particular audience with your ads. You can segment the audience based on factors like age, gender, location, interests, etc. Each pay-per-click platform offers different options. Prudent selection can achieve a high level of accuracy and ensure that you are only paying for clicks from users who have a good chance of becoming your customers.
Landing Page
After clicking on your ad the user will be directed here. Here the user can convert, browse or leave so it is very important for the site to be well optimized. Clarity, simplicity and relevance are important issues to be considered (read more).
Conversion
Conversion ratio = number of conversions ÷ clicks
This is a purchase made by a user after clicking on your ad. Conversions are the most important metric for a PPC campaign. The truest performance of your ad is measure against sales. The conversion ratio is the percentage of users converted into customers out of all the users that clicked on the ad.
Frequency
Frequency = number of impressions ÷ number of unique users
This is the number of times each ad is shown to a specific user during a given time period. Often users see an ad several time because this ensures that they are actually impacted by the ad. However, keep in mind that excessive targeting can end up generating rejection.
Do remember this about PPC
Be mindful that successful PPC requires an investment of your time and resources. As with everything else in your business you need to constantly strive for improvement through learning. It takes testing and experience to set up effective campaigns so you may want to consider outsourcing these activities. Keep in mind that PPC is an expense. Continue to optimise, track your ROI and always test and measure.
PPC can be quite complicated
PPC shares advertising’s woes
PPC is not free
PPC is not a guaranteed way to get sales
PPC firms can be a pain
Rules of engagement
Set max daily budget
Manage costs
Track conversions
Change ads that are not working - not driving traffic / sales
Test, test and do more testing
As with SEO, keywords are a fundamental element of paid search ads. Popular keywords will cost more per click than less common terms. Remember, like with all ads and marketing (click here) keep your customer in mind, know who they are, who you are talking to and what will capture their attention. Write your ads with these things in mind.
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