What is Pay Per Click – The Ultimate Guide 2023
The rise of digitalization has made it essential for companies to shift their businesses to the world of the internet. Just like the traditional corporate settings, companies have to market their products online to reach their target audience as well. Nowadays, several methods of advertising and promoting a product or service online have been introduced. One of these is Pay Per Click, or simply, PPC.
If you’re curious about “What is Pay Per Click”, this article will guide you through all the basics and details that you need to understand PPC advertising for marketing your brand yet are not sure where to begin.
What is Pay Per Click?
Pay-per-click, or PPC, is a type of online marketing in which the advertiser gets charged every time one of their advertisements is clicked by a. In essence, you are paying for precise visitors to your website (or app or landing page). The cost is little when your PPC strategy is successful since each click is valued for more than what you spend for it. For instance, you would have made a big profit if you paid $5 for a click that generated $500 worth of sales.
PPC advertising can include anything that is included in a normal ad, such as text, graphics, videos, or a combination of these. These also can be created in a variety of sizes and forms and may be published on websites, social media platforms, search engines, etc.
How does PPC advertising work?
Even though the appearance of PPC advertising varies on each platform, the general process is as below:
- Select a campaign type based on your goal.
- Customize your targets and settings (audiences, locations, devices, schedule, etc.).
- Specify your budget and your bidding approach.
- Enter your target URL here (landing page).
- Create your ad.
After your ad is published online, the algorithm determines where and when your ad is displayed, as well as how much you are paying for each click. This depends on your bid, budget, and campaign parameters, as well as the quality and relevancy of your ad.
What are the types of PPC ads?
All PPC ads tend to work the same way, however, the overall type can be different as per your demands and requirements. Some of the different types of pay-per-click ads are as follows:
- Display
A display ad is a kind of digital advertisement that displays on websites, mobile applications, and other digital platforms, usually as a banner, etc. Display ads are aesthetically appealing and can feature a range of media, including photos, videos, and interactive components.
Display advertisements are frequently used to increase brand awareness, promote products or services, or direct people to a website. Display advertisements are often acquired on a cost-per-thousand-impressions (CPM) or cost-per-impression (CPI) basis, which means that the advertiser has to pay every time the ad is shown a particular number of times.
- Video
A video ad promotes your brand, product, or service, by using some video-based material. This advertising can be shown on several different venues, such as websites, social media (posts or reels), and streaming services like YouTube. YouTube video advertisements can be post-roll, mid-roll, or pre-roll, i.e., they can be displayed after, during, or before your video. These could also be skippable or non-skippable.
Video ads are generally interactive and include clickable parts like links, calls-to-action, forms, etc. They are often bought on a cost-per-click (CPC) or cost-per-view (CPV) basis, with the advertiser paying every time the advertisement is clicked on or viewed.
- Search
The most common type of PPC ad is search pay-per-click advertising. When a customer types a specific query (search keyword or phrase) into a search engine, a search ad is displayed at the top of search engine results pages (SERPs). These advertisements are primarily text-based and are intended to be very relevant to the person’s search.
Advertisers often pay every time a user clicks on one of their adverts (the cost of every click is referred to as cost per click or CPC). Search advertising is the most common approach for companies to market their products or services and attract visitors to their websites.
Benefits of Pay Per Click
PPC advertising has several advantages over traditional SEO and social media marketing. Some of these include:
- Quick results:
Pay-per-click can generate website visitors very quickly, while SEO might take longer to show results. Most platforms generally approve PPC ads the same day, ensuring maximum exposure instantly. Utilizing several channels in various formats might help your business get attention even more.
- Reach your targeted audience:
PPC advertising enables advertisers to target certain interests, demographics, and geography, allowing them to reach their intended audience. Moreover, you can target people on the basis of their habits and interests, since social media platforms can assist you in getting your ad to the group that is most likely to drive sales.
- Measurable:
PPC ads yield measurable outcomes. These allow marketers to measure return on investment (ROI), conversions, and other key performance indicators (KPIs).
- Cost-effective:
As advertisers only pay whenever a user clicks on their ad, and they may determine a budget for their campaign, Pay per click ads may prove to be more cost-effective as compared to conventional advertising methods like print media or TV.
- Branding:
PPC advertising can help in the promotion of your overall brand. This is because even if someone chooses not to click on your advertisement, they will still be seeing it and thus, remember your company.
- Complementing SEO:
PPC may be used effectively along with your SEO strategy. Although SEO is related to improving organic traffic, PPC may be used to increase instant traffic to a website whilst SEO activities are underway.
What’s the difference between PPC, SEM and SEO?
Although these three terms are sometimes used simultaneously, there is a clear difference between PPC, SEO (search engine optimization), and SEM (search engine marketing).
PPC is a type of online advertising that uses websites, search engines, and other similar platforms like image-based ads (social media) or video ads (YouTube).
SEO is a method for improving a website’s layout and content for increasing its visibility to search engines. This is done through the use of relevant keywords, developing high-quality content, optimizing metadata, and building links from other credible websites.
SEM is an umbrella phrase that could include PPC yet isn’t confined to this type of advertising. It refers to activities aimed at making it easier to locate a website using a search engine. SEM includes both paid and unpaid traffic, such as PPC and organic traffic (SEO).
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