What Is Paid Advertising or PPC Advertising?

PPC Advertising or Pay Per Click Explained

PPC Advertising is a part of Digital Marketing. Here the advertiser creates an ad to be advertised on search engines. And each time a user clicks on that ad, the advertiser has to pay some amount to the Search Engine.

It is basically a paid marketing where you are buying visits or clicks to your website instead of acquiring the organic clicks or visits.

The paid ads will appear above and below the organic, non-paid search results.

CPM & CPC

Cost-per-click (CPC) means that you pay the search engine every time a user clicks on your ad.

Cost-per-impression (CPM) means that you pay to the search engine for every 1000 appearances of your ad on the page. The user does not necessarily has to click on your ad. It is only about page impressions.

If your goal is Brand awareness then CPM is your best bet. But if you aim for Sales, then CPC is for you.

How Does Pay-Per-Click Advertising Work?

If you are going in the direction of thinking you can get the top desired position of your ad by just paying more than my friend you are wrong.

Instead, there are many factors considered to designate the top place to your ad for a particular keyword search phrase. The ads are substance to the Ad Auction. This is a completely programmed procedure that major search engines like Google and Bing use to regulate the significance and weightage of advertisements that are visible on their SERPs.

Why is PPC Advertising important to Internet Marketing?

Pay per click or PPC advertising is the “shortcut” to generate traffic to your business.

The key rule to PPC advertising is quite simple.

Spend smartly

Get top ad placement

Get potential customers

If you have created the ad smartly then, when the users search for the keywords you’ve placed your bid on you will start getting clicks of potential clients right from the moment you activate the ad.

PPC advertising is fast.

When you utilize PPC advertising with Google in the form of Google AdWords, then you can generate targeted traffic in as fast as some minutes after opening the account.

Have you witnessed any other advertising plan work as fast as PPC advertising? May be not. With right tactics you can reap the benefits in literally no time.

PPC advertising is Agile

As a standard procedure, almost all advertising and organic search engine marketing practices, lag behind by weeks or even months to adjust to the changing customer behavior.

Whereas with PPC advertising you can adjust the campaign in just a few hours or maximum a few days.

This makes for a great advantage for PPC advertising over other Search Engine Marketing methods. Because with PPC you can adjust to the changing market trends and customer behavior in an easy, operative and time-effective manner.

PPC Advertising is an absolute Steal

It is usually observed in advertising area that top rated keyword phrases are a really tough competition to break-through.

But, in PPC advertising with the help of a professional Digital Marketing Company you can discover some “long-tail search terms”. These unique keyword niches can be an absolute steal when you place your bid on them.

This way PPC advertising is a better, smart and cost-effective digital advertising technique to attract targeted traffic to your website, as compared to any other form of paid advertising.

Be Cool not a “Fool”

If not done correctly then

PPC advertising can be Really Puzzling

If not careful then PPC advertising can cost you big time.

At times it has been seen two advertisers indulging in an “ego war” on bidding for a particular keyword.

Never do that.

There are many smart ways to get the top place for the ad you are running. Do not take it to your ego sleeve and harm yourself with high per-click cost for highly searched keyword phrases.

Another challenging aspect of running a PPC campaign is that it does not Scale.

More Traffic = More Cost in PPC Advertising

Overall cost in PPC advertising is almost directly proportional to the traffic generated. This is because the cost per click on your ad remains the same, even when you get more traffic. This increases the overall cost of the campaign.

Now if you compare PPC with basic SEO practices then you will see the difference in cost proportion. In SEO when you invest money for a campaign to achieve a better rank, the overall cost per click goes down with increasing traffic.

How ICO WebTech helped one of our clients?

As a part of one of the best rated digital advertising company in Delhi NCR – India, I can say that managing and successfully running a PPC campaign is a sure art.

Here’s how we helped one of our clients through PPC advertising.

Low Cost Automotive Parts

Place order now

Well this was the original ad run by our client which did not perform profitably. The major reasons for the poor performance are:

The ad is not focused – if someone actually has to search for automotive parts, he will most likely search for individual parts. Not for an automotive parts company.
The ad is not very suggestive – if someone advertises on Google then it is quite likely of taking order online.
The ad is not optimized – if the user’s search query terms does not match with your related ad then what’s the point?

This resulted in a high overall cost and a very poor conversion rate. The client was paying precisely $1.5 per click for the first position in search results. They got around 900 clicks per day with less than 1% conversion rate. This made them an approximate profit of $7 per order.

1.5% click through rate
1% conversion rate
900 clicks per day
900 clicks * $1.50 per click = $1350 cost per day
.01 * 1350 * $6 = $81 profit per day

Of course no profit was made with this kind of calculation.

Here’s how we made it a hit for them.

Instead of one generalized ad we made four specific and targeted keywords ad.

Tubeless Tires for Car

A Complete range, Delivered overnight

Headlights for Luxury Cars

Shipped Same day. Best Price.

Seat Covers in all Colors, Premium Quality

Affordable Price. Delivery Overnight

Music System for Cars

Best Price. Delivered overnight

The above ads we created had keyword combinations in the title based on the number of daily searches we were tracking. Third place in the search page now cost $.15 per click per ad. And voila, within a few days the performance sheet of our client’s PPC advertising looked like this:

12% click through rate
8% conversion rate
200 clicks per day
Average profit per order: $6.00
200 clicks * $.11 per click = $22 cost per day
.08 * 200 * $6 = $96 profit per day

However the bid we placed got them third position on the search page. But due to the high click through rate we got them on the first or second position for each targeted keyword.

Yes the clicks per day got down, but the overall profit of our client increased exponentially.

Learning: