PPC advertising
The advertising model in which a company pays only for clicking through a link (e.g. a link) to the promoted website is called PPC advertising.
PPC advertising, short for Pay Per Click, or CPC for Cost Per Click, is a very popular pricing model in online advertising because the advertiser pays only for successful clicks on the ad, not just for its display.
With the CPM model, you pay for 1000 ad impressions, while in the latter – CPA for the action taken, i.e. only when the Internet user performs a specific action on the website, e.g. leaves contact details.
The consumer clicks on a given link to go to the company's website and theoretically take advantage of its offer.
(The rest of the article can be found below the form)
This model most commonly applies to sponsored link campaigns in the Google search engine, i.e., Google AdWords (Google Ads) . Other billing methods are also available, such as CPM (Cost Per Mille) and CPA (Cost Per Action).
How can you use PPC advertising?
PPC advertising is most often used as a payment model in search engine campaigns and in contextual networks.
It can also be successfully used for advertisements placed as part of the rental of advertising space on a private website, for example on blogs.
This method is most commonly used in Google AdWords campaigns. Advertisers can set a maximum budget, which will be used up gradually. When the funds donated to the campaign run out, the advertiser will receive a notification requiring another payment.
However, this is beneficial not only because you pay for a specific click on the advertiser's website, but PPC advertising also gives you the opportunity to analyze specific and accurate data from the campaign.
Such advertising is most often a sponsored link, a displayed banner ad, or a product image with a short description, price, and a link to that product in an online store. However, video ads can also be created, which are more engaging and more noticeable to users.
Benefits of PPC billing
The key benefit of the PPC model is paying specifically for action, but also control over the budget, which can be adjusted to the needs of each individual campaign or the company's capabilities. Here, you truly pay for results, meaning for clicks on the ad unit.
PPC advertising must also be of high quality, as the actual price depends on the quality score and the maximum bid per click. High ad quality, in turn, will potentially encourage more people to check out the ad's content.
Such ads are also very accurate because when creating a campaign, you not only select keywords for which, for example, a sponsored link should appear in search results, but you can also exclude words that sound similar or will be "clickable" but will not be profitable from a business perspective.
You can also add ad text or choose graphics yourself, so you can tailor the entire ad to what a potential customer would like to see and what they will react to, as well as what the company wants to promote at a given moment.
Campaigns can be created and modified freely, even if the entire budget hasn't been used yet. This also means another advantage: campaign launch speed.
Thanks to the ability to change, if a PPC ad proves ineffective, it can be replaced with another, more promising and higher-converting one. Another benefit of running such a campaign is the ability to place ads in multiple locations.
These can include links in search results as well as on partner websites, which are reported by their owners. This means that such ads can be placed by companies from virtually any industry, and their reach currently covers virtually the entire Polish internet.
The real costs of PPC advertising
The advantage of PPC advertising is that you can set your own budget and control your campaign, but that doesn't mean you can also set your cost per click yourself.
The cost per click depends on the auction price. The advertiser declares the maximum PPC cost they can afford and is dictated by the market, but factors such as ad quality will influence the outcome of the auction, which is based on data collected from all advertisers in a given category.
The higher the ad quality, the lower the PPC bid. However, it also depends on the category. If a keyword specified in an advertising campaign is popular and a large number of advertisers use it, the ad bid is higher. If the keyword is less popular, the bid is lower.
Therefore, it's safe to say that the price of PPC also depends on the competition in a given category. For example, in 2016, the most expensive keyword was "helpdesk" at PLN 32,63, while the long-tail phrase "forex currency market for beginner investors" cost PLN 70,56.
For this reason, it's worth using a keyword planner , which will indicate which keywords will be profitable not only in terms of frequent customer searches but also in terms of favorable PPC rates. It's also important to immediately leverage the flexibility of PPC advertising and make changes if a campaign isn't delivering the expected results. The goal isn't to use up your entire budget.
PPC advertising is meant to bring real benefits to the company, so if something isn't working, it should be modified. This can not only improve the effectiveness of the campaign itself but also reduce the budget spent. Many companies also test campaigns before setting a final budget to see what works best and then move on to larger-scale implementation.
Want to learn more about using PPC advertising for your business? Contact us!
Summary
The above article covers the following topics:
- PPC (Pay Per Click) advertising is an internet marketing model in which the advertiser pays only for the user's actual click on the link, not for the display of the ad.
- PPC advertising allows you to precisely reach customers through search engines, partner websites and videos, offering full control over your budget and the ability to precisely analyze campaign effectiveness.
- The PPC model offers payment for specific results, full control over the budget, and the ability to instantly optimize and precisely tailor ads to the needs of audiences across the internet.
- The actual cost of PPC advertising depends on the competitiveness of keywords and the quality of the ad, and campaign optimization and the use of a keyword planner allow you to effectively manage your budget.
