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PPC advertising model
PPC is an advertising model in which a company pays when a user is redirected (via a link) to the promoted website. PPC is sometimes referred to as CPC – Cost per Click. PPC is a very popular payment model in online advertising because an advertiser pays only if the user clicks the ad,
not just for having the ad displayed. A consumer clicks a link to be redirected to the company website
and potentially accept the offered product or service. Payment for PPC is most often charged through the Google Ads system.
There are other payment methods like CPM – Cost Per Mile and CPA – Cost Per Action. In the CPM model you pay for 1000 ad displays, while CPA requires you to pay only when the user performs a specific action on the website, e.g. leaves his or her contact data.
The PPC advertising model is open to abuse through click fraud, although Google and others have implemented automated systems to guard against abusive clicks by competitors or corrupt web developers
How to use PPC ads?
PPC advertising is most frequently used as a payment model in search engine campaigns and contextual networks. You can also use it for ads posted as part of the rental of advertising space on a private website, on blogs for instance.
This kind of payment is most frequently adopted in Google Ads campaigns. The advertiser can set the maximum budget on his or her own and use it up gradually. When the advertiser runs out of campaign funds, he will be notified that another payment is needed. It’s beneficial not only because you pay for clicks on the advertiser’s website but you can also analyze precise data from the campaign.
PPC ads are often a sponsored link or advertising banner or a product photograph with a short description, price, and link to the product in the online store.You can also create video ads, which are more interesting and visible to users.
Benefits of paying for PPC
The major benefit of the PPC model is the fact that you pay for a specific action, but also that you can control your budget which can be adapted to campaign needs or the company’s capabilities. You pay for effects, that is for clicking an ad unit. The PPC ad must also be of good quality because the actual price depends on the Quality Score and the maximum click bid you set. High quality advertising in turn encourages more people to check ad details.
Such ads are also essential because when creating a campaign, you choose not only keywords which determine the sponsored link in the search results, but you can also exclude words which sound similar or are “clickable” but don’t generate profits for your business. You can also add the ad text or choose a graphic element on your own, adjusting the ad to potential customer’s needs, what they react to, and what the company wants to promote. You can create and modify campaigns even if you still haven’t used up the entire budget. This means another advantage – campaigns can be launched quickly. Since you can make changes, PPC ads can be replaced with other ad types, ones that are more promising and generate conversion, if they’re not effective.
Another advantage of these campaigns is the possibility of posting ads in many places. It can be links in search results or on partner websites. This means these ads can be posted by companies in any line of business and their range covers virtually the entire Polish Internet.
Real costs of PPC advertising
The advantage of using PPC advertisements is the possibility of setting the budget and controlling campaigns on your own. It does not, however, mean you can set the click cost by yourself. The click cost depends on the auction price. The advertiser declares the maximum PPC cost he or she can afford to pay. Factors like ad quality that determine the auction result, which is based on data collected from all advertisers in a specific category. The higher the quality of the ad, the lower the PPC rate. A lot depends on the category as well.
If a keyword given in the advertising campaign is popular and many advertisers give it in their campaigns, the rate per advert gets higher. When the word is less popular, it gets lower, so the PPC price depends on competitors too. For example, in 2016 the most expensive keyword was “helpdesk” at PLN 32,63 and the most expensive long tail keyword was “forex currency market for inexperienced investors” with PLN 70,56. This is why it’s advisable to use a keyword planner that shows which keywords are more beneficial not only in terms of search frequency, but also favorable PPC rates.
When the campaign fails to bring expected results, it’s important to make use of PPC ad flexibility and make changes immediately. You don’t want to use your entire budget right away, that’s not the point. PPC advertising is supposed to bring real value to the company, so when something doesn’t work, you have to modify it. Thanks to this, you cannot only increase effectiveness of the campaign itself but also reduce budget expenses. Many companies test their campaigns before they set the final budget in order to check what’s most beneficial and only then then do they proceed and take action.
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