PPC model of online advertisement

What is Pay-Per-Click (PPC)? Pay-Per-Click or PPC model of online advertisement is an arrangement between the advertiser and publishers where the former pays the latter a predetermined fixed price on each unique click on a sponsored ad.

 

Typically, banner ads and sidebar ads are displayed to targeted audiences of the business advertising through PPC.

Why opt for PPC? There is no denying that while SEO is a long term and focused strategy, PPC delivers instant results. You can achieve targeted traffic to your website in a matter of hours using a PPC campaign. However, it is important to use Pay-Per-Click strategically because of the fact that cost is involved.

 

For instance, use it as a tool to promote new products/services or to consolidate the brand positioning of your company. Unlike traditional advertising platforms, with Pay-Per-Click there is a certainty involved that your prospective customer is engaging with your advertisement message and you only pay when that happens.

How PPC works? It all starts with narrowing down to the top keywords that you want to focus on. These keywords then take the form of advertisements and are pushed across out to online users who are querying for these keywords on a search engine.

 

When any user clicks the ad, a fixed payment goes to the search engine from the advertiser’s account balance that is setup before the campaign starts. This is usually tagged as a cost per click (CPC) – i.e. the amount the advertiser will eventually pay for the ad being clicked by an online user.

Every marketing and advertisement campaign in an organization must have a budget tagged to it, gone are the days of free advertisement, today’s competitive day and age demands a strategic pursuit of your marketing initiatives that comes at a cost.

 

You can’t expect to trigger customer defection from other brands to your brand without shelling a dime. Winning the loyalty of new customers is best achieved using an orderly approach such as the one that comes with a PPC campaign. Pay-Per-Click campaigns have been around for long, and many businesses, irrespective of their size of operations have benefitted from using it.

Pay-Per-Click campaigns can be highly profitable and great marketing tools on the one hand or a sizeable waste of money on the other. Often the difference is in the planning stage. Before you consider a Pay-Per-Click marketing campaign, you need to do your research to ensure that you have clearly identified business goals and you know exactly who your target audience is and what drives them.

 

Pay-Per-Click advertising works remarkably well, especially for the companies that provide the real estate. Some of the ways Google makes their sizeable revenues, in fact.

As a web marketer, you will participate in a public sale and bid for a prominent put on the search engines result page strongly related your keyword.

 

Google doesn’t always accept the highest bidder either as the company is also concerned about the viability and credibility of your page and how well you market your campaigns. They allocate their own quality score to your campaign and this affects where your ad ultimately appears.

 

PPC; Pay-Per-Click

PPC and search engines

 

 

Clearly understand your goals before you start. When you attract somebody to click on your ad exactly what action do you want them to take when they get to your website? This should never be an afterthought – it should be the primary consideration.

 

You have also got to be able to calculate how much such an action is worth in real terms to your business. Without doing this you are not going to be able to calculate whether your Pay-Per-Click program is profitable or not.

 

Put yourself in the position of your customers. Why do they need your product or service? What type of thought is going through their heads as they view your ad and when they get to your page? Are you answering the questions that you need to be answering at the right time in the potential buying process?

 

You may know by now that there are hundreds and hundreds of potential keywords related to your niche. You have to be able to conduct an adequate research process to be able to identify the ones that are relevant.

 

Come up with a comprehensive list at the outset and don’t just go with the first few that come to mind and group similar keywords into logical ad groups.

What are the likely search terms that your potential customers may use?

Compose a number of different ad groups with similar keywords in each ideally use 5 to 10 keywords in each group. Once you’ve got your keyword research and composition done, it’s time to work on your copy.

You only have a very precise number of words to play with and you have absolutely got to be able to hit the nail on the head. Remember that Google is also looking at the quality of your ad copy and will effectively penalise you if it’s not well thought out.

Effective Pay-Per-Click management hinges on several variables that are sometimes out of our control. Since there are so many ingredients involved in formulating that winning combination of keywords, ad copy, landing pages and budgets, the mix often becomes blurry.

 

Our job as Pay-Per-Click management experts is to sift through muck with extensive A/B Testing to find that recipe for success. But when it comes to budgets and poor website conversion rates – things often get tough.

Scenario 1.

After a PPC Campaign is optimized and delivering excellent results, the client 9 times out of 10 will want to spend more… which is great! However, sometimes the client is in a niche industry and is only selling 1 product or service. In this case, spending more isn’t an option for growth because in order to spend more (in efforts to make more) the optimization setting on the campaign will have to be undone.

 

Scenario 2.

Some clients have many items for sale on their website – and vast resources of cash to throw at it. However due to competition, prices, availability in the item or maybe poor website conversions – achieving a positive return on investment (or ROI) typically involves not being able to spend the complete monthly spending budget. When optimization settings are undone or even altered they risk tanking their ROI stats.

 

Scenario 3.

In the beginning stages of PPC marketing many companies have limited budgets at first, but have thousands of keywords / products. This is a scenario where the clients’ budgets do not support their keyword bank (number of keywords in their account), this forces Google to sporadically show their ads throughout the day to provide ample coverage of their ads based on their daily ad spend limits.

 

So what is the solution to all of these scenarios? That’s a good question in that no two Pay-Per-Click campaigns are the same. To implement a broad / blanket solution to any of these scenarios could lead to a negative resolution. Each case needs to be analysed from both a Pay-Per-Click management perspective as well as from a business perspective. When those two elements are considered during the problem solving process the outcome is usually favourable and profitable. As Pay-Per-Click Management Experts, we owe it to our clients to be truthful and present them with the facts. But in the long run, if your motives are pure (not making excuses) your clients will respect you and continue the business relationship.

 

 

photo credit: Danard Vincente via photopin cc