PPC marketing is a commonly used internet marketing term that sometime confuses people, especially beginners. It stands for Pay Per Click referring to the method in which advertisers get results from this method. This is done by way of paying for every click a user makes on an advert they place on someone else’s website like Google or a popular news website.
In marketing terms is a pull strategy because it pulls online traffic from the place where it is advertised to the target website whose owner pays for the traffic.
So this article explains what PPC advertising is about, why it is popular and how you can take advantage of it whether you are a beginner or a an expert in online marketing.
So why pay per click?
The internet is a huge market place full of people looking for products and services. You are in the online marketing business to capture some of that market in order to achieve your own goals. In the offline world you would advertise on different media like newspapers, radio and television in order to attract those potential clients to your store so that they can have a look at your products and more importantly buy the products or services on offer.
With offline media you pay for the advert first. How then do you know how many people will come to your shop after seeing the advert? You don’t! Unless you put in place measures at the shop when they arrive to find out how they came to know your shop or products. Which is a useful thing by the way, whichever way you get traffic to your products.
You want those customers who are more likely to buy your products to come to your shop (website), don’t you. I am sure you would also only want to pay for those who actually arrive at the your shop, and hopefully buy something or two. Therefore, would it not make sense to only pay per visitor who arrives at the shop? In the online context paying for each click that is made on the advertisement that leads to your website makes sense.
This is the methodology of PPC. It is a very efficient and measurable method.
What are the advantages of PPC?
Traffic is the backbone of internet business. Without any traffic you can kiss this business goodbye. PPC is a great traffic generation technique for the following reasons;
- Quick turnaround time
PPC pulls traffic in a short space of time. As compared to SEO methods, this method delivers much quicker responses provided the adverts are well crafted.
- Low initial investment
Generally search engines or advertisers do not charge for setting up the ad. You pay for actual clicks on the ad to your site. If there is no traffic then you do not have to pay for it.
- Market reach potential is huge on the internet
The captive audience on the internet is huge. You are not limited by your physical geography. Your marketing savvy can actually attract customers from the global audience rather than from your local area. Of course if your offering is only local for locals that may be the only exception. However, this still gives you the advantage over printed media which needs to be delivered physically to the market as opposed to online which the locals can access from anywhere.
- Measurable Results
Because you pay for an actual click it is easy to measure your desire results in terms of traffic arriving at your site. Additionally you can then calculate the cost of your marketing, the conversion rate (number of sells or sign ups as compared to traffic that arrived), as well as your profitability from the cost of marketing spent against revenue generated.
Who is involved in PPC Adverting
So who clicks on your ad?
This is a very critical target market question in marketing. You need to determine who is your target market and what keywords do they normally use when they are searching for products and services that you sell.
For example, if you place your ads on Google, you do not want to just show the advert to everyone because that is not very productive. You have to narrow down the specific search words and terms that your customers are going to be using. This is so that when someone searches something close to what you are looking for, the advert is displayed and they are most likely to see it and click through to your website.
If you advertise on a news website, you would ideally want your adverts shown on articles that have some relation to your offering as those interested in such an article would be the most likely to click through.
Entities involved in PPC Adverting
In PPC processes there are generally three entities involved. That is (i) you, the product or service seller, (ii) the PPC advertiser who has the traffic that you want, and (iii) the visitor. Sometimes there is an intermediary between you and the advertiser who facilitates the interaction between you and the advertiser. For simplicity lets work with the basic three as they are always present in any transaction.
How does PPC really work?
You contact an advertiser, advertiser creates the advert, advertiser displays the ads, the visitor clicks on the ad, visitor arrives on your landing page and you take it from there and interact with the user and hopefully sell them something.
If you wanted to get started today …
The process you need to follow to get started is quite simple and straight forward for common advertisers like Google. It is also generally the same flow with other providers give or take a step or two.
- You create an account with the advertiser, like Google Adwords and provide the keywords for the ad
- The advertiser allocates your budget usually in tranches of clicks or amount to be paid. For example a tranch will be for a 100, 500 or 1000 clicks. This may correspond to say $50, $250, $450 depending on the pricing structure. There may be a reducing sliding scale where it gets cheaper with volume.
- Advertiser creates a small advert comprising of text or image or mix of both.
- Advertiser associates the ad with keywords that you provided
- Advertiser determines how much to pay each time someone clicks the ad
- A user visits the search engine like Google and enters keywords to look for what they want.
- The search engine finds the matching ads and places them on the results page of the user’s search
- If the visitor sees the advert and clicks on it, they are led to your website
- A charge for the click is then deducted from the account as payment for the click.
What do you need in place before placing a PPC ad?
There are a number of key things that you need before placing an ad if you want to have value for your money;
- a website with some content of what you offer or what you are selling
- a landing page if you desire to make maximum use of arriving traffic
- relevant keywords researched and ready
- a compelling PPC ad
- create an account, for example a Google Adwords account.
So in answer to the question what is PPC advertising all about, it is just a method of pulling traffic to your web offering by mean of paying for every click made on an advert you placed at a popular traffic provider’s website.
Kindly leave comments and questions below on the question of PPC marketing and advertising techniques.