Consumers today consult search engines before making a purchase decision. This has led to businesses leveraging various digital marketing techniques to drive more traffic. Almost 96% of marketers in Australia invest in Pay-Per-Click (PPC) marketing, with over 80% of companies using Google Ads. However, it is still being determined what percentage of these marketers are adept at paid advertising. PPC marketing makes an advertiser stand out despite the concept being challenging. Therefore, one must learn more about PPC and what it does for your business. Here is a breakdown of PPC marketing, how it works, and the top platforms to use.

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what is ppc

What is PPC?

Pay-Per-Click (PPC) is a digital advertising model where brands and businesses run ads on advertising platforms and pay a fee when users click the ads. Platforms like Google Ads use ad campaigns to direct users to advertisers’ landing pages.

With proper targeting, a PPC campaign can earn quality leads to create a positive user journey that boosts the Return on Investment (ROI) of your PPC advertisement. PPC ads feature on top of the search engine result pages and have the ‘ad’ banner before the advertiser’s URL.

Types of PPC Ads

1. Search Ads

PPC search ads are widespread and appear on top of the organic Search Engine Results Page (SERPs) when a user types a specific keyword or phrase. These text-based ads are relevant to the search query and have a higher click-through rate. The advertiser pays for each ad click depending on the Cost-Per-Click (CPC). A Google ads agency uses search ads to promote products and services by driving traffic to relevant web pages.

2. Display Ads

These image-based ads appear on advertising platforms within the Google Display Network. Display ads use images, video, animations and other visually appealing elements to get more clicks. A Google display advertising agency uses them to boost brand awareness, display products and services, and drive website traffic.

Instead of CPC, display ads are paid for on a cost-per-impression or Cost-Per-Thousand-Impressions (CPM) model. Therefore, the advertiser only pays after the ads get the specified number of impressions.

3. Video Ads

Video ads appear across the Google Display Network, social media platforms, and SERPs. They are popular on YouTube and pop up before, during, or after a video. A professional Google ads agency creates interactive and engaging ads with calls-to-action and links for users to make enquiries or purchases.

4. Remarketing (retargeting)

Remarketing is an advertising strategy where businesses and brands contact users who visit their websites without taking action. Retargeting ads appear on other websites and apps to remind users about their previous visits and convince them to return. They are either search, display, social media, or display ads paid for on a CPM or CPC basis. Since remarketing ads precisely target users, they are ideal for boosting conversions and sales.

5. Shopping Ads

A shopping ad is displayed when a user searches for a product on a search or shopping engine. These ads are visual and contain product images, prices, and specifications. The business may include details like colour, size and dimensions for precise targeting.

types of ppc

How does PPC Work?

After learning the definition of PPC, it begs the question, what is PPC in marketing? PPC in marketing allows businesses to bid on specific words and phrases that trigger their ads to appear on SERPs. The advertiser’s ad appears on the first pages when users input keywords and phrases in their search query. Anytime a user clicks on the ad, the publisher charges the advertiser.

A Google display advertising agency uses keyword search tools to identify relevant keywords and their average CPC. After finding keywords with the right volume, the agency creates ads and includes the appropriate keywords to trigger them.

Create campaigns targeting specific audiences by demographics, locations and interests and set a maximum bid for the keywords you are targeting. Google AdWords has a complex algorithm that filters out the relevant ads to show in a specific order. The algorithm considers the following:

  • Ad bid amount
  • Ad relevance to the keyword
  • Ad Quality
  • Advertiser’s PPC strategy

PPC Models

Pay-per-click advertising rates are based on two models.

1. Flat-Rate Model

A flat-rate PPC model implies that each click has a fixed price you pay the publisher. Different areas of the website are subject to their own PPC rates, and publishers are willing to negotiate prices. You pay a lower fixed rate if you enter a long-term/high-value contract with the publisher or PPC Company.

2. Bid-Based Model

In a bid-based PPC model, advertisers place bids with the maximum price they pay for advertisements. Publishers use automated tools that run bid auctions upon a user triggering the ad spot. The highest-ranking ad wins the auction regardless of the money paid. The ranking relies entirely on the quality of content you offer as an advertiser. Therefore, the content must be relevant for the bid to succeed.

Top PPC Advertising Platforms

Numerous platforms offer PPC advertising services, including Google, Microsoft and Facebook. These platforms display their ads uniquely; we explore them in detail with this PPC guide.

1. Google Ads

Google is the biggest search engine globally, and its Google Ads platform reigns over other search engines in paid advertising. Advertisers bid for ad displays, video displays, and service/product listings. Marketers choose where their ads appear in the Google Display Network on mobile apps, videos or associated non-search websites.
Since the search engine giant processes over 99,000 search queries every second, your target audience has a higher chance of interacting with your ads.

2. YouTube Ads

YouTube is part of the Google Display Network and mainly promotes video ad content. Therefore, YouTube ads take multiple formats, including;

  • Skippable ads

These PPC ads run for up to 60 seconds, and users can skip them after five seconds when watching a YouTube video.

  • Non-Skippable Ads

These short-span ads run for 5 to 15 seconds, and users cannot skip them. The YouTube videos play immediately after displaying these ads.

  • Bumper Ads

Bumper ads are short, and users cannot skip them since they last under six seconds.

  • Sponsored Cards

Sponsored cards are like image ads appearing on the video with information about the advertiser’s products and services.
Advertisers purchase YouTube ads on a Cost-Per-View (CPV) or CPC basis and pay for each view or click on their ad.

3. Microsoft Advertising

Microsoft Advertising, formerly Bing Ads, is a PPC platform for businesses to run ads on the Bing search engine and Microsoft Advertising Network. The Microsoft Advertising Network combines partner websites and apps that allow Microsoft ads. Microsoft Advertising displays search, shopping, product, video, and display ads. Purchase these ads based on a PPC or pay-per-impression model.

4. Facebook Ads

Facebook is the leading social media marketing platform with over a billion users. Advertisers use audience interests and behaviour to promote their products and services on Facebook. These ads appear on the user’s news feed and stories and are broken down as follows:

  • Image and Video ads

These ad campaigns contain headlines to a video or image with a call-to-action button or link.

  • Carousel ads

Carousel ads combine multiple images and videos in one ad to maximise ad clicks and boost brand awareness. Users scroll through the carousel to click on a specific image or video and learn more about the product or service.

  • Slideshow ads

Slideshow ads use various still images to create a video-like campaign displaying multiple types of products and include a CTA at the end.

  • Instant Experience ads

Businesses and brands use instant experience ads to create an immersive, in-app full-screen viewing. These ads contain appealing visuals prompting the user to click and view more products and services from the advertiser.

ppc platforms

Importance of PPC Advertising

PPC ads should be considered an asset instead of marketing expenses. Most advertisers compare PPC to SEO, but the former offers more benefits, like;

1. Quick Results

Approval of PPC ads takes only a few hours after setting up a Google Ads account and creating ad campaigns. You instantly gain maximum exposure if you have a higher bid and are eligible for an ad auction. This helps your business stand out compared to SEO, which takes time to deliver results. Use multiple ad formats to increase brand visibility among your target audience.

2. Increased Reach to Target Audience

PPC advertising targets users based on interest, demographics and location, making it easier to reach target audiences. Advertisers also target social media users based on behaviour to feature campaigns in high-conversion ad groups. Use customer insights to control your advertising budget and get more value for money.

3. Measurable

PPC platforms like Google Ads provide advertisers with measurable results through tracking conversions, ROI, and other Key Performance Indicators (KPIs) at a granular level. Measure the return on investment for specific keywords and ad groups instead of the entire Google Ad account. Such data and insights help improve ad campaign efficiency and performance to boost ROI.

4. Cost-Effective

PPC advertising is more cost-effective because advertisers only pay for the number of clicks on their ads. Therefore, you control when and where your ads are displayed by turning them on and off. However, using high-performing campaigns to increase brand awareness is crucial instead of a stop-start strategy. Compared to traditional advertising channels, you control your bids and how much you spend daily and monthly to maintain a fluid budget.

5. Multiple Ad Formats

PPC uses multiple ad formats that benefit specific industries, businesses and brands. For example, e-commerce stores combine display and shopping ads to present their products at the right spot on the SERPs. Remarketing ads also allow the store to reach and convert users who abandon their carts during a purchase.

How does PPC Work

How do you build a PPC Campaign?

Now you know the basics of PPC models and the right platforms to use, we will look at ways to create a quality PPC campaign for Google Ads. Working with a PPC company is advisable to ensure your marketing campaigns remain effective.

1. Set Parameters

Setting parameters ensures that PPC campaigns are in line with your business goals. Consider what you expect from paid ads and their contribution to achieving specific goals. Think about brand awareness, website traffic, sales, and how much you pay to reach your objectives. When setting parameters, the ads should include the following:

• Your target audience
• Campaign themes
• Ways to measure success
• Type of campaigns

2. Create Goals and Goal Metrics

Measuring campaign goals shows the effectiveness of your PPC ad expenditure. Goal metrics are unique from campaign metrics, and this PPC guide highlights ways to measure specific PPC goals.

  • Brand Awareness

Display ads are great for building brand awareness, and surveys, direct traffic and social engagement are ideal for measuring this goal.

  • Lead Generation

Each ad group must have a separate landing page for users to follow up on the paid ads quickly. The proper goal metrics for lead generation would be tracking lead conversions in Google Ads via UTM parameters or tracking pixels.

  • Sales

If your PPC campaign aims to increase sales, track product and service sales based on traffic from paid ads.

3. Choose Campaign Type

After identifying your target audience, you will need to find ways to advertise to them. There are multiple PPC advertising options, and your choice depends on where you want to reach your target market. However, the best campaigns combine various ad types for a result driven PPC campaign.

4. Keyword Research

Each ad group must contain targeted keywords for search engines to determine where your ad features. Add one to five relevant keywords per ad group to increase the quality score. In addition, the ads should reflect the theme of the ad group. Although getting everything right on the first try is impossible, the best PPC company assists brands in curating the best campaigns.

5. Set Up Google Analytics and Tracking

Google Analytics gives insight into your website performance, user interaction and content relevance to the target audience. A display advertising agency in Adelaide uses this data to improve your PPC marketing.

Conclusion

Whether starting a new business or expanding an existing one, PPC guarantees the much-needed boost to stay ahead of the competition. If not, you will always be the first on the SERPs since PPC advertising is profitable and with benefits that other digital marketing techniques lack. Working with a PPC agency in Adelaide takes a shorter time for you to start since you have the proper guidance. All the information in this guide will help you improve your website ranking and boost traffic and conversions.

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