What Is PPC & How Does PPC Work?

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First time hearing about PPC? Have you been wondering about how PPC works? Are you are looking for ways to land your first traffic and sales for a new business? Have you been wondering about how you can be paid through advertisements? do you want to know how to run adds and get paid for them?. Maybe you are considering ways to grow your brand’s presence online. All your questions about PPC will be answered here, In this guide, we will help you understand what PPC is, how it works, how you can use it to drive success for your business.

What Is PPC & How Does PPC Work?

What is PPC?

Since search engines are all about relevancy algorithms, the advertisers are basically auctioning on keywords. Search engine advertisement in itself is a form of PPC marketing. PPC is an acronym for Pay-Per-Click, it is basically where advertisers literally pay the advertisement platforms only when their ad is clicked.

Pay per click is an advertising scheme employed by online advertisers and businesses to boost their ad campaigns. Instead of impressions, which has been the usual advertisement model for years (many online advertising platforms still use it), PPC can be a great way to market your business and reach new customers.

Simply put, PPC works by combining several factors that are pre-decided by an ad network. Online advertisers must curate their advertisement plan according to the relevance of their target audience. It is an auction system where each advertiser bids for a position on a search engine. 

Importance of PPC

The common PPC platforms allow a spectacular depth of targeting, this means you can serve ads in front of those only who you deem to fit your customer demographic. the use of search engines has become the number one way people look for suppliers of both products and services.

PPC can help you get in front of these people with a precise level of targeting that traditional advertising doesn’t allow for. PPC offers you an opportunity to reach your audience at a time when they are looking for a business like yours while gaining data insights to help you improve the productivity of the channel over time.

Hence, when there is an active audience looking for what your business offers, there is a chance to make a sale. Paid advertising is a very big business, and it is disclosed that Alphabet (Google) alone earns more than $162 billion per year through their ad platforms.

Essential Benefits of PPC

  • It is an online digital marketing channel that businesses use to drive traffic from search engines.
  • It works on actionable results, though little confusing at first for those just getting started with the channel.
  • Useful for generating sales and creating leads.
  • pay-per-click is used to create an online presence for your brand.
  • Businesses use PPC to drive traffic, sales, or inquiries from their target audience.

How Does PPC Work?

PPC advertising is a broad category of marketing channel that covers a wide variety of different ad platforms. They mostly fit into two categories being Google Ads and Bing Ads. 

Google PPC Ads

Formally known as Google AdWords is by far the most popular PPC and it offers wealth of opportunities any business, so as to drive success from the channel. In a PPC campaign, you pay Google the amount you wish to have them list ads for your site at the top and right of the organic search listings. However, when anyone clicks on your ad, you pay the current Cost Per Click (CPC) from your budget. Once your entire budget has been exhausted, Google stops to run your ads until you reload your fund.

Different types of Google Ads

  • Search Ads
  • Shopping Ads
  • Display Ads
  • Video Ads
  • Gmail Ads

Search Ads

Google Search Ads are perhaps the most commonly recognized form of pay-per-click advertisements. There are displayed above or beside Google search results in response to what a user searches. So, if someone searches for the product or service you offer, your ad can be the first thing they see.

Meanwhile, through the PPC model, you only have to pay when anyone clicks on the ad. To set up a Search Ad campaign, you simply have to write your ad copy, select the keywords you want to be shown for and then set your daily budget.

Of course, getting the most out of your ads isn’t quite so simple. A thorough management process and fine tuning is in place to make sure you are getting the best feasible return on investment (ROI) for your ad.

Microsoft Advertising (Bing Ads)

Microsoft Advertising (Bing Ads)

Bing Ads also known as Microsoft Advertising, just as Google Ads, allows you run ads on Bing. As well as on Yahoo and AOL. From a management point of view, the two platforms are very similar. The main difference is the market size and possible reach.

It was estimated that, as of June 2020, Google’s market share in the US was 87.71%, Bing 6.99%, and Yahoo 3.44%.  That said, Bing Ads can still drive traffic and conversions, and the ROI is often cited as being better than Google Ads, although at a lower volume.

Other Ad Networks

There are other ad networks aside Google Ads and Bing Ads that you can consider to drive growth with PPC. They include:

  • Bidvertiser
  • RevContent
  • AdRoll
  • Facebook Ads
  • BuySellAds
  • Advertise.com
  • AdBlade
  • LinkedIn Ads
  • Twitter Ads
  • Amazon Ads AdRecover

Facebook & Instagram Ads

There are a wide variety of ads available on Facebook and its associated platforms. Though they vary in destination (places the ad will be shown) and in format (from single images to videos) You can also define your audience based on basic statistics, environment, interest, and more.

To achieve the best out of your Facebook Ads, there is need to install a Facebook Pixel. This allows the platform to collect data about visitors who visit your own site. Having difficulty in defining your audience? The Lookalike Audience feature permits you to evaluate the commonalities of your current audience (which are visitors to your website) and aim for similar users with your Facebook Ads.

More on Facebook Ads

Another great use of the Pixel is Retargeting Ads. Retargeting allows you to follow users after they’ve visited your website with targeted ads related to your products or services. If your business is focused directly to consumers, Facebook is going to get you the best return on your Social Advertising investment

Finally, you can Boost Posts with the click of a button! This process quickly modifies a basic Facebook post on your business page into an advertisement that will be shown to the audience of your choosing. As with other Facebook Ads, you can also customize your budget, placement, and timeline.

LinkedIn Ads

However, if you’re in the B2B camp, then it’s worth considering the use of LinkedIn Advertising. Although you have the option to use text-only advertisements on LinkedIn, ads with images drive 20% more clicks. Hence, it makes the most sense to do both!

Then, you can choose your audience, segmentation by company, job title, skills, demographics, etc. These pay-per-click ads can be positioned at the side or bottom of a user’s LinkedIn homepage, or in the user’s inbox. A second paid advertising option within LinkedIn is Sponsored Content. 

This content shows up in the midst of your audience’s news feed, which can significantly improve and increase engagement. As with the text and display ads, you can select your target audience. Then, you simply have to set your bid, which is done either by choosing cost-per-click (CPC) or cost-per-thousand-impressions (CPM) basis.

Why Use PPC?

Are you considering PPC as a marketing channel for your business? Here are benefits and and reasons you should invest your budget here and not elsewhere.

Receiving Clicks can be Very Quick

Once your ad account has been set up and you created an ad, you will have to wait for few hours for the platform to approve. Once your ads are live, so long as you are qualified to appear in the auction and your bid is high enough, you can start appearing (and receiving clicks so long as the volume is there) very quickly.

Compared to channels such as SEO, PPC allows you to start seeing returns very quickly; and this is absolutely one of the reasons why it is so popular with marketers.

PPC can be Measured and Tracked Easily

PPC can be Measured and Tracked Easily

This is one of the main benefits of PPC over traditional advertising channels. It measures and tracks the returns from the platform. This means that you can use data and insights to successfully refine the productivity and performance of a campaign over time to increase the ROI of the channel.

All popular platforms, like Google Ads and Bing Ads, allow you to track conversions, including order or lead values. They also enable you to see, at a granular level, the ROI of not just of the overall account but specific ad groups and keywords, too.

You Control Fully When Ads Run and How Much You Pay

Need to temporarily pause advertising during a busy period? You want to only run ads when you need to generate fresh leads? You also have full control over how much you spend each day (or month) and how much you pay per click. In comparison to other channels where you don’t same level of ability to manage a channel cost and budget so fluidly.

This is perfect through PPC, as you are in full control of when your ads run (including the time of day and day of the week) and you can comfortably turn ads on and off as you wish. Although a strong-performing campaign is always recommended to be used to drive wider business development and not be used as a stop-start tactic.

Perfect Target for Customers

PPC allows you to target your exact customer based on your data. It even allows you to regulate bids based on devices used, the time of day, and the location. And this is unlike traditional advertising. If you know your customer and how they search, you can use these insights to minimize wasted advertising spend.

Multiple Ad Formats are Available.

Do you run an eCommerce store? You can use shopping ads to display your products right on the SERPs in prime position. Do you want to convert basket abandoners into conversions? Then make use of display remarketing to server an offer to encourage the expected action.

PPC is made up of a whole range of different ad formats, and these can be used to drive success for distinct businesses and use scenarios. 

We hope this was helpful. let us know by leaving a comment below. Do well to subscribe to our weekly newsletter. thank you!


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