What is PPC in Digital Marketing?

Ben Tippet
Published July 17, 2024

What is PPC? This is an advertising model where you bid on ad placement in search engine results and only pay when your ad is clicked. It’s instant, strategic visibility for your website and a fundamental of digital marketing. This post breaks down PPC so you can get targeted traffic and budget use without the fluff.

The Pay-Per-Click Basics

PPC stands for pay-per-click. It’s like a digital spotlight for businesses, shining a light on their ads online. Businesses only pay when a customer is interested enough to click on their ad.

Think of you have a lemonade stand and you put up a sign that says, “Hey, try my lemonade!” Every time someone comes over because they saw your sign, you give a little money to the person who let you put the sign up. This is basically how PPC works.

How Does PPC Advertising Work?

When we get into PPC we find it’s all about choosing the right keywords and how much you’re willing to pay per click. Advertisers choose words related to what they’re selling and decide on a price per click. It all happens super fast – search engines use fancy math to figure out which ads to show first based on how good the ad is and how much the advertiser is willing to pay.

At the heart of PPC is the ad auction. It’s like an online bidding war that decides which ads get to sit next to search results. But it’s not just about throwing money around; the quality of your ad and the experience it gives users is super important. So it’s a balance of spending the right amount of money and having an ad that’s too good to ignore and a smooth experience when people click on it.

The best ads are the ones that hit the sweet spot of spending smart and having an ad that’s too good to ignore.

Ad Auctions

Ad auctions are the lifeblood of PPC advertising, where visibility is won or lost. When a search query is entered, the auction fires up, matching the advertiser’s keywords against the search terms. Only the most relevant ads make it through so users see ads that match their intent. Google Ads, the king of PPC platforms, uses Ad Rank to determine the order of the ads, taking into account the bid, ad quality and the expected impact of additional ad formats like extensions. In this competitive landscape, search engine advertising is key to success.

But it’s not just about who’s willing to pay the most. Ad relevance and quality can trump the bid, so you can get better positioning with a lower bid. This system rewards advertisers who focus on creating content that matches user needs, so it’s a win-win for the advertiser and the search engine through the search engine’s sponsored links. Remember Google (and other search engines) want the user to find what they’re looking for so make sure you have a highly optimised landing page to go with your awesome ads.

Ad Rank and Quality Score

Ad Rank and Quality Score are the two most important metrics in PPC. Ad Rank determines where your ad will show on the page and Quality Score is a measure of how relevant and good your ad and landing page is to the user’s search query.

Quality Score acts as a performance gauge for your ad, influencing both its placement and cost per click. The higher your Quality Score, the less you pay per click and the better your ad’s position in search results.

These are calculated by a formula that takes into account the advertiser’s max bid and the ad’s Quality Score. It’s a dynamic process that can lead to big savings and better performance if managed well. With a high Quality Score you can essentially pay less for higher ad positions and get better ROI.

Cost Per Click

Cost per click (CPC) is the variable that can make or break your PPC campaigns. This isn’t set in stone; it changes based on:

  • platform
  • keywords
  • competition
  • ad quality

Advertisers have some control over their CPC by setting a max bid which is the highest amount they’re willing to pay per click. But the actual cost is usually lower and varies per auction based on the Ad Rank needed to beat the competition.

To navigate this landscape you need to know the average CPC in your industry and adjust your bids accordingly, always keeping an eye on the ROI. It’s a delicate balance between spending enough to be competitive and making sure each click contributes to your bottom line. By aligning your bids with conversion rates and profit margins as an advertiser you can optimise your campaigns for maximum efficiency and performance.

PPC Campaign Setup

Building a PPC campaign that speaks to your audience and converts is like building a house; it needs a solid base and the right materials. The base of any PPC campaign is keyword research, the process of finding the terms your target audience is using to find services or products like yours. This base is supported by the careful structuring of campaigns and ad groups so your ads are organised and targeting specific segments of your audience.

And the materials you choose – in this case the ad copy – need to be good and targeted to grab attention and inspire action. It’s not just about being seen; it’s about being remembered and chosen from the crowd. With goals defined, audience understood and the right ad formats and budget allocated the building blocks of a PPC campaign are in place.

Writing Compelling Ad Copy

Ever heard the saying “The pen is mightier than the sword” well in PPC compelling ad copy is your weapon of choice. It’s not just about stringing words together; it’s about crafting a story that encapsulates your unique selling proposition and speaks directly to your audience’s needs and desires. A good PPC ad has a headline that grabs attention, a description that conveys value and a display URL that reassures the user of their destination.

But don’t stuff too many keywords or create copy that doesn’t match the landing page. That will make your ad look spammy or misleading and deter potential customers. Instead focus on clarity and relevance and help the user self qualify by telling them exactly what you offer. That will improve the quality of the clicks and the overall performance of your PPC campaigns.

Ad Groups

In PPC think of ad groups as special forces. Each team has a mission: to reach a specific part of the market with precision. An ad group is a collection of similar keywords and matching ads all pointing to a landing page that delivers on what the ad promised. This allows you to target your message more precisely which can make your campaign work better and be more relevant to the people you want to reach.

Choosing the right spend per click and the bidding strategy is crucial at this stage. By regularly pruning underperforming keywords and focusing on the ones that convert, you can make sure your ad spend is being used effectively. That prevents waste and sharpens the campaign on its best bits.

Keyword Research

The base of any PPC campaign is the keywords. These are not just random words; they are the link between user intent and your ads. Choosing the right keywords means your ads will show up for searches with high intent and relevance and drive potential customers to your doorstep.

Keyword research is:

  • Finding terms with high search volume that are specific to your industry
  • Maximising the chance of driving relevant traffic to your site using relevant keywords and search engine marketing strategies
  • Continuously refining the keyword list to capture new trends and discard the ones that no longer serve a purpose

It’s an ongoing process as the search landscape and user behaviour changes. Advertisers need to stay on top of their keyword research.

This curation process ensures your PPC is always on the latest and greatest search queries.

Google Ads

Google Ads

When it comes to PPC Google Ads is the big dog, with the majority of the market and the most reach. With over 73% of the global search engine market share Google Ads is the platform of choice for advertisers who want to make an impact on Google Search. It’s not just about reach it’s also about tools and sophistication. From Google Analytics to Keyword Planner advertisers have a whole suite of tools at their disposal to build and refine their campaigns.

Google Ads targeting options are as broad as they are precise, based on demographics, keywords, topics and more. Ads can show at the very top of the search results, get the most impressions and clicks and drive massive traffic to your site.

Ad Formats

The Google Ads platform has various ad formats to suit different advertising goals. These are:

  • Search ads: Grab the attention of users who are actively looking for solutions.
  • Shopping ads: Show products in the search results.
  • Responsive search ads: Automatically adjust to fit different ad spaces and optimise performance.
  • Video ads: Engage users with video.
  • App ads: Promote your app to potential users.
  • Display ads: Reach a wide audience with banner ads.
  • Call-only ads: Get users to call your business.
  • Discovery ads: Show your ads in Google Discover feeds.
  • Gmail ads: Reach users through ads in their Gmail inbox.

With these ad formats you can reach potential customers at different stages of their journey.

Choosing the right ad format is a strategic decision, aligned to your campaign goals. Whether you’re driving conversions, increasing brand awareness or promoting app installs Google Ads has the format to achieve your goals. With the ability to run multiple ad formats from one account advertisers can use these different touchpoints to get the most reach and impact.

Set up your Google Ads account

Set up your Google Ads account and you’re in the world of PPC. All you need is an email and password to get started. Creating a campaign is easy:

  1. Enter final URL
  2. Write your ad with headline and description
  3. Set the display path to your site.

Review your campaign to make sure it meets your goals and budget then hit launch. With Google Ads you’re not just advertising you’re opening up new customer opportunities and business growth.

Paid Search vs Paid Social in PPC

The fabric of PPC is made up of two threads: paid search and paid social. Each serves a different purpose in the Digital Marketing Agency , targeting users at different stages of their purchase journey.

Paid search ads, those that show alongside or above organic search results, are targeted based on the keywords entered into search engines. They are the snipers of PPC, targeting users further down the funnel who are ready to take action and buy.

Paid social on the other hand operates in the social media space, showing ads based on demographics, interests and behaviours. This is to cast a wider net, to build brand awareness and engage with users who may not be actively searching but are likely to be interested in what they find. With platforms like Meta for Business advertisers can use detailed targeting options to get their ads in front of the right audience on Facebook, Instagram, Messenger and more.

PPC Campaign Management Tips

Master PPC is an art that requires attention and strategy. It’s not enough to set up a campaign and hope for the best; ongoing management and optimisation is key to getting the most out of it. Advertisers have the control to manage their budgets but it requires smart use of tools and resources (we recommend setting up a separate account to stop ads overspend)

Some tips for managing and optimising your PPC campaign:

  • Regularly monitor and review campaign performance
  • Use additional assets like sitelinks and callouts
  • Adjust bids and budgets based on performance data
  • Test different ad copy and landing pages
  • Run remarketing campaigns to target previous website visitors

By following these tips and being proactive with your PPC campaign you can get more out of it.

Understanding the competition is key. Tools like SpyFu and Semrush give you insight into what your competitors are doing, so you can refine your strategy to get a digital edge. While PPC can get you traffic quickly, it’s important to pair PPC with search engine optimisation that leads to long term results.

Campaign Review and Optimisation

Keep an eye on things like how often people are clicking on your ads and whether your ads and landing pages are hitting the mark with Quality Score. The digital world changes in the blink of an eye and what works today may not work tomorrow. That’s why it’s smart to keep adjusting and improving your campaigns based on how they’re performing. Think of it like a game where the rules change – to win you have to stay sharp and keep tweaking your play.

This continuous optimisation process involves:

  • Refining your keyword lists
  • Adjusting bids to hone in on the best strategies
  • Continuously reviewing performance data
  • Focusing on high performing keywords
  • Killing off those that don’t convert

This is what separates good PPC campaigns from great ones.

Negative Keywords

Negative keywords are like filters for your PPC campaigns, so your ads don’t show up for searches that don’t match your products or services. They help define the boundaries of your campaign and save your budget for searches that have a better chance of converting. By choosing your negative keywords carefully you can refine your targeting, avoid irrelevant ad impressions and focus your spend on the audience most likely to be interested in your products.

Using negative keywords has many benefits:

  • It saves your ad spend
  • It refines your campaign’s focus
  • It targets the most relevant audience
  • It makes your advertising work harder for you
  • It drives quality traffic that converts

This is a simple but effective way to improve your campaign’s targeting and efficiency.

PPC and Other Channels

While PPC is powerful on its own, it’s even more powerful when combined with other channels. Combining PPC with content marketing for example can increase visibility exponentially as paid ads drive traffic to the high quality content that ranks organically on the search engine results pages. This holistic approach can lead to a massive increase in click through rates as ad copy paired with relevant content resonates with informed visitors.

And content marketing can support PPC campaigns in:

  • Creating informational and conversion orientated landing pages
  • Allowing for a balanced budget, investing in both immediate ad driven traffic and long term content visibility
  • Aligning PPC with other marketing efforts to drive brand awareness and conversions.

Choosing the Right PPC Platform for Your Business

Choosing the right PPC platform for your business is a big decision with big consequences. The digital world has many platforms, from the big ones like Google Ads to the niche ones like AdRoll and Taboola. Each platform suits different business needs and audience demographics, some offer broad reach across search and display networks, others offer targeted options for specific user behaviour and interests.

For social media savvy audiences, platforms like LinkedIn Ads and Pinterest Ads offer granular targeting that can be super powerful for reaching specific demographic or professional segments. Niche programmatic ad services like AdRoll focus on retargeting and Taboola specialise in native advertising so you can capture audience attention in different contexts. The key is to know where your audience spends their time and how they interact with ads and choose the platforms that match those insights to get the best results.

Get Better at PPC

To stay ahead you need to keep getting better at PPC. With the industry moving so fast with AI, changes in consumer behaviour and data privacy, keeping up is not just nice to have, it’s necessary. From online courses and certifications to industry news sites full of articles, case studies and expert interviews, there’s plenty of resources at your disposal.

Join the community by engaging with other PPCers on forums, Slack channels and Reddit where you can share your experiences and learn from others’ wins and losses. Follow industry leaders on social media for real time insights and subscribe to newsletters that deliver the latest PPC wisdom to your inbox. With passion and commitment to ongoing learning you can take your PPC campaigns to new heights and achieve amazing results.

Conclusion

In the wild west of the internet Pay-Per-Click marketing is the way for businesses to navigate the digital landscape. With PDE you’re not just launching campaigns you’re going on a journey to “find your digital edge”. From the mechanics of ad auctions to Quality Score and ad copy to choosing the right PPC platform, mastering PPC with PDE is all about precision and flexibility. As we’ve covered the basics of PPC marketing remember the key to success is ongoing learning and optimisation. Let PDE be the wind in your sails to find your digital edge today.

FAQs

What is PPC and how does it work?

PPC (Pay-Per-Click) is an online advertising model where you pay for each ad click. Advertisers bid on keywords and use ad auctions to determine ad position and cost per click.

Why is keyword research important in PPC?

Can I control my spend in PPC advertising?

Yes you can control your spend in PPC advertising by setting a maximum cost per click (CPC) on your ads. This allows for budgeting but the actual CPC will vary based on the ad auction’s competitiveness.

What are the benefits of combining PPC with other marketing channels?

Combining PPC with other marketing channels like content marketing can increase visibility, improve click through rates and lead to better conversion rates and a more rounded marketing strategy. This can get you immediate traffic from ads and long term benefits from organic content.

How do I keep up with PPC trends?

You can keep up with PPC trends by regularly reading industry news, engaging with online communities, attending events, subscribing to newsletters and taking online courses and certifications to stay current.

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