In 2007, research found that an average person sees 5,000 ads daily.
Today, that number would easily double. Or even more.
We see ads on TV, billboards, social media, search engines and listen to them on Spotify
But here’s the thing: How many of these do people really click on?
1 or 2 at max.
That means that most of the money goes to waste for advertisers.
PPC, or pay-per-click, is a solution to that. Advertisers only pay when someone clicks on their ads.
What is an example of PPC? Where can I see PPC ads? How do they help marketers? How can I run a successful PPC ad campaign?
Find answers to all these questions and more in this blog right here. We’ll cover:
- What is PPC?
- PPC terms & definitions
- Benefits of PPC
- Examples of PPC
- How to set up a PPC campaign?
- FAQs about PPC
Let’s dive in.
What is PPC?
PPC is a way for businesses to get their ads in front of relevant audiences and then pay the advertisement platform only based on the number of clicks received on the ads.
Here’s how PPC works:
Step 1: You, as an advertiser, bid on keywords. These keywords should be relevant to your audience and something they look up on the Internet.
Step 2: As expected, your target audience searches that term, and that’s when they are shown your ad.
Even when your ads are shown, you don’t pay anything unless someone clicks on the ad.
People usually think of PPC ads as the ones you see on Google, but that’s not all. PPC ads are also shown on several different platforms, including social media. We will see examples of PPC in detail later.
65% of mid-sized companies run PPC ads today.
Small and medium-sized businesses spend $9,000 to $10,000 monthly on PPC ad campaigns.
PPC ads account for 39% of an advertiser’s budget.
Why? Why do brands and businesses spend so much on PPC? Because of the benefits that it offers. Before we explore all the benefits, let’s understand the basic vocabulary of PPC.
PPC terms & definitions
Here are 10 PPC terms and definitions to help you understand the concept better.
1. Click-through rate (CTR)
The click-through rate is the percentage of people who click through your ad and reach your landing page.
CTR = Number of people who clicked the ad / Number of people who saw the ad (impressions)
The higher the CTR, the better your ad is, as more people click on it.
2. Cost per click (CPC)
As the name suggests, cost per click is the amount that advertisers pay every time someone clicks on their ad.
In Google Ads, advertisers can manually select the CPC they are willing to pay or select a total budget and let the automatic bidding system decide their CPC.
3. Impressions
Impressions refer to the number of times an ad is displayed. While more impressions are generally good, it is also essential that your ads get clicked when they are displayed.
4. Quality score
Search engines evaluate ads and landing pages based on quality and relevance. A better quality score means getting better ad placements and paying less.
5. Ad rank
Google (and other search engines) do not display just one ad on search engine result pages (SERPs). There are usually 3 ads at the top of the page. Ad rank is used to determine an ad’s position on SERPs.
The ad rank is determined based on the bid amount, quality score, and ad extensions.
6. Conversion rate
When you run an ad, you don’t just want people to click the ad, come to your website, and leave later. You want them to perform some action.
You might want them to sign up for your newsletter, download an eBook, book a demo, or simply make a purchase. No matter what you want them to do, the percentage of users who complete the desired action after clicking on the ad makes up the conversion rate.
7. Ad extensions
Who said PPC ads have to be plain, simple, or dull?
You can make your ads enjoyable with additional information or features. This extra information includes your phone number, location, or links to specific pages.
Ad extensions provide additional encouragement to users to click on your ad.
8. Keyword match types
If you sell cakes in California and are running your ad, you’d want your ad to show up for all keywords,, such as birthday cake, anniversary cake, etc.
But if you sell a specific type of coffee bean, you’d not want your ad to show generic keywords, would you?
You can make that selection using Keyword Match Types. They specify how closely a keyword in a PPC campaign must match a user’s search query to trigger the ad.
Common match types include broad match, phrase match, exact match, and broad match modifier.
9. Bid strategy
Bid strategy decides how much money to spend on getting people to click on your ad. You can do this manually or let it get selected automatically.
There are different ways to set your bid strategy: you can focus on getting more clicks, getting more people to do what you want after clicking (like buying something), or making sure you’re getting the most value out of what you spend on ads.
10. Campaign budget
That’s the maximum amount of money an advertiser will spend on a PPC campaign. The budget is always mentioned in terms of a specific period, such as a day, week, or month.
Having a campaign budget helps control costs and prevents overspending.
Next, let’s explore the key benefits of PPC below.
Benefits of PPC
The top benefits of PPC ads include:
1. Immediate visibility
Generally, it takes anywhere between 3 to 6 months to rank for any keyword. Again, there’s no guarantee. You still may not rank after doing everything.
However, with PPC ads, you can appear at the top of search engine results pages (SERPs) almost instantly. Your ad will show at the top of SERPs for the selected keywords when your campaign is launched.
Even with display and social media ads, your ads go up almost instantly. This gives you instant visibility and access to your audience’s attention.
2. Targeted reach
When brands go viral on social media, their biggest concern is not reaching the right people. With millions of likes, they are upset because the post didn’t reach the right audience. It also happens with SEO. You target a keyword but also accidentally rank for unrelated terms. You get volumes of traffic but no real outcome.
Such problems don’t arise with PPC ads. You can target your audience and choose who sees your ads. This targeting can be based on location, demographics, interests, or device types.
3. Measurable Results
When payment is based on clicks, you can rest assured that the reporting will be robust. All pay-per-click platforms come with detailed analytics and reporting tools. For example, you have Google and Bing Ads dashboards. Also, social media PPC ads can be tracked using the platform’s analytical dashboard.
These dashboards help advertisers track key metrics. You can see details such as:
- Impressions
- Clicks
- Conversions
- ROI
4. Flexible Budgeting
Most people shy away from PPC because they think it is expensive. However, it is only PPC that lets you set your own budget. You can’t ask an SEO agency to charge you a certain amount based on your budget. You’d have to pay what it takes.
But with PPC, you have complete control. You can clearly specify your daily and monthly ad spend. This flexibility lets businesses of all sizes leverage online ads.
5. Highly customizable
With PPC campaigns, you get complete control of your ad. From the ad copy to the target audience, you can customize everything. You can also use bidding strategies and ad extensions to ensure your campaigns represent your brand.
This customization boosts effectiveness and relevance.
With this, you are now equipped to understand the examples of PPC.
Examples of PPC
When we say PPC, most people think of paid ads that appear at the top of search engines. However, there are many different types of pay-per-click ads.
Below, we discuss the 8 types of PPC ads and their examples.
1. Search engine ads
These are the most popular types of PPC ads. They are text-based ads displayed on the top of the SERPs. They show up when users search for specific keywords or phrases.
Google Ads (formerly Google AdWords) is the most popular platform for search engine ads, followed by Bing Ads.
Example of PPC (Google Ads):
Example of PPC (Bing Ads):
While Google has ruled the search market, Bing is quickly gaining ground. You can reach about 63 million people with Bing Ads. These are the people who are not reachable by Google Ads.
So, it is important to consider your audience and both platforms to ensure that you select the right PPC channel.
2. Display ads
While search engine PPC ads are text-only, other types of ads are also available. These display ads include images, videos, animation, and even interactive elements.
You can find display ads on websites, mobile apps, and social media platforms.
Google Display Network is the most popular display advertising option.
Here’s a display ad example of PPC on the Forbes homepage:
See how the ad features images and a button instead of text and a URL.
Display ads can also be of different types. One example is the banner ad shown above. Then, there can be Interstitial Ads. These ads are full-screen ads shown while you move from one screen to another. They can also be shown while the page is loading.
You see above an example of Interstitial Ads on a mobile app. The video ads are linked to in-game benefits. This makes them hard to ignore, and you stand a better chance of gaining your audience’s attention.
3. Social media ads
As the name suggests, these ads appear on social media platforms.
They can be shown on platforms like Facebook, Instagram, Twitter, LinkedIn, Pinterest, Snapchat, and TikTok. There are several format options available in social media ds, like:
- Image ads,
For example, see Slack’s PPC ad on Facebook
- Video ads,
Grammarly’s video ad on Instagram is a good example of PPC:
- Carousel ads,
A good example of PPC ads on social media in the form of a carousel is VMWare’s ad on LinkedIn:
You can run PPC ads on social media channels that your audience uses the most. Also, select the ad format, based on what your audience prefers the most.
4. Remarketing/Retargeting ads
You are remarketing or retargeting ads to target users who have previously engaged with you. This engagement could be in the form of visiting your website or liking your post on social media. However, they didn’t complete the desired action.
With remarketing ads, users are reminded of your products or services.
Below is an example of a PPC ad by Nike. In this ad, they retarget users who have seen some products on their site before via a display ad.
Remarketing PPC ads can also show up on social media. Take this Airbnb ad on Facebook, for example. It shows Airbnbs in a location that the user has searched for before.
5. Google Shopping ads
Google Shopping ads, also called Product Listing Ads (PLA), are a unique type of PPC ad for e-commerce businesses. These ads include product images, prices, and other relevant information.
These ads are displayed above any other paid or organic search results.
See the example of PPC in the form of Google Shopping Ads for ECCO below:
Nike, Adidas, and Puma dominate the footwear market. Organically beating them is hard. ECCO – a Danish brand – used Google Shopping Ads to grab the top spot on SERPs.
6. Video ads
YouTube is the second biggest search engine platform after Google. Even otherwise, video is gaining popularity. Instead of reading long blocks of text, people prefer video content.
That’s why video PPC ads are also becoming popular. These ads are run before, during, and after video content. You can see video ads on platforms like YouTube, Facebook, Instagram, etc.
They can be skippable or non-skippable and vary in length and format.
Burger King’s 14-second video ad on YouTube is an excellent example of PPC ads.
The ad shows two guys in a Burger King complaining about YouTube ads. One guy mentions how annoying it must be for you (the viewer) to sit through ads before watching a video. Then, a Burger King deal pops up at the bottom. The other guy tries to dismiss it, calling it a “stupid incredible deal.”
The touch of humor makes the ad appealing and click-worthy.
7. Native Ads
Most people consider ads a menace. A disruption in their organic experience. That’s where native PPC ads come in.
These ads blend with the platform’s content where they appear, making them less disruptive and more engaging. A native ad matches the look and feel of the platform where it is displayed.
A noteworthy example of a native PPC ad is Dell’s sponsored post on The New York Times.
8. Gmail Sponsored Ads
The average Gmail user spends 28 minutes in their inbox daily, making it a great place to advertise.
Gmail Sponsored Promotions (GSP) is a type of advertising offered by Google that allows advertisers to reach potential customers directly within Gmail.
These ads appear in the Promotions tab of users’ Gmail inboxes alongside other promotional emails.
Example of a Gmail Sponsored on mobile.
Each type of PPC ad discussed above has its own advantages. You should select the right type depending on your target audience, budget, and goals.
How to set up a PPC campaign?
The examples of PPC and successful campaigns clearly show how effective it can be. It can drive traffic to your website, capture leads, and even make sales.
With all that said and done, it is time for you to build a PPC campaign for your business.
How to build a PPC campaign?
Step 1: Define your goals and select a platform/format
Step 2: Write clear, concise ad copy (and get high-quality images and videos, if needed).
Step 3: Target users based on demographics, interests, and online behavior.
Step 4: Decide your budget.
Tip: Make sure your landing page – the page where people will land after clicking on your ad – is proper. It should load fast, offer a seamless user experience, and encourage conversions.
Are you new to PPC? Don’t want to explore and experiment? Consider partnering with a PPC agency. They can help you with:
- In-depth strategy development
- Campaign setup and management
- Data analysis and optimization
RetainIQ is one such paid ad platform that you can use. With RetainIQ, you can level up your PPC catalog ads like never before.
With RetainIQ, advertisers have seen:
- 37% increase in Return on Ad Spend (ROAS)
- 1.27% average increase in CTR
- 20x scaled creative output
Click here to book a demo for the marketing automation platform.
FAQs
What are PPC best practices?
PPC is a highly complicated channel of digital marketing. Some PPC best practices to help you succeed include:
- Select the right keywords on which you want your ads to show
- Keep your PPC ad copy short, sweet, and engaging (Pro Tip: Talk like your audience)
- Make sure your landing page is optimized for driving conversions
- Don’t expect magic in pennies. Set a realistic PPC campaign budget.
- PPC is not a set-it-and-forget-it strategy. So, make sure you have experts to monitor and adjust campaigns as needed.
How much does PPC cost?
The cost of PPC varies. It depends on factors such as:
- The platform used for PPC ads
- The industry competitiveness,
- The keyword demand and
- Your budget.
For example, every $1 spent on Google Ads yields $2 in revenue. This means Google Ads have a 100% ROI.
What is the difference between PPC and SEO?
PPC and SEO are two important aspects of digital marketing.
However, they differ from one another. The key differences are highlighted below:
| Factor | Pay-per-click ads | Search Engine Optimization |
| Cost | Paid advertising; cost-per-click basis. | Organic, no direct cost per click |
| Longevity | Visibility ends when the budget is exhausted. | Long-term visibility if properly optimized. |
| Speed | Immediate results on launch. | Takes time to see significant results. |
| Control | Precise control over targeting and budget. | Relies on search engine algorithms |
| Click-through Rate | Higher CTR due to prime ad placement. | CTR improves as rankings rise over time. |
Which is the best channel for PPC?
The best PPC channel varies from business to business. Some brands have seen great results with Google Ads, while others swear by social media ads.
The key to finding the best PPC channel is knowing where your audience is most active and what ads they engage with the most. A marketing agency can help you identify the best PPC channel based on your needs and budget.