If you’re a marketer, you’ve heard the word ‘PPC’. In fact, you’ve probably heard it even if you aren’t in marketing. But can you honestly, hand-on-heart, say that you understand what it means?
Even if you cannot, this beginners guide to PPC is here to help you. We will cover everything from definitions, key terms, how it works, platforms, ad types, benefits, and more.
Understanding PPC
Let’s kick off this beginner’s guide to PPC by understanding the basics.
What is PPC?
PPC stands for pay-per-click. It’s a way to advertise online. With PPC, your business puts ads on websites or on search engines like Google. You only pay when someone clicks on your ad.
Next, let us understand the key PPC terms and definitions that you will be bombarded with in the industry.
PPC terms and definitions
- SERP
SERP stands for Search Engine Results Page. Simply put, it is the search results page that Google puts together for a user search query. Sometimes there are ads at the top of the SERP, labeled “sponsored”. These are PPC ads.
- SEM
SEM stands for Search Engine Marketing. It’s a way to get your website seen at the top of search results. There are two ways to do this: pay for ads or improve your website over time. This beginner’s guide to PPC focuses on the paid ads part. For instance, this image illustrates the concept perfectly.
- CPC
CPC stands for Cost-Per-Click. It’s the amount you pay for each person who clicks on your ad online. The more people click, the more you might pay, but you only pay when someone clicks, not just for your ad to show up on the SERP.
- Quality Score
Quality score is a grade given to your ads by search engines. It rates how relevant your ad and landing page are to the keywords people search for.
Higher scores mean your ad is likely more useful for searchers. This can lead to lower costs per click because search engines want to show helpful ads.
- Ad Rank/Advert Rank
For the same keyword, there can be multiple ads. Ad rank determines the position of your ad on a search engine results page.
It’s a score based on two things: your maximum bid per click and your ad’s quality rating. It’s calculated using the following formula: [Quality Score x Ad Spend].
A higher ad rank means your ad is more likely to be displayed higher and more prominently in SERP.
- Campaign
A campaign in PPC is a group of ads that share a common goal. For instance, you might create a separate ad program to promote each of your products or services.
This lets you tailor your ads and keywords to specific audiences and goals. As a result, you get more control over your PPC strategy.
- CPM
CPM stands for Cost-Per-Mille, with “Mille” being Latin for “thousand.” In the context of online advertising, CPM refers to the cost you incur for every one thousand impressions your ad receives.
- CTR
This stands for “Click Through Rate”. It is the number of people who actually click your ad after looking at it.
You can derive your CTR by dividing your total number of impressions per ad, by total clicks per ad.
- Landing Page
A landing page in PPC is the specific webpage someone arrives at after clicking on your ad. It’s like a dedicated storefront designed to turn visitors into customers.
- Ad Group
An ad group in PPC acts like a sub-category within your larger, broader ad campaign. So what’s the difference? An advert campaign is a broad theme, like promoting your entire clothing store.
An advert group would then focus on a specific category within that theme, such as frocks. Grouping allows you to choose relevant keywords for each product group.
- Keywords
These are the specific words and phrases people type into search engines. These keywords trigger your ads to appear on search results pages. It’s like having a shop window on a busy street.
- Ad Text
Ad text in PPC is the short message displayed in your advertisements. It’s like a mini billboard that needs to grab attention and convince people to click. The ad text must be clear, concise, and persuasive to achieve a high click-through rate.
Those were the mission-critical terms you needed to know in this beginner’s guide to PPC. Of course, there are a whole lot more, but you’ll get by just fine with knowing just these ones.
Oh, also, a lot of people wonder if social media ads are considered PPC. Short answer: yes. Long answer: read below.
Do ads on social media also fall under PPC?
If a social media platform offers ads, they will definitely offer PPC models. So, yes; the ads on social media platforms absolutely fall under PPC (pay-per-click).
Think of Facebook, Instagram, Twitter, and LinkedIn – you set a budget, and you’re charged based on clicks.
Here’s the thing: social media PPC brings three unique benefits, which no other platform can.
- Social media platforms know a lot about their users. This lets you target your ads to people based on location, interests, job titles, you name it.
- With images and videos, social media ads grab attention. It works much better than the little nugget of text in SERP ads.
- People interact with businesses on social media, which can boost your brand’s profile.
Now that this beginner’s guide to PPC has covered the basic terminology, your next question is undoubtedly ‘where can I use PPC marketing?’.
PPC platforms for paid marketing
The key to success lies in selecting the right platform that aligns with your goals, budget, and audience. There are several options available to you, but here are the most popular ones.
Google Ads
Google Ads reigns supreme as the most popular PPC platform. Mainly it has the ability to target users actively searching for products or services like yours. Its keyword auction system allows you to bid on relevant search terms. In the auction, the cost is determined by the competitiveness of the keyword. The more businesses bidding for the same keyword, the higher the cost-per-click (CPC) tends to be.
Google Ads excels at capturing search intent. This makes it an ideal choice for businesses with a larger budget and a goal of broad reach. Its comprehensive targeting options, including geographic, demographic, and device-specific settings, ensure your ads are displayed to the most relevant audiences.
This is what a Google ads report looks like, with a breakdown.
Bing Ads
While not as widely used as Google Ads, Bing Ads is the budget alternative for businesses looking to experiment with PPC. One of its strengths lies in targeting brand-specific keywords. This allows you to capture users searching specifically for your brand or your products.
Bing Ads can is not just an attractive option for cost-conscious businesses, but can also work well in tandem with Google Ads campaigns. With lower competition and potentially lower CPCs, it doesn’t break the bank.
Here is what your Bing ads console looks like. The latest feature to be added here is integration with Facebook ads.
Social Media Ads
Meta is the company that owns Whatsapp, Facebook, Instagram, and Snapchat. Their advertising platform stands out for its ability to hyper-target audiences. Meta Advantage Automation Ad Suite allows you to target users based on demographic, interest, behavior, and even lookalike data. With so many options, you have the ability to be hyper-specific in your audience targeting.
All that falls flat though. The real distinguishing feature is the visual nature of these ads. Reason: image and video ads are proven to be attention-grabbers in the dynamic social media feed. This makes it an ideal platform for businesses where brand awareness and engagement are as important as driving clicks and conversions.
Here is what your Meta ads platform homepage looks like.
And with the platforms and basics out of the way, this beginner’s guide to PPC now looks at the different types of ads that you can run.
PPC ad types
Broadly speaking, there are four types of PPC ad campaigns. Each has its own merits and demerits, the main factor being cost.
Search ads
Search ads are the text-based advertisements displayed on search engine results pages (SERPs). They appear when users search for terms related to your product or service.
These ads typically include a headline, a description, and a URL that directs users to your landing page.
In essence, search ads act like mini billboards on a busy highway. In other words, they grab attention from people actively looking for what you offer.
Display ads
Display ad campaigns focus on promoting your product or service using visuals on websites and apps. These are not triggered by specific searches, but rather by a user’s browsing habits and interests.
They include eye-catching images, banners, or even short videos appearing on websites the user visits.
They aim to grab your attention based on what interests you online. Display ads are a great way to reach a broad audience who might be interested in what you offer.
Social ads
Social media campaigns in PPC target users directly on social media platforms like Facebook or Instagram. These campaigns allow you to create highly targeted ads based on a user’s profile, interests, and online behavior.
The result? You can promote your product or service to people most likely to be interested, increasing the chance of clicks and engagement with your ads.
Remarketing ads
Remarketing ad campaigns, also known as retargeting campaigns, are a clever way to stay in front of people who have already shown interest in your business.
Have you ever browsed a website for a new pair of shoes, then started seeing ads for those same shoes on other websites you visit? That’s the power of remarketing/
These campaigns use cookies or similar tracking tools to follow a user’s online activity and then display ads related to the products or services they previously looked at.
It’s a gentle reminder that you’re there, potentially nudging them to come back and complete a purchase.
Now you know the different types of ads, this beginner’s guide to PPC will outline some of the benefits of PPC advertising.
The benefits of PPC
- PPC lets you set your budget and only pay when people click your ads. This ensures you get value for your advertising dollars, especially if your ads lead to conversions (sales, leads, etc.).
- Unlike SEO, which can take months to see results, PPC ads can rocket you to the top of search results instantly. This is crucial for startups or businesses needing a quick boost.
- PPC platforms offer granular control. You can easily tweak keywords, ad placements, budgets, and run different ad versions to see what performs best. This lets you optimize your campaigns for maximum efficiency.
- PPC lets you target ads based on keywords people search for, their past online behavior, or even demographics like location or interests. In other words, PPC lets you skip cold audiences and get those ready to buy.
- Search engine algorithm updates can wreak havoc on your organic traffic, but PPC is more stable. Your ad placement depends on your bids, not algorithm changes.
- Good marketers love results, but great marketers love data. With the right data, you can make even the worst possible ad campaign a success. It is all about targeting the right audience, seeing which ads are being clicked, which are not, and refining accordingly.
- If a person keeps seeing your ads over time, they begin to subconsciously trust your brand. In the end, this makes people more likely to consider your business when they need your product or service somewhere in the future.
The bottom line: PPC advertising is a fast but temporary way of reaching the right audience at the right time. It should, and can, never replace SEO completely. However, PPC campaigns can greatly supplement and bolster your overall marketing strategy.
So, is PPC management the be-all end-all of marketing? Is it the holy grail? Absolutely… not.
PPC vs. other advertisement channels
PPC advertising has many platforms to reach new audiences. However, it’s important to consider all options. Email marketing, for example, allows you to build stronger, more personalized relationships.
The same is true for personalized SMS marketing. Both of them could potentially drive more sales from a familiar audience. Ask yourself, is it easier and cheaper to get new customers, or to woo old ones. Therefore, if you have a strong existing customer base, you could increase sales by a combination of Email, SMS, as compared to PPC marketing.
On the other hand, if you’re looking for a 100% free option to boost visibility, content marketing is the way to go.
Remember, just using one strategy (PPC, email marketing, content marketing) is not enough, a mix of them is recommended. Evaluating different strategies can help you find the best fit for your goals and budget.
How to manage your PPC campaigns?
Here’s a straightforward guide on how to build a PPC campaign, what metrics to track, and which tools to use.
Build your PPC campaign
To start a PPC campaign the most important step is to choose the right platform. A good start is to go with a tried and tested one such as Google Ads or Bing Ads. Around this time, also set a clear goal for your campaign. This could be anything from increasing website visits and getting more calls to promoting a new product. The more specific your goal, the better you can plan on how to get there. Here are the basic steps.
Define Your Target Audience
Understand who your customers are, what they need, and how they search online. Knowing this helps you target the correct audience, which in turn helps in attracting visitors. Not just attracting visitors actually, but attracting visitors who are genuinely interested in your products or services.
Select Keywords
Choose words or phrases related to your product or service that people are searching for. This process, though tedious, is fundamental to campaign success. The reason? These are the terms your potential customers are using in their searches. Effective keywords increase your ad’s chances of being shown to the right audience.
Set a Budget
Decide how much you want to spend daily or monthly. PPC platforms usually work with a bidding system. In this you set how much you’re willing to pay each time someone clicks on your ad. Setting a budget controls your advertising costs, and optimizes your expenditure for the best ROI. It prevents overspending and allows you to better allocate marketing resources.
Create Compelling Ads
Write clear and engaging ad text that will convince people to click on your ad. Compelling ads are critical because they are your first point of interaction with potential customers. Interesting ads always do significantly better in terms of click-through rate.
The reason is simple: people are more likely to click on something that interests them. More interested views equals more potential conversions. That said, remember that there is a thin line between attention-grabbing ads and clickbait.
Launch Your Campaign
After setting everything up, launch your campaign and monitor how it performs. Don’t forget to actually monitor your campaign — PPC is not a “set it and forget it” approach. This ongoing evaluation helps in fine-tuning your strategies, optimizing your ads, and improving effectiveness.
Once your PPC campaign is running, you need to track its performance to understand what’s working and what’s not.
Track your campaign metrics
Here are the five pillar metrics to keep an eye on.
- Clicks
The number of times your ads are clicked. Monitoring clicks helps you understand how appealing your ad is to your audience. More clicks often mean your ad is relevant and engaging.
- Impressions
How often your ad is shown. Knowing the number of impressions gives you an idea of your ad’s reach. It helps you gauge if your keywords and ads are well-targeted to appear in relevant searches.
- Click-Through Rate (CTR)
This shows the percentage of times people saw your ad and clicked on it. A higher CTR indicates that your ad is effective. CTR helps you assess the effectiveness of your ad copy and targeting. A higher CTR means your ad is successful in capturing interest.
- Cost Per Click (CPC)
The average cost you pay each time someone clicks on your ad. Tracking CPC is crucial for managing your budget. It lets you evaluate the cost-effectiveness of your campaign and adjust your bidding strategy to maximize return on investment.
- Conversion Rate
The percentage of clicks that result in a desired action, like a purchase or sign-up. This metric is vital for understanding the actual effectiveness of your campaign in driving meaningful actions, not just traffic. It shows how well your ads are converting interest into results.
Tracking these metrics will help you understand if you are meeting your goals and how you can improve your campaigns.
- Use tools and software to manage your PPC campaigns
Several tools can help you manage your PPC campaigns more efficiently. Here are four of our favorites.
- Google Ads
Offers tools for creating and managing your campaigns right within the platform.
Google Ads is the primary tool for most PPC campaigns, as it provides direct access to manage ad placements on Google Search and Google Display Network.
It allows for real-time campaign adjustments and access to detailed analytics to optimize performance.
- SEMrush
A comprehensive tool that helps with keyword research and competitive analysis. SEMrush is invaluable for identifying the best keywords to target and understanding what strategies your competitors are using. This information can help you craft more effective campaigns and find new opportunities.
- HubSpot
Integrates with Google Ads and helps you track your PPC campaign results alongside other marketing data.
HubSpot is beneficial for tracking the overall effectiveness of your marketing efforts, not just PPC.
By integrating PPC data with other marketing metrics, HubSpot helps provide an overview of your marketing strategy’s impact.
- WordStream
If you’re managing multiple campaigns across different platforms, you’ll thank us for this one.
With it, you get tools that help campaign management across various platforms. The great news is that it supports the “big three” ad platforms: Google, Bing, and Facebook.
Its features can save time and improve campaign performance by providing recommendations and automation options.
Utilizing these tools can greatly enhance your ability to monitor, analyze, and optimize your PPC campaigns. The result? Better targeting, efficient spending, and improved returns on investment.
Using these tools can greatly enhance your ability to monitor, analyze, and optimize your PPC campaigns. The result? Better targeting, efficient spending, and improved returns on investment.
PPC best practices
We’ll end this beginner’s guide to PPC by talking about PPC best practices.
Keyword Research
Invest time in finding the right keywords. Focus on those that are highly relevant to your offerings and have a clear intent.
Proper keyword research ensures that your ads appear in relevant searches. This increases the efficiency of your spending and maximizes the chances of conversions.
Ad Relevance
Make sure your ads are directly relevant to the keywords you bid on. Why do this? Ad relevance is key to achieving a higher Quality Score on platforms like Google Ads.
A higher score can lead to lower costs per click and better ad placement. In the end, this ends up making your campaigns more competitive and cost-effective.
Landing Pages
Tailor your landing pages specifically to your PPC ads. Customized landing pages that directly reflect the ad lead to better UX and higher conversions.
They ensure that visitors find exactly what they expect after clicking on your ad.
This helps in turning them into customers. In other words, don’t clickbait your users.
Test and Optimize
Continuously test different elements of your campaigns, from the ads and keywords to landing pages. Regular testing and optimization allow you to discover the most effective approaches.
Also, these allow you to eliminate elements that do not perform well.
This ongoing improvement process helps adapt to user and market changes.
Budget Management
Monitor spending closely and adjust bids to ensure you are investing in keywords that convert while staying within budget. Why do this? Effective budget management prevents overspending and allows you to allocate more resources to high-performing keywords and ads. It ensures you get the best possible return on each dollar spent.
Performance Tracking
The last of our PPC best practices is to look back. What do we mean? Regularly review performance metrics like click-through rate, cost per click, and conversion rate. Tracking these metrics provides insights into the effectiveness of your campaigns. It helps in making informed decisions, enabling you to optimize your strategies and maximize results based on actual data.
As you can see, running a successful PPC campaign involves many steps. You have to get every step right to reap the promised benefits.
At RetainIQ, we’ve achieved great results for brands across various industries, with Facebook ads. If you believe Facebook ads can deliver better results for your business, you’re right, and we have the processes and technology to make it happen.
Contact us to learn how we can optimize your Facebook ad campaigns for the best performance. Book a meeting with us today.