23 Mar What is PPC (pay-per-click) Advertising and How Does it Work?
As a digital marketing consultant, I get asked a lot about PPC advertising. In this article, I’ll explain what it is, how it works, and why it matters for your business.
Pay-per-click (PPC) advertising is a powerful tool for businesses to reach their target audience and increase website traffic. But what exactly is PPC advertising and how does it work? In this post, we’ll break down the basics of PPC advertising and give you some tips for getting the most out of your PPC campaigns.
PPC advertising is a type of online advertising where advertisers pay each time a user clicks on one of their ads. These ads typically appear on search engine results pages (SERPs) and other websites that participate in ad networks like Google Ads or Bing Ads.
One of the biggest advantages of PPC advertising is that it allows businesses to target specific keywords and audiences. For example, a dentist may want to target people searching for “teeth whitening” in their local area. With PPC advertising, the dentist can create an ad that appears at the top of the search results when someone searches for that keyword.
So how does PPC advertising actually work? Let’s say a user searches for “teeth whitening” and sees an ad for our dentist at the top of the search results. If the user clicks on the ad, the dentist pays a fee to the advertising platform (like Google Ads) for that click.
The amount the dentist pays per click (also known as the cost per click or CPC) can vary depending on a number of factors, including the competitiveness of the keyword and the quality of the ad. Higher-quality ads that are more relevant to the user’s search query can often achieve a higher ad position and a lower CPC.
To create a successful PPC campaign, there are a few key steps to follow:
- Conduct keyword research: Identify the keywords that your target audience is searching for and create ads that are relevant to those keywords.
- Create compelling ad copy: Your ad should grab the user’s attention and clearly communicate the value proposition of your product or service.
- Optimize your landing pages: Make sure that the page users land on after clicking your ad is relevant to their search query and encourages them to take action (like filling out a form or making a purchase).
- Continuously monitor and optimize: Track the performance of your ads and make adjustments to improve their effectiveness over time.
According to a study by WordStream, the average CPC across all industries is $2.69 on the Google Ads platform. However, the cost can vary widely depending on the industry and the competitiveness of the keywords being targeted.
In addition to Google Ads and Bing Ads, there are also other platforms that offer PPC advertising, such as social media networks like Facebook and LinkedIn. These platforms allow businesses to target users based on their interests and demographics, providing another avenue for reaching potential customers.
It’s important to note that while PPC advertising can be a valuable tool for businesses, it’s not a silver bullet. PPC campaigns require ongoing monitoring and optimization to ensure that they are cost-effective and deliver a positive return on investment (ROI).
One way to maximize the effectiveness of your PPC campaigns is to use them in conjunction with other digital marketing tactics, such as search engine optimization (SEO) and content marketing. By creating a comprehensive digital marketing strategy, you can ensure that your business is reaching potential customers at every stage of the buying journey.
PPC advertising is a powerful tool for businesses looking to increase website traffic and reach their target audience. By understanding the basics of how it works and following best practices for creating and optimizing campaigns, businesses can maximize their return on investment and drive real results.