What Is Pay Per Click? A Starter Guide

December 31, 2021

There is a phenomenon referred to as ad blindness. It is a "condition" that occurs when internet users subconsciously ignore ads. Apparently, 92% of ads won't be noticed at all because of it.

A possible explanation for this phenomenon is that the ads aren't targeted. Let me explain what that means.

If a user searches for "What is pay per click" and they come across an ad talking about "The best shopping list app", it is quite likely that they won't even notice it. But if they come across an ad talking about "How to increase the effectiveness of your marketing campaign", they are more likely to notice, and even click, it.

That said, the most effective way to advertise is that which reaches people that are already interested in what you have to offer. One such method is using pay-per-click ads.

What Is Pay Per Click Advertising?

Alternatively known as cost per click (CPC), Pay Per Click (PPC) is an internet marketing model in which advertisers are charged a small fee every time their ad is clicked. Unlike other online marketing models that "earn" their website traffic, PPC is essentially a way of buying traffic.

There are various types of PPC ads, including search ads, display ads, and local search ads. These ads are published on search engines, mobile apps, web pages, and social media platforms. Search engines are the most popular option.

Some of the most popular platforms for PPC are Google Ads, Microsoft Ads, Facebook Ads, and Twitter Ads.

How Does Pay Per Click Work?

The PPC model uses keywords to determine how relevant an ad is to a viewer. For example, in search engines, ads appear only when the keywords used in the search are related to the product or service being advertised. 

For your ad to show up higher than other ads, you need to infuse it with the appropriate keywords. There are several keyword search tools you can use to find the most relevant keywords for your product or service.

A system known as Ad Auction determines the most relevant ad. It uses a combination of factors such as quality of the ad, bid amount, ad extension, and keywords among others in the line of landing page experience.

When a user submits a search query, an algorithm calculates the best ad to show based on the Ad Auction and determines how they will be displayed.

How Effective Are Pay per Click Advertisements?

PPC ads are quite effective. Their effectiveness comes from the fact that instead of presenting random ads for something internet users do not need, they present ads for products or services they are showing an interest in. Users that click these ads have a high likelihood of converting.

Take a look at these statistics that show the effectiveness of PPC ads:

  1. The rate of return of PPC ads is 200%. That means that for every dollar you spend on PPC ads, you make two.
  2. Traffic that comes from paid ads is 50% more likely to convert compared to organic results.
  3. 79% of marketers claim that PPC is vital to their business.
  4. 65% of internet users click on PPC advertisements when looking to purchase something. The remaining 35% click on organic search results.
  5. Over 40% of clicks go to the first three results of the search engine results page. So the higher above the competing advertisers you show up, the more traffic you will receive.
  6. 9.21% of Facebook ads and 3.46% of Google ads convert.

Why Should You Use PPC?

Going by the above statistics, it is crystal clear why you should use PPC. Apart from being effective as the statistics above indicate, there are several compelling benefits of using PPC advertising. They include:

1. Provides important metrics

PPC allows you to measure and track the performance of each ad. It provides you with metrics such as clicks, conversions, and impressions that show how your ad is performing, and what effect it has on revenue. A common practice is to create many variations of the same ad, gauging their performance, then settling for the variation with the highest performing.

2. Saves on costs

Instead of paying money for your ad to be shown without a guarantee of the results, the PPC advertising model allows you to pay only for the results. The higher the cost, the more the traffic. This is why PPC has such a high ROI.

3. Allows targeted advertising

You can focus your ads to your target audience. The algorithm that determines which ads to show ensures only your target audience sees the ad. This allows your landing page to have a very high conversion rate.

Run a Successful PPC Ad Campaign

The effectiveness of PPC Ads cannot be overstated. Your ads are shown only to your target audience, and you only pay when they click on them. With a properly-designed landing page, chances of converting them are quite high.

But in order to run a successful PPC ad campaign, you need the help of a professional. It takes too much time to perfect, implement and monitor - time you should spend working on other aspects of your business. Besides, only by working with someone who has the right experience can you achieve your marketing goals.

Let Us Manage Your PPC Efforts 

There is a long list of PPC professionals to rummage through, as well as a whole bunch of tools you can use to get your PPC campaign started. But how do you determine which expert or what tool is right for your business?

Well, you need a trusted company that has proven track record. If you are still searching for one, Cannesis is the answer you're looking for. We are a top PPC agency equipped with the right tools you need. 

Our experts will help you set up PPC campaigns, manage ad spend budget, and tweak ads to attract traffic. They will apply their in-depth knowledge in ad networks, competitor research, keyword discovery, and performance analysis to create ads that are relevant o your target audience. 

Contact us today and let us walk the journey with you to help you create a successful PPC ad campaign.

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