What Is PPC And How It Works
To understand what PPC is and how it works, let’s consider the Google PPC example. If you enter a query in the search bar and click on the “find” button, you will be presented with a page where the first and last few items of the search results will be marked “Advertising” (usually, these are 4 positions above the organic search results, as well as three below). Also, you probably came across videos on YouTube in which banners were set up above the timeline. This also includes a video marked “Announcement”, which is sometimes shown before the video. How does a search engine or service determine what to show to a particular user? This is due to the analysis of a person’s online activities, including his search keywords. If you are looking for certain goods or services on the Internet, for some time after that you will be shown ads that match your requests. The principle by which contextual advertising in search engines is arranged is encrypted in the abbreviation: PPC literally translates as “pay per click” (for the clicks of an interested user through your link). In this case, the price depends on the position in which the ad will be located. The position is determined as a result of the auction. In addition, the average cost per click on Google Ads will vary depending on the business area (level of competition in a niche, prevalence, demand for a product or service).
Thus, PPC (pay per click) is an online advertising model. While SEO is a lengthy process of building organic traffic, PPC provides a shortcut to quick but temporary results. As mentioned, typically, such ads are placed on search engines, where they will be displayed only for relevant queries. For example, a search for “website hosting” displays such advertisements. Ads appear at the top of the first page of results. Sometimes additional ads appear below, after organic search results.
When the ad is clicked, the user is redirected to the site and the advertiser pays a commission to the search engine. While there are many factors that help to achieve success in PPC, it is important to focus on the following factors during your PPC advertising campaigns:
- The CPC bid (CPC bid) is the amount that the advertiser is willing to pay for each click.
- The Quality score considers several criteria – from ad relevance to expected CTR.
- The ad ranking is calculated as follows: CPC bid * Quality Score. Of course, Google uses a more complex formula, but this basic equation helps to understand the general concept.
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Benefits of PPC
Besides the ability to increase sales quickly, PPC provides other benefits. Typically, this marketing channel is chosen for the following reasons:
- Easy to learn and measure. For example, mastering SEO can take from one to three months, and after the launch, the first results will appear only after a few months. It’s much easier with PPC. Most PPC platforms offer built-in metrics tracking. Access to real-time data allows you to improve your ad in a timely manner and increase its performance.
- Provides more control. PPC allows you to control the ad launch period. For example, it can be displayed at specific times of the day or even on specific days of the week. You can turn off ads completely if necessary. With PPC, it’s also easy to control budget spending: the advertiser decides for himself how much he is willing to spend per day, month, or per click.
- You can target a specific audience. Unlike SEO, contextual advertising can be promoted to a specific category of customers. Ads can be displayed only on certain devices, during a given period of the day, and even only in certain cities.
Why is PPC Important?
Pay Per Click (PPC) | 429 advertising is an important factor to consider. Businesses can drive leads to their websites by running targeted pay-per-click campaigns. What’s more, many business owners underestimate the power and benefits of pay-per-click advertising and therefore fail to take advantage of a range of opportunities for their companies. Below are some of the important benefits of PPC for your small business. Pay Per Click advertising is the most suitable option for all types of businesses. It helps to increase the ROI (return on investment) of the business. By using this effective marketing method, you will surely be able to find leads at the right time for your business. Optimizing and maintaining PPC campaigns is important to optimize conversion-driven traffic.