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The Basics of PPC

July 7, 2017 - fifteen

For many businesses, PPC can be a daunting form of marketing but, if done correctly, the benefits are clear. Discover the foundations of PPC, and how it can help your business grow:

What is PPC?

Pay-per-click advertising is a digital advertising model in which advertisers pay each time one of their adverts is clicked.

Found across many platforms, search engine advertising is the most popular form of PPC – in particular, Google, through its Google Adwords software. PPC is an immediate form of advertising, allowing you to buy visits to your site instead of waiting for them to be achieved organically.

Pay-per-click can be seen as extremely profitable because it catches users at the end of the purchase funnel – right when they’re ready to convert. Unlike social media and SEO, which put a big focus on visibility and nurturing users to an end goal, PPC advertising is present when that user is searching for a service directly – giving them a higher intent of conversion.

Every time an advert is clicked, the user is sent to the advertiser’s website (and designated landing page) and then the advertiser pays a small fee. The marketing model is preferential to businesses for many reasons including: cash-flow flexibility (you pay only when your advert is clicked and don’t need huge lump sums upfront), the ability to turn it on-and-off, how quickly it can drive traffic to the site, and how easy it is to surface your business at the top of search engines.

Previously in Google, adverts were clearly obvious, in a coloured box at the top of the search results page – but nowadays this is much less clear. Adverts are marked with a small green ‘ad icon’ but are otherwise similar in appearance aesthetically to organic search results – which is good news for advertisers.

Is PPC Right For My Business?

PPC provides a great opportunity to drive traffic to your site and convert users, but there are many times where it may not be the best activity for your marketing goal. These examples include:

  • Lack of search volume. PPC can’t create search volume, it can only capitalise on search demand. If your product or service has a low search volume, raising awareness through Digital PR or other channels would be more effective.
  • Increasing online visibility in the long-term. If your sole purpose is to increase visits to a site, rather than driving consumers to a conversion, then an activity like SEO may be more effective. All PPC traffic is paid for, which can prove a costly way to drive visitors in the long-term.

To find out whether PPC is the right activity for your business, speak to a member of our team today.

What Are the KPI’s?

KPI’s vary by your business and goals but there are a few typical metrics you should be looking out for on each campaign:

  • Click-through-rate. This shows a percentage of how many times your adverts were clicked on. A higher click-through-rate means typically means your adverts are more relevant to the users searching.
  • This measures the amount of times your advert has achieved a designated goals. This can be something like a sale, an enquiry, a form download etc. Typically this is the most valuable KPI to an advertiser.
  • Bounce rate. This shows the percentage of users that visited the landing page and left without taking any other action. This can be a signal that the user didn’t find the information they were looking for or expecting to see when they clicked through. A high bounce rate can be affected by many factors, including website user-experience and page loading time.
  • Advert Ranking. Ad position is the order in which your advert shows on the page. Advertisers typically aim for first or second ad rank. The higher your ad, the more likely it is to be clicked on – studies show that first position adverts have an average click-through-rate of around 7%.
  • Quality Score. This is the rating of your keyword and advert as deemed by Google. Quality score can affect your cost-per-click and ad rank. Numerous factors affect your quality score including, CTR, keyword relevance, landing page quality and historical account performance.

New to PPC? Get Started Today

Speak to our team today to get started with your own Adwords campaign. We can advise you on the best platform for your paid spend, and which campaigns will be most effective for your business goals. Get in touch with our team today.

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