What are PPC (Pay Per Click) Ads?

PPC Ads

Pay-per-click (PPC) might seem like a simple enough concept, but it’s really much more complicated than you might realise.

Sure, PPC lives up to its name. It’s an online advertising method in which you only pay when somebody clicks on your ad.

There’s quite a bit more to it than that, though. You’ll have to familiarise yourself with bidding, keywords, landing pages, budgets, ad copy, and much more if you want to run an effective PPC campaign.

 

The Nitty Gritty Of How Pay-Per-Click Works

PPC exists because digital real estate is valuable.

Look at it this way: if you want to run an ad on a billboard, you’ll have to pay for that spot. Similarly, if you want to run a TV commercial during a popular program, you’ll have to pay for that, too.

The Internet works in much the same way. Some websites offer prime digital real estate. If you want to promote your brand on those sites, you’re going to have to pay somebody.

One of the ways that sites charge for advertising is by impression count. That’s usually measured in terms of per-thousand impressions (often abbreviated CPM, which stands for “cost per thousand impressions”).

If you opt for that advertising model and run your ad on a site like BuzzFeed, you could end up getting charged a fortune even if nobody clicks on your ad. That doesn’t seem right, does it?

Enter PPC, an advertiser-friendly model that gives marketers the option to pay only if somebody clicks on their ads. That’s often the preferred choice.

 

Why Businesses Use PPC Marketing

Why do businesses use PPC? For the same reason that they advertise anywhere else: they view it as a great way to get the word out about what they’re offering.

PPC is just one part of a multi-pronged marketing strategy. It’s rare that a business will use online advertising as the only way to draw traffic to its website.

However, it is effective at doing just that. As a result, many brands rely on it to boost top-line sales. There’s another reason that brands opt for PPC as well: it can land them a top spot on the search results pages.

Search engines like Google and Bing give businesses the opportunity to run an ad that appear at the very top of the results list when people search for a keyword. That’s why many brands view PPC as an SEO shortcut.

 

What Are the Most Popular Types of PPC?

There are countless ad networks that offer PPC. However, some are more popular than others.

At the top of the list is Google AdWords. That’s a PPC option that allows you to run an ad on private websites, in the search results, or both.

Facebook, the most popular social network in the world, also offers PPC advertising. It’s often considered a “go to” option for advertisers who want to promote their products to consumers based on demographics and interests.

 

How Much Does Pay-Per-Click Cost?

Quick answer:

  • You have to pay for each click
  • Some clicks are less than $1 and others could be over $50
  • You also need to pay someone to manage the ads and your website

Thus far, we’ve gone over PPC quite a bit but haven’t yet answered one of the most important questions: how much does it cost?

The answer: it depends.

It depends on several factors: the ad network you’re using, the keywords you’ve chosen, and your own budget. Cost per click varies from ad network to ad network. As you can imagine, cost is dictated by supply and demand.

That’s why an ad with Google generally costs more than ad with Bing (on a per-click basis, anyway). Google is a much more popular search engine. The cost per click will also depend on the keywords you’ve chosen for your ad.

How Long Does PPC Take?

Another question: how long does PPC take to work?

The good news is your ads can be up and running pretty quickly. It usually takes an account manager 1 to 2 days to build an account and launch it.

Building landing pages and funnels can make it take longer. But once you turn on the ads, they are on within a day or so.

How Much Do People Usually Spend?

How much, overall, do marketers usually spend on PPC? That depends on the size of the business and the percentage of their budget that they want to invest in online advertising.

Smaller businesses might spend as little as $300 per month on PPC. Larger businesses, on the other hand, invest as much as $500,000 per month.

In case you’re wondering how Google became a multi-billion dollar company, that’s how.

More Important Information On Pay Per Click Marketing

What is an average PPC budget?

There’s no easy answer here. Budgets will vary widely depending on industry, local vs. global audience, and size, and can be run on as little as $50 to as much as $1,000,000+ per month. To get the best positions in the SERPs, you will need to be willing to invest in pay per click.

How long does pay per click advertising take to see results?

This will vary from campaign to campaign, so don’t lose hope if you don’t see immediate results. It usually takes a few weeks to build an account. Then you need to gather data. In most cases, after 2 to 4 months you will know if pay per click marketing is right for your business (or if your pay per click manager is terrible or not).

What’s a good click-through rate (CTR) for PPC Ads?

A good CTR will vary largely by industry. According to a Wordstream study, the average CTR for PPC ads across all industries is 1.91%.

Dating and personal services see the highest with a 3.4% CTR, followed closely by B2B, Consumer Services, and technology. Legal services, e-commerce, and industrial services tend to see the lowest CTRs.

In general, anything between 2%-5% is considered “good.”


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