What is PPC in Digital Marketing, and How to Use It?
Updated on Nov 30, 2022 | 7 min read | 5.5k views
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Updated on Nov 30, 2022 | 7 min read | 5.5k views
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PPC, or pay-per-click advertising, is one of the conventional digital marketing methods that involves advertisers paying a small amount every time an advertisement is clicked. In layman’s terms, the advertisement owner only pays a fee if a viewer clicks on the ad.
This is a simple method that is essentially a way of paying for visits of viewers to your web application and driving organic visits to it. PPCs are most commonly used in search engine advertising enabling advertisers to pay for ad placement in sponsored links of any search engine.
If a viewer looks for a certain keyword specific to a business’s offerings, the advertisement might appear at the top of the search engine’s result page. Although approximately 45% of most small and medium businesses do some form of digital marketing, PPC is still a concept that most elude.
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Any marketer must acquire the skill of PPC in digital marketing or at least have a basic understanding of the concept.
1. Search Engine Marketing (SEM): The main goal of all these advertising forms is to rank for a specific target word, a keyword. This target word is searched for in multiple ways, and it refers to any form of digital marketing done on common search engines like Google, Bing, Yahoo, etc. SEM is an umbrella term composed of search engine advertising (SEO) and paid advertising that solely depends on the target word, aka keyword. It is important to know that PPCs are also on social media platforms.
2. Cost-per-click (CPC): It refers to the fee paid by the advertiser for each click. It poses as a bid in an auction determining where the advertisement will be placed, where a higher bid is equal to better advertisement placement. The fee paid is determined by the formula:
CPC= (Competitor’s Ad Rank/ Current Quality Score)+0.01
Where: Ad rank= Highest Bid x Quality Score
Quality Score: Determined by your clickthrough rate on the search engine or social media platform.
3. Cost per Mile (CPM): Commonly known as cost per thousand, it is mainly used for paid display and social ads for a thousand impressions.
4. Keywords: These are target words that each advertisement within your group of ads contains. These words play a vital role as the search engines are guided by these words or queries containing these words that, in turn, determine where your ad is placed alongside in the SERPs. Based on the performance of these target keywords, a micro CPC can be set specifically within those ads.
5. Landing page: It forms an integral part of the paid advertising strategy as a spot for users to end up once they click on your advertisement. Irrespective of being a dedicated web page or homepage, it is vital to follow the best practices for maximizing conversions using the landing page as the foundation.
6. Campaign: This is the initial step of setting up your PPC ad. Campaigns work on a key message or theme that should be communicated to the target when the ad is placed and viewed on the search engine or social media platform.
There are no specific steps to build your ad campaign. However, there are a few elements that you might have to pay extra attention to while creating an effective paid search marketing strategy:
Without initial parameters, the ad might risk being untargeted or ineffective. The idea of these ads is to put your business strategy into context. This is why it is important to understand and pay attention to the details while setting up a campaign. The ads must generally encompass:
Generally defined by organizations, PPC goals often include:
Apart from knowing where to advertise, it is crucial to know how to advertise. The type of campaign used is based on the needs of the organization. Here are some of the most common types:
The selection of keywords is a tedious yet essential task as it determines ad placement on the search engine. Ensure that the selected keywords are streamlined with the theme chosen.
This is a free bonus and could immensely help you. This is a special tool that provides insights into the website’s performance and its interactions. This data can also be used beyond the use of PPCs.
Google Analytics tool and tracking can assist your PPC campaign in managing its effectiveness and influence. Regular activity of the organization’s account is one of the best ways to predict success. Continuous analysis of your performance and adjustments helps keep your campaigns effective. Here are a few things that can help manage your pay-per-click advertising strategies:
Are you worried about the lack of awareness of your brand? Are you trying to build credibility?
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