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Posted On 19-Sep-2023

What is pay-per-click in digital marketing?

Posted by OMX Digital Pvt. Ltd.

Viewed 7.41 min read

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What is pay-per-click in digital marketing?

A common online advertising strategy used in digital marketing is pay-per-click (PPC). Advertisers use this technique and are charged a fee each time one of their ads is clicked. Instead of seeking to "earn" those visits naturally through search engine optimisation (SEO) or other strategies, PPC advertising allows you to purchase visitors to your website.

Internet marketers who use pay-per-click, often known as PPC, are charged a fee each time one of their ads is clicked. In other words, you only have to pay for advertising if your ad is really clicked. In essence, it's a way of 'purchasing' internet visitors in addition to those who come to your site naturally.

Search engine advertising, which lets businesses pay for ad placement in sponsored links on search engines, is one of the most well-liked types of PPC. When a customer performs a keyword search pertaining to their product or service, this works. If we bid on the keyword "Google Shopping Management," for instance, our ad might appear at the top of the Google results page.

PPC advertising can be utilised to increase visibility and profitability. Google Shopping, which we specialise in, is an example.

The standard PPC process is as follows:

  1. Ad Campaign Setup: On platforms like Google Ads (formerly known as Google AdWords), Bing Ads, Facebook Ads, or other advertising networks, advertisers generate ads and set up campaigns.
  2. Keyword Selection: In search engine PPC, advertisers choose pertinent keywords or phrases that cause their ads to appear when consumers enter those terms in the search bar. Targeting choices in social media PPC may include demographic data, interests, and behaviours.
  3. Bid Auction: An auction is used to choose which adverts are displayed when a person searches or fulfils the requirements for social media targeting. The auction takes into account elements such as bid quantity, ad quality, and relevancy.
  4. Ad Display: The user will see an advertiser's ad if their bid wins the auction and it is determined to be relevant.
  5. Cost Per Click (CPC): Only when an ad is clicked does the advertiser receive payment. The bid and how competitive the keywords or targeting options are affect the cost per click.

PPC advertising has a number of benefits when used in the context of digital marketing:

  • Immediate Visibility: The moment your campaign is launched, PPC advertising may start to show up at the top of search engine results and on different websites. With this immediate exposure, you may easily find your intended audience.
  • Highly Targeted Advertising: You can target particular demographics, geographic regions, user behaviours, and keywords using PPC platforms. The possibility of conversions is increased by this precise targeting, which guarantees that your advertising are seen to the most pertinent audience.

  • Cost Control: Setting a daily or monthly spending cap gives you control over your PPC budget. Your costs can be successfully managed because you only pay when someone clicks on your advertisement.

  • Measurable Results: PPC platforms offer comprehensive analytics and reporting tools that let you monitor the effectiveness of your ads. To assist you in making data-driven decisions, you may evaluate important metrics like click-through rate (CTR), conversion rate, and return on investment (ROI).

  • Adaptability: Real-time alterations and optimisation are possible for PPC campaigns. You may immediately make the appropriate adjustments and provide more budget to particular keywords or ad creatives if you see that they are doing better than others.

  • Brand Exposure:  Users see your advertisements even if they don't click on them. This exposure may increase consumer familiarity and brand awareness, which may result in conversions or sales in the future.

  • Competitive Advantage: By bidding on terms that your rivals are using, you could rank above them in search engine results and get an advantage over them in the online market.

  • Ad Extensions: The majority of PPC platforms allow you to add extra information to your ads, such as phone numbers, address information, and connections to particular web pages. Your ad's exposure and relevance are improved by these additions.

  • Geo-Targeting: For companies that have physical locations or certain geographic target markets, PPC enables you to accurately target consumers in those areas, boosting the likelihood that local buyers will find your company.

  • Flexible Ad Formats: Text ads, display ads, video ads, and shopping ads are just a few of the several ad forms that PPC advertising offers. You can select the format that best satisfies your marketing objectives thanks to this versatility.

  • Remarketing Opportunities:  Remarketing capabilities are frequently offered by PPC platforms, enabling you to re-engage website visitors who have previously visited but did not convert. Higher conversion rates and ROI may result from this.

  • Mobile Optimization: PPC campaigns can be tailored to mobile consumers in light of the rising popularity of mobile devices, ensuring that your advertising appear as intended on tablets and smartphones.

  •  A/B Testing:  PPC campaigns let you conduct A/B tests to identify the most successful ad variants. Over time, this recurrent testing procedure may result in improved ad performance.

  • Scalability: PPC campaigns may be scaled up or down depending on your budget and company objectives, making it appropriate for companies of all sizes.

  • Data-Driven Decision-Making: PPC offers useful information and insights that can guide the allocation of resources in your overall digital marketing plan.

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