What is Pay Per Click and how does it work?
Pay Per Click (PPC) or Cost Per Click (CPC) is an internet marketing strategy that involves an fixed fee being charged each and every time someone clicks on an ad. An advertiser can pay on a PPC basis to advertise on a website or display ads through a SEARCH ENGINE, utilizing the PAID SEARCH method.
Paid Search marketing on Google Ads allows an advertiser to display text and shopping ads on a Search Engine Results Page (SERP.) The AD RANK or position on the page and PPC price are determined by Quality Score factors such as:
- Bid amount which is determined by the maximum amount agreed to by the advertiser.
- Click Through Rate (CTR), which is calculated by the number of clicks on the ad divided by the number of times the ad is displayed (Impressions.)
- Relevance of Keywords to their particular Ad Groups.
- Relevance, Quality and Performance of the Landing Page where a visitor ends up after clicking on an ad.
- Relevance of of ad text, relating to its uniqueness, benefit to the visitor, and how well it persuades the visitor to respond to an offer.
On the surface, it might appear that paying each time someone clicks on an ad could turn out to be anything but cost-effective. On the contrary, as part of a well thought out plan of action, it could be very productive in generating web traffic and revenue. You have to keep in mind that through Paid Search on a search engine, viewers will only see ad results that generate in response to a query in which the user is specifically seeking the products or services that the advertiser offers. Adding a Negative Keyword, which acts as a filter and eliminates searches that contain certain words, such as “free” for example, will ensure that the ad won’t be shown as a result of irrelevant queries.
Return on Investment (ROI) monitoring is a key factor in PPC success
The Pay Per Click (PPC) marketing model can be effective because costs can be constantly measured, managed and kept under control. Regular updates are an essential part of efficiently utilizing the economic advantage of PPC advertising. Ongoing results can be tracked through an analytic program that collects data and delivers regular updates regarding:
- Number of ad clicks
- Cost of ad clicks
- Actions, or “Conversions”, such as form submissions, sales, live chats and phone calls that contribute value to the business
Return On Investment (ROI) is easily revealed to measure the impact that the ads have in sales income in relation to the cost of doing business through Paid Search. If an ad has proven to be profitable, a business can continue to use it. Conversely, if it appears to be ineffective, that particular trend can be detected in a timely manner to enable the advertiser to further develop and improve it or remove it completely from the ad group.
Infusing PPC advertising into your business model is only one of a number of ways in which Gazelle Interactive can assist to effectively market your products or services. Let us show you how we can help your business thrive. Visit gazelleinteractive.com and allow us to show you the path to a more profitable future.