Pay-Per-Click Advertising: What Is PPC How Does It Work?

Pay-Per-Click Advertising: What Is PPC How Does It Work?

Share This Post

Share on facebook
Share on linkedin
Share on twitter
Share on email

Did you know that, according to SmallBizGenius, Google paid ads can cause brand awareness to go up 80%? Additionally, paid advertising has a 200% ROI rate, getting you back $2 for every $1 business owners spend.

Google PPC advertising is the perfect way to promote your small- to medium-sized business in today’s cutting edge digital world. But if you’re not sure how it works and are feeling stressed about getting started, our guide will help get you up on Google with a budget that fits your needs!

What Is Pay-Per-Click Advertising?

PPC advertising, which is short for pay-per-click advertising, is an advertising model used online. What differentiates it from other online advertisements is that the advertiser pays whenever someone clicks on the online ad.

PPC ads come in all shapes and sizes. They are used for everything from search to shopping, video, and Gmail sponsored ads. The most popular type of PPC ad is the one you’ll find at a Google Search; it’s paid with a click! When these sites appear on your screen while performing a search query or clicking through links they’ll say “Ad” next to them so that you know what kind of site this is before proceeding.

These PPC ads show up in Google search results because you’ve searched something related to the product or service of the ad.

If you click on the ad, the business the advertisement is for will be paid for only when that happens. But how do these ads work, exactly?

How Does Pay-Per-Click Advertising Work?

Ever wonder how pay-per-click works? Well, to understand that we first need to know what it is. PPC ads are the easiest way for businesses and individuals alike who have a budget but don’t want or can’t afford an expensive full-page ad in a newspaper or magazine – this system gives them access to customers without making any upfront investment. The only catch: they can be charged per click so you better make sure your message gets across!

The solution works like this. Google and other search engines use what’s called an Ad Auction. This process is automated and determines the validity and relevance of the advertisements that show up in a search.

The Role of Keywords in PPC Advertising

When companies take part in an Ad Auction, it works as a bidding system. You’ll bid on specific terms that would cause your ad to potentially show up in paid Google search results. These terms are called keywords, which you might be familiar with if you’ve used SEO.

Google is one of the most popular search engines in use today. As such, it’s important that advertisers understand how Google determines which ads appear and when they do so for potential customers looking to purchase their product or service. When a customer types in an appropriate keyword related to your business into Google’s search bar, you’ll be given up-to-date information about what happens next with this ad auction process as well as some ways of improving your chances of getting clicked by users who are shopping around online.

Otherwise, someone might click on your ad, find that what they’re looking for isn’t there, and move on. To get the right ROI, you need to do your keywords research and utilize several other strategies.

Strategies for Getting the Right ROI From Google’s PPC Ads

Strategies for getting the right ROI from Google’s PPC ads include researching keywords, creating ad campaigns and groups, setting your budget and your bid, writing ad copy, and launching your campaign. Let’s review each of these in detail.

Research Keywords

To get started, you need to think like your potential customers. Use keyword research tools such as Answer the Public or go on industry forums and social media platforms popular among them to find out what people are talking about most these days. This will help guide which keywords you should focus on for marketing efforts in order to reach a bigger audience that’s more likely interested in what you’re selling!

Additionally, use any strategies you’ve used to optimize your content marketing with keywords.

If your business is a local brick-and-mortar, you can also target your keywords so that your advertisements only show up for people searching in your area.

As you can imagine, this means that there will be fewer companies you’re competing with when the Ad Auction process occurs.

Create Ad Campaigns and Groups

“Create your ad campaign and then divide it into individual groups to target different aspects of the same topic. Grouping together similar ads will make life easier for you as a marketer since all posts in this group need only meet one set of criteria. 

For example, if you sell clothes or clothing accessories like hats or sunglasses, you could have an entire ad campaign dedicated to these products – but within that broader category there might be more specific needs.”

When you’re setting these up, you’ll be using a process called account hierarchy. The lower down you go, you’ll get more specific.

Your ad campaign will have specific campaign settings, such as keywords, ads, and ad groups. Then, your ad groups will contain targeted keywords and ads that all follow a certain theme.

Finally, there will be ads within each group. Each of these ads has a specific ad copy that features specific words.

Set Your Budget and Your Bid

When you’re putting together your ad campaigns and groups, you need to come up with your budget and your bid. To create your budget, you need to decide how much money you plan to spend on the entire ad campaign.

Remember, this budget is going to be used to cover every single one of your ad groups.

In Google Adwords, you can change your bid for each ad group to adjust how much money a potential customer will have to spend on advertising before they’re allowed an advertisement. This amount is the maximum that you are willing to pay per click or conversion depending on what type of PPC ads this campaign features.

Write the Ad Copy

Writing the copy for your ads might happen before or after you’ve come up with your ad campaign and groups. This will depend on your industry. If you’re in one where ad copy matters a lot, you should start from the ad copy and go from there.

Ad copy includes the headline of the ad as well as the description that follows it.

Google PPC ads usually have a limit on how many words you can include in your ad copy: 30 characters maximum for the headline and 90 characters maximum for the description.

If you include an image or video in your advertisement, you’ll upload it when you upload your copy. Make sure you review its design like you would your web design.

Launch Your Campaign

Next, take a final editorial look at your copy and make sure that you’ve used the right targeting strategies for your ads. Once you’ve done this, Google will review them carefully before starting to show up on their network of websites.

But don’t stop there! The work won’t be finished until it’s brought in an ROI (Return On Investment) so stay vigilant when managing or optimizing campaigns by reviewing data regularly about how they’re doing overtime.

After identifying any trends, you can go back to your ads to change anything you need related to targeting, your landing page, or ad copy. This will make your PPC ads more effective than ever.

Need More Tips for Using Google’s PPC Advertising Effectively?

Now that you’ve reviewed this beginner’s guide to Google’s PPC advertising, you might find that you want additional tips. Maybe you want help crafting the best ad copy to get those clicks. Or maybe you want help finding out which keywords are most relevant.

Whatever you need, we can help. At HAYS Digital Marketing Agency, we’re experts in PPC advertising and other types of digital marketing.

We also offer a variety of digital marketing services. To learn more about how we can help you, contact us now.

More To Explore