Understanding PPC Advertising

In this article we’ll give a basic rundown of pay per click advertising, how it works, and how it can benefit your business.

Although there are a multitude of options available for online marketing nowadays, when used properly, PPC offers tremendous opportunity to drive traffic to your website and ultimately increase your online profits.

PPC in a nutshell

PPC is an advertising method for bringing targeted traffic to your website. It revolves around CPC (cost per click) ads, and is what you pay every time someone clicks on your ad and is subsequently taken to your website or landing page.Hand on Mouse

The majority of advertising you see on search engines and also social networks are run on a PPC system. The way that these ads drive targeted traffic is by only displaying to people who’ve shown an interest in your type of ad. This is done by selecting search terms that you’d like to have your ads appear for when they’re searched. For example, if you’re advertising Tennis raquets, you would target keywords such as ‘tennis racquets’, ‘buy tennis raquet’, ‘tennis racquet online’ etc.

PPC ads appear outside the organic listing, generally at the top or to the right on most search networks including Google. Many businesses run dual PPC/SEO campaigns in order to build traffic from both paid (ppc) and non-paid (organic) search results.

Click IconThe main benefits of PPC are:

– Your ad is listed within hours

– Via bidding, you have control of your ad positioning

– You select the keywords that your ad will appear for

– It’s up to you what you pay for your ads

How keyword targeting works

You the ad creator have total control over which keywords will trigger your ad. This creates the opportunity for your ads to appear directly beside natural search results for the keywords that you’ve chosen. Using the above example, if you’ve chosen ‘tennis raquets’ as a keyword, when someone types ‘tennis racquets’ into a search engine your ad will appear alongside or above the natural results depending on the network you’re advertising on and how much you’ve bid.

The inherent value of this targeting is that you’re able to put your ads directly in front of people who are already searching for your product/service, hence are more likely interested in purchasing or at least entering your sales funnel.

Ad positioning

The exact positioning of your ad will depend on the level of your bid. You decide what you think a click is worth, and input this value in the ad network. This value will then be put up against advertisers bidding for the same keywords, and the highest bidders get preference of position. It’s important to note that big is not the sole consideration of ad networks, many of the big players such as google reward ads with which are more relevant to the search query and or link to high quality landing pages.

As with all advertising mediums, the big dogs tend to muscle out the smaller guys with large budgets. However, this doesn’t mean those with lower level budgets can’t be successful with PPC, they just need to be more savvy with their spending. The best way to do this is by micro targeting keywords, bidding individually for these, and then building customized landing pages for particular keyword groups.

Check back next month for our article on how to compete with the big dogs in PPC.

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