Are you a Digital Marketer thriving to get traffic and conversions for yourself or your clients? Did you know what is PPC in Digital Marketing? If you didn’t, this article would change your approach to generating traffic, leads, brand awareness, and much more.

PPC is a form of online advertising where advertisers pay to display their ads on search engine results pages (SERPs) and other websites. The advertiser pays the publisher when the ad is clicked, and the publisher earns revenue for each click. This can be done through direct sales with an advertiser or in an auction format. The most common type of PPC is Google AdWords, which has been running since 2000. Because PPC advertisements are targeted, they typically provide a more targeted audience than traditional banner ads.

Advertisers typically use PPC to drive traffic to their websites or landing pages where they can generate leads or sales. Some companies also use PPC advertising as part of a broader strategy to manage their brand’s online reputation and improve the quality of their search engine rankings. While there are numerous reasons to invest in PPC marketing, the main reason ultimately comes down to growth. While PPC is relatively simple to implement, getting it right requires some preparation and planning. Without wasting time, here is everything you need to know about PPC in Digital Marketing.

Key Terms In PPC Marketing

Key Terms In PPC Marketing

Before diving into the details of what PPC is in digital marketing, how it works, its importance, and its advantages, let’s take a look at some important terms used in PPC marketing:

Cost Per Click (CPC)

CPC is the cost per click on your advertisement. It is the amount you pay each time a visitor clicks on your ad. The CPC is calculated by dividing the total cost of your PPC campaign by the number of clicks you received.

Search Engine Marketing (SEM)

It is an online advertising method that uses paid and organic ways to bring in traffic and potential customers. It can be done through search engines, social media platforms, email, video ads, etc. The goal of search engine marketing is to generate more traffic on the website and increase its visibility on the search engine results page.

Ad Rank

Ad Rank is a Google Adwords metric that determines how likely your ad is to appear at the top of the search engine results page. Ad Rank is determined by several factors, which are:

  • The bid
  • Expected click-through rate (CTR)
  • Ad relevance

CTR Ad rank is calculated by dividing the total cost of the ads and their average position by the number of impressions they received. A lower ad rank means your ad has a higher chance of appearing at the top of search engine results pages.

Landing page

A landing page is a page on a website where marketing campaigns send traffic. It’s the first page visitors see when they click on an ad or search engine result. Landing pages typically have one goal: conversion.

Cost Per Mille (CPM)

Cost per mille, also known as cost per thousand impressions (CPM), is a metric that measures the cost of an ad campaign by the number of impressions it generates.

It is calculated as an amount paid to an advertising platform for every 1,000 times the advertisement is shown. For example, if an advertiser pays $5 CPM and their ad gets 10,000 impressions, they will pay $50.

Ad Groups

Ad groups are one of the most important aspects of PPC campaigns. They allow you to organize your ads efficiently and ensure that you are paying for the right keywords.

Ad groups are a set of keywords with one or more ads that share a common theme or purpose, such as “shoes” or “kids’ clothes.” Ad groups can also organize other campaign components, such as targeting methods and ad extensions.

Also Read: The Difference Between E-Marketing And Digital Marketing

How Does PPC Work?

How Does PPC Work?

Before learning how a PPC ad works, let’s look at how to start a PPC ad. Although the advertising looks different on each platform, the basic structure remains the same:

  • Choose a campaign type based on your goal.
  • Refine your targeting and settings (focused audiences, locations, devices, schedule, etc.).
  • Choose your budget as well as your bidding strategy.
  • Enter your destination URL, i.e. the landing page.
  • Create your ad.

PPC ads work by targeting keywords that are relevant to your business. For example, if you are a travel agency, you would want to target keywords such as “family packages” and “cheap hotels.” The ad will appear alongside search results when someone types in those terms. The more people who click on the ad and visit your website, the higher your ranking will be for those keywords in the future.

Advantages Of Using A PPC Campaign

There are several benefits of using a PPC model for your ads campaign. Some of them are:

  • You can quickly reach a larger target audience while earning a good Return On Investment (ROI).
  • You are only charged for the visits you receive. There is a direct relationship between cost and performance when using pay-per-click.
  • You can almost instantly rank at the top of specific SERPs pages and begin earning traffic.
  • Since it targets a specific audience, you can connect with people likely to engage with your brand and purchase your services or products.
  • You have complete control over your budget. PPC models allow you to set a daily maximum budget; in some cases, you can start with as little as $1.

Where Is The PPC Model Used?

In terms of where you want your ads to be shown, PPC is not restricted to a specific location or platform. The following are the most commonly targeted platforms:

Search Engines

Search Engines

Search engine advertising enables you to display advertisements to users based on the keywords they enter into the search bar. The major search engines, such as Google and Bing, use an auction-based PPC model. Search advertising provides two significant benefits to advertisers:

  • It is very effective because it is aimed at users looking to meet a specific need related to your products or services.
  • Ads appear on the first page of the search engine results page (SERP), which means page one on Google. Organically positioning your website can take months of effort, but you can establish your presence at a lower cost with ads.

Social Media Networks

Social Media Networks

You can also run PPC campaigns on social media networks like Facebook and Instagram. These ads are integrated into the user’s social media experience, i.e. on their Facebook or Instagram Feed. 

It might come as a surprise to you, but social networks share the data that you provide them about yourself. Let’s say you search for the best WordPress Hosting on Google. After a while, if you open Facebook, you’ll see ads from different WordPress hosting services in your feed because your information was shared with the advertisers.

PPC Display Ads

PPC Display Ads

PPC Display Ads are a form of online advertising similar to Google AdWords. The ads are shown to the user on a website or app, usually in text, images, or video.

The ads are typically used for branding or direct response marketing purposes. PPC Display Ads have a higher conversion rate than other forms of online advertising because they are more targeted and provide an interactive experience for the consumer.

What Is PPC In Digital Marketing – The Bottom Line

As the article discussed, PPC can help you achieve various objectives. The most common reasons for using pay-per-click ads are to increase brand visibility, find new leads, drive more traffic to your site, and increase conversions. The best-known type of PPC advertising is Google AdWords, which allows advertisers to set a daily budget and bid on keyword phrases relevant to their business. 

After reading this article, you can answer the question: What is PPC in Digital Marketing? I hope this article helps you understand PPC and enhances your knowledge and approach toward advertising in Digital Marketing.