The best way to create a winning strategy is to become knowledgeable about the two main types of pay per click. Those two types are cost-per-click (CPC) and cost-per-thousand impressions (CPM).
What is Pay Per Click advertising?
Pay per click; or PPC, is the practice of bidding on keywords to pay for ads that are usually shown near the top or to the right side of organic search results.
On many occasions, pay per click can be used as a supplement to drive traffic through traditional SEO methods.
When using pay per click you only pay when someone actually clicks on your ad and goes through to your website. The cost of the pay-per-click is based on the amount that an advertiser sets with Google, Microsoft Ads or Yahoo! which are three of the most popular ad providers. When a person types something in search, they are then taken to several advertisements that will appear on the search engine results page (SERP).
PPC requires constant monitoring. Many agencies offer daily reports that will help you track your progress, allowing you to adjust your pay per click strategy as needed. It’s important to review performance on a regular basis so that pay-per-click doesn’t overspend without breaking even.
What is cost per thousand impressions?
Cost per thousand impressions (CPM) is an Internet advertising pricing model in which the advertiser pays for every 1,000 times that ad is shown. Display ads are usually sold on a pay-per-impression basis, while search engine queries are priced using cost-per-click/sale models.
What are the benefits?
The first benefit of PPC advertising is its efficiency. With pay-per-click, companies only pay when a person actually clicks on the ad, so pay-per-click advertising is a great way to target customers who are truly interested in what you have to offer.
In addition, Google ads enable advertisers to choose exactly which keywords they want their ads associated with and pay only for those that prove useful. This feature of pay per click advertising is particularly useful for advertisers with limited budgets who might otherwise pay for irrelevant keywords.
Another benefit of PPC advertising is that it enables advertisers to highlight the best keywords in their ads. For example, if an advertiser offers both blue cars and red cars, it enables them to pay only when someone clicks on ‘blue cars’ rather than ‘blue cars or red cars’.
Not all pay per click advertising is successful. The main challenge that many advertisers face is knowing how it advertising works and what to do in order to create a winning strategy that delivers positive return on investment (ROI). To be successful, campaigns must be targeted towards the right keywords, and bids must be managed effectively.
The following tips will help you to understand online advertising and create effective campaigns.
Choosing the Right Keywords for Your Campaigns
One of the biggest mistakes that advertisers make is choosing the wrong keywords for their campaigns. When you’re choosing keywords, look at their search volume and CPC rates. Although higher bids may be more enticing than lower bids, it’s crucial not to choose keywords for which people are not actually searching.
Adding Negative Keywords to Your Campaigns
A well-managed campaign needs to include negative keywords. Negative keywords are words that you do not want your ads to show up for. If someone’s search includes a common term like “free phone calls” when you offer a paid service, you definitely don’t want your ad showing up.
How much should I spend on pay per click advertising?
If pay per click advertising is a relatively new concept to you then it may be best not to spend more than £10-£20 per day. If your campaign has shown strong results in the past using Google ads, then you could increase the daily spend.
How much should I pay an agency?
For pay per click advertising agencies, pay per click bidding is not just about the fees they charge you. It’s also about the value they can provide through their knowledge and expertise which will help you achieve strong results. Those agencies that have superior knowledge of pay per click advertising and Google ads, will have a better chance of being able to correctly assess pay per click spend and then in turn can charge a higher rate.
Where should I set my maximum bid?
The key to success is to ensure that your cost-per-click (CPC) bid is set as high as possible given your bid-per-click (BPC) budget. This will ensure that you are positioned at the top of Google search pages for targeted keywords and phrases. There is a delicate balance between costs and benefits so you need to find the bid amount that delivers search engine returns without going over budget. The cost-per-action (CPA) goal you set for your campaign should also be considered when setting bids and budgets.
Is Google Ads the best place to use PPC advertising?
The marketing media landscape is growing at a rapid pace. Is Google Ads the best place to use pay per click advertising? And what about pay per click networks and pay per click alternatives, Google syndicated search and Bing pay per click advertising? Which pay per click network can deliver the best results?
These are all valid questions but the answer is… It depends.
As a beginner, I would stick to google ads, to begin with as they have the easiest software and by far the highest amount of search volume. If you become comfortable enough and believe that you have the market for it then I would say move on to Bing advertising as they are another big competitor in the scene.
For example, we found that one of the businesses we work with get much better conversion rates with Microsoft ads as they are a B2B company and lots of company work computers make you use the preinstalled Bing browser instead of google.
I hope that you found this article useful. To do pay per click advertising you need to understand that it is a science that does take time to master. If you are new I would suggest watching some tutorials on YouTube that can give you step by step guides on setting up your first campaign.
And if you would like take a look at some of our services linked below