Pay per click (PPC) is the best known and most frequently used bidding model in online advertising. Basically, it means that you, the advertiser, will pay a specific amount to the platform where your ads are displayed every time a person clicks on them.
This definition is accurate, however makes PPC deceptively easy. In reality, it takes a lot of planning to create a good ad and make sure it is displayed to the right kind of people. Otherwise, an ad campaign will get a lot of empty clicks. These are clicks from people who are simply curious and have no intention to do business with the company.
But let’s slow down for a little and take a more detailed look of how pay per click works and how companies manage to get a good return on investment (ROI) from them.
Where Are Pay Per Click Ads Displayed?
The best known platform for displaying pay per click ads is search engine giant Google. Google offers advertisers three types of PPC advertising programs:
- Google Adwords – the ads are optimized for a specific keyword and displayed at the top of Google search result;
- Local ads – these ads are triggered when a person is looking for products and services in their local neighborhood;
- Display Network – through its partnership with over 2 million websites and 650,000 apps, Google can deliver ads to a broader audience.
Secondly, there are social PPC ads. These pay per click campaigns are displayed on social media platforms. The most active platforms from the point of view of advertising are Facebook, Instagram and LinkedIn.
How Does Pay Par Click Work?
When SEO roofing companies sets up a PPC campaign, they determine a bid amount – how much they are willing to pay for each click. There are complex calculations behind each bid, which take into account:
- The competition for a specific keyword: how many advertisers bid for the same keyword;
- The search volume: the number of users who search for the specific keyword;
- The objectives of the campaign: ad campaigns can focus on brand awareness, lead generation or sales.
What Factors Contribute to the Success of a Pay Per Click Campaigns?
There are three elements behind a PPC campaign with a good ROI: objectives, audience, and budget.
- Objectives – the advertiser must know clearly what they want to obtain: a newsletter signup, a client referral or a purchase. Thus, ad copy must be tailored to fit this specific objective and point to a relevant landing page;
- Audience – while Google does not offer many options for selecting the audience which will see an ad, social media platforms offer very detailed selection criteria. A company that has a very well defined customer persona will be able to select an audience that is most likely to interact with the ad;
- Budget – offering a small bid for each click means that the ads will be shown to a smaller audience, and of lower quality (user groups that other advertisers do not consider a good fit).
In conclusion, pay per click advertising is very efficient, if it is done properly, by trained and experienced professionals. Otherwise, it means spending a lot of money and getting poor results.