What is PPC? Pay Per Click Basics

Pay Per Click


There are a lot of acronyms in the world of marketing. All are loaded with very important meanings for the success of each of your campaigns. This guide reviews one of those terms: PPC or pay-per-click.

In a very brief way, we can say that it is a model in which you pay for each click your advertisement receives in digital media. So, keep reading and discover how it works, the type of campaigns you can create and the main platforms where this type of marketing takes place.

What is PPC or pay-per-click?

As we said above, PPC stands for pay-per-click. A model for digital advertising in which advertisers pay a set amount each time one of their ads is clicked on. For example, if your organization activates a PPC campaign in Google Ads, each click you receive will have an associated cost. However, this figure can be insignificant as long as the traffic generated to your website fits the profile of your ideal buyer and, consequently, has a high probability of becoming a customer or user of your business.

This is a way to "buy" traffic to your website or landing pages. But, the key to success is getting those visitors interested in the product or service offer you have. Otherwise, what is the use of having hundreds and thousands of daily visits?

Key elements of PPC

To achieve a good PPC campaign, you must understand each of the elements, or key concepts, involved. There are 6. Below we review them in detail and explain the importance of each one.

CPC or cost per click

This is the price the advertiser, in this case, pays for each click their advertising piece receives. It is calculated by dividing the total invested by the total clicks received.

CPC = investment / clicks.

Impression

Unlike the previous concept, in this case, the level of user interaction with your ad is not measured. An impression only tells you how many times your ad has been seen. During a given time.

Attention! Impressions do not measure unique users. In other words, if your campaign impressions are 1,500, they may have been presented more than once to the same person.

Ranking

It refers to the value that Google Ads uses to establish your ad's location on its platform or results page. In general, the ads that achieve the best rating are the ones that will appear in the first position.

Several factors govern Google to determine this ranking. For example, they consider the bid you are working with, the quality and content of your ads and your landing page, the competition for your campaign, the search context of your audience and the quality score.

Quality score

It is a diagnostic tool from Google that allows you to understand how well your campaign compares to other advertisers. The quality score tells you, on a scale from 1 to 10, if the quality of your ads and landing page is good or not. The higher the result, the better it is being evaluated.

This indicator is generated from 3 components:

  1. The average click-through rate you can expect,
  2. How well do your ads reach the people you want to reach
  3. The quality of a visitor's experience on your landing page.

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Maximum bid

This element is nothing more than the maximum amount of money that you are willing to invest for each click that your ad receives.

For example, if you establish that the maximum bid for your campaign is €1.5, then at no time will you pay a higher figure for a click on your PPC ads. The higher your maximum bid, the better your chances of your ads appearing at the top of Google's search results pages.

Segmentation

In the world of PPC marketing, you have a wide variety of options regarding targeting. For example, you can send messages to people based on their search behaviour, the content they are consuming, the behaviours they have shown in the digital world, etc.

Here it is essential that you take care of the details, pay close attention and understand who your campaign is aimed at. You do not want to make the mistake of generating traffic to your website that will never purchase any of your products or services.

If you’re interested for running a campaign then you should get in touch with pay per marketing agency.

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