What is PPC? Google Ads & Pay-Per-Click Explained

Have More Questions About Effectiveness of PPC or PPC Management?

If you’re wondering, “What is pay-per-click?”—you’re not alone!

In fact, studies show a large majority of Chief Marketing Officers (CMO’s) and Directors of Marketing don’t know precisely what pay-per-click (PPC) encompasses. With so many associated terms, it can be challenging to understand what exactly PPC is and even harder to effectively strategize a successful PPC campaign.

Consider the following terms, each one a vital part of PPC strategy:

  • Keywords
  • Ad Groups
  • Text Ads
  • Remarketing Ads
  • Quality Score
  • AdWords Mobile
  • Google PPC Management
  • Ad Extensions
  • Conversion-rate-optimization (CRO)
  • Cost-per-click (CPC)

Before we continue here, let’s get one thing straight: There is no magic bullet in either PPC or digital marketing. Although some marketing partners will tell you PPC alone will turn your business around, if it’s not executed properly or part of a comprehensive digital marketing strategy, that’s not likely to be true.

Start with the basics.

What-is-ppcPPC is a type of digital advertising and a very small piece of the larger digital marketing picture. It can fit within a variety of different platforms, such as Search Engine Optimization (SEO,) Search Engine Marketing (SEM,) and Social Media Marketing. When implementing PPC, your business will pay for every time a user clicks a specific ad for your website, product page, or landing page.

Although a PPC campaign is relatively easy to begin, effective goal setting along with a strategic execution will optimize your campaign and ROI. Don’t spend your advertising budget on keywords that won’t develop any return! Before getting started, check out our Beginners Guide to PPC, How Does PPC Works.

Learn How to Get the Most out of PPC

Quite simply, PPC encompasses a small portion of digital advertising tactics and methods. It’s important to always discuss PPC management and Google Ads (formerly known as AdWords) with a trusted agency so you can maximize results!

As you begin to vet a company to execute and manage your PPC campaign, it is vital to understand how these four terms will make a significant impact on your marketing budget:

  1. Daily Budget
    The allotted amount of money you are willing to spend on PPC ads each day. For example, if your monthly budget is $8,000, and you want to run ads Monday through Friday, your approximate daily budget will be $347 (on 23 days working days.) Once the daily budget is reached, your ad will no longer display.
  2. Keyword
    A word or phrase a user might type into a search engine to find your advertisement. Here is a great article from our friends at Wordstream who summarize the common approaches to keyword selection, including brand terms, generic terms, related terms, and competitors terms.
  3. Bounce Rate
    The percentage of times a visitor leaves your site without going to any other pages on the website. Take careful note: minimizing bounce rates cannot be overemphasized. Ask your team or marketing partner to optimize your landing pages for your PPC campaign, using the best practices and conversion analysis software.
  4. Quality Score
    This is assigned to each of your keywords to measure how relevant it is to the PPC ad. Generally speaking, the higher the quality score, the higher your ads will be ranked in position for less cost. These scores are essential for measuring relevance; highly relevant ads, campaigns, and landing pages have a higher click-through rate (CTR,) raising your quality score.

There are a variety of other terms that will be helpful as you approach the new PPC campaign for your business:

  • Impressions
  • Keyword bid
  • CPC (cost per 1,000 impressions)
  • Ad copy

Our comprehensive eBook, What Is a PPC Campaign? 6 Simple Steps to Success, will provide you with a much broader view of PPC advertising and alternative strategies. You can also check out our infographic which answers five of the most common questions about PPC advertising

If you want further assistance on implementing a PPC campaign, contact us today for your complimentary consultation!