Paid Search Advertising – PPC

This semester, I have taken the liberty of participating in the Google Online Marketing Challenge. It has been a roller coaster of fun, stress and learning. It’s been very informative of how ads work on Google, what the benefits of them are, and how great they can be for small businesses.

So, what is Paid Search Advertising (PPC)?

  • Advertising on search engine results page
  • Triggered by user when they enter a related keyword phrase
  • You, as a business, select and target relevant keywords to your business
  • Ads displayed when customers have searched up those relevant keywords
  • PPC – pay per click – Advertisers only pay when users click on their ads
  • Increase of paid ads being used by companies

Position in PPC

Highest bid – what is a bid? How does a bid work?

There are 3 types of bidding strategies that your business can choose from. They determine how you want your ads to be used. This is determined by the goals you have planned for the ads.

  • Cost-per-click (CPC) bidding: use if you want to drive customers to your website. This is great if you want to push new consumers to your website as much as possible.
  • Cost-per-impression (CPM) bidding: use if you want to make sure that customers see your message. This is perfect if you want to increase brand awareness of your brand and website.
  • Cost-per-acquisition (CPA) bidding: use if you want to maximise conversions on your website. This is great if you want your website to make the most sales,

Quality score – What is this?

Now, it doesn’t matter how much you bid. You could bid $5 for your keyword and/or ad and someone who has bid $1 could win the auction. How and why? It all comes down to quality score, which effects ad rank. Quality score is an estimate of the quality of your ads and landing pages triggered by that keyword in auctions throughout the day. The components that make up Quality Score are (1) click-through rate, (2) ad relevance, and (3) landing page experience. Every keyword you have will be scaled from 1 to 10, 1 being the lowest and 10 being the highest.

Why should I care about Quality Score? My ads will still show on search engine results page regardless of my Quality Score.

You should care about your quality score because it effects your ad rank. Ad Rank refers to the order in which your ad will show up on a search engine results page (also known as ad position). The better your quality score is, the more likely your ad will show up at the top of the search engine page, rather than at the bottom or the side.

Click-through rates – what does this mean? And how does it benefit you (as a company)?

Click through rates (CTR) compares how many times your ad was clicked to how many times your ad was shown. As mentioned before, CTR is a component of Quality Score. It will look at the history of keywords matched with landing pages. Notice how keywords and landing pages come up again?

Relevance of keyword to your landing pages & ads – Keyword Planner

Keywords are important when using PPC advertising because they’re what consumers search on any search engine. It can be hard to figure what keywords would be most relevant for your ads. Luckily, Google AdWords has a tool called Keyword Planner which helps your get ideas, related keywords and search information. It can also provide historical statistics and traffic estimates of each keyword.

Are you thinking about using paid search advertising? Here are some pros and cons to help you decide!

Pros of PPC

  • You don’t have to pay until someone clicks on your ad
  • Highly targeted and specific
  • Easy to measure and account for
  • Technically easier than SEO
  • Return on Investment comes from how many conversions you make

Cons of PPC

  • Competitive and expensive
  • Inappropriate, particularly for companies focusing on lifetime value of customers
  • Requires specialist knowledge of AdWords
  • Time consuming
  • Can be irrelevant to consumers

Until next time, click this post to leave a comment and give this post a like

P.S. Sadly, no memes this week but I promise more memes in the next week!

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2 thoughts on “Paid Search Advertising – PPC

    1. Good question SUE! PPC can be used for a lot of things but I feel that it’s most effective for brand awareness, building brand loyalty, and exposing yourself (brand) to more people. Organic search engines can also do these things but PPC can allow you to be more specific in terms of targeting consumers, location, or both.

      Like

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