Premiere Creative’s Approach To Pay-Per-Click Advertising

Whether you’re shopping online or browsing through your social media feed, it’s more than likely you’ll encounter a PPC ad. PPC is an acronym for pay-per-click, which refers to a popular marketing strategy businesses use to drive traffic to their website. Digital marketers refer to this method as pay-per-click because businesses pay for each click every time someone views their ad and clicks on it.

How Effective Is PPC?

This marketing strategy, in essence, is the process of a brand’s advertisement appearing in search results or on various websites to generate traffic to the company’s site. Rather than paying a standard fee for an ad, companies pay for each click — meaning, they pay each time someone clicks on their ad and lands on their website. It may sound counterintuitive having to pay for something as small as an ad click, but these 10 statistics highlight why investing in PPC is essential for success online:

  • According to SocialMediaToday, more than 7 million advertisers invested a total of $10.1 billion in PPC ads just during 2017.
  • Internet traffic funneled through pay-per-click advertisements bring approximately 50% more lead conversions than organic web traffic.
  • The top 3 paid advertising spots get 46% of the clicks on the page.
  • 40% of brands want to increase their PPC budget, indicating that this is an effective and lucrative tool for marketers.
  • According to Formstack, PPC ads are one of the top three generators of on-page conversions.
  • 65% of all clicks made by users who intend to make a purchase go to paid ads.
    Google Ads and Facebook PPC Ads are the two largest advertisers on the Internet. (Google currently holds 37.2% of the digital advertising market, whereas Facebook holds 19.6%)
  • Startup Small Businesses earn $3 in revenue for every $1.60 they spend on Google AdWords.
  • People who visit websites via pay-per-click links on Google’s search engine results page are going to purchase something from your page about 0.5 times more frequently than visitors who found their way to your web page via Google’s organic results.
  • Statistics indicate that brand awareness can effectively be grown through nothing but paying for exposure on Google’s search engine results pages for search users that will most likely fit your ideal demographic (Just one brand awareness campaign, when done correctly, through paid Google ads can boost the metric up to 80%).

The intent of PPC is with its successfulness: the fee you pay is trivial because visits from potential customers are more valuable than the amount of money you spend to get them to your website.

The Different Types Of PPC Advertising

You can create PPC ads on several different popular platforms. Some of the most commons ways to execute this strategy are through search engine advertising, display advertising, and social media advertising. Knowing the ins and outs of these will help you make better purchasing decisions so you can increase your ROI.

Search Engine Advertising

Placing ads on search engines like Google, Yahoo or Bing is probably the most common PPC practice. With search engine PPC on Google, you pay to have your advertisement appear in search results. These ads will appear on the very top of the page above all organic results (with a small green label to mark it as an advertisement).

To create a PPC ad, you bid for an ad placement on Google whenever someone searches a keyword related to your business. For example, if we bid on the keyword “digital marketing,” an ad for Premiere Creative might show up on the top of the results page. This process entails choosing keywords related to your field (usually based on what you’re willing to pay), then paying that amount to Google whenever someone clicks your ad.

This method is great because people are already on Google searching for a product or service in your field. Therefore, having your ad appear in a potential customer’s search results will better your chance of making a sale.

Display Advertising

Display ads are banners on websites, which target a specific audience segment. These ads appear at the top, on the side, and in the middle of web content on almost every website. Like other types of PPC ads, these ads will link to your website.

While search advertising reaches audiences who have more intent to purchase, display advertising can create initial interests. Display ads allow you to personalize your banner by allowing you to use a mix of images and texts to create an ad that can really grab people’s attention. Display ads have a high reach and can reach large numbers of people.

However, as good as display ads sound, their prevalence can easily be their downfall. To be quite frank, display ads typically have lower click-through-rates (CTR) than search ads. When users see an ad on a website, they aren’t actively looking for a product or service, so they may not be in the right mindset or setting to conduct a purchase. Display ads are probably best for brand awareness goals rather than conversion goals.

Amazon.com is an example of a website that portrays display ads. These ads differ quite a bit from search ads. Search ads target keywords and search terms, whereas display ads target your interests. Since display ads are tailored to a specific user, you may unintentionally find something that sparks your interest and you may end up making an impulse buy or at the very least, become aware of the brand.

Social Media Advertising

Social media ads are a fast-growing segment of PPC due to constant growth and popularity. Social media platforms, such as Facebook, Twitter, and Instagram, can effectively target specific audiences based on their social media activity as well as other factors relating to their online network and interests.

PPC advertising on these platforms can help your business achieve higher click-through-rates while increasing brand awareness. Similar to display PPC, your ads will generate on the right-hand side of these social media pages. More importantly, your ads can also blend into the user’s feed as they scroll through their newsfeed.

One of the first to get into the game was Facebook. PPC ads on Facebook can reach users through basic demographics such as age and gender. These paid advertisements can also target users through online behaviors and interests. Facebook is free to use, but it generates a tremendous amount of revenue through their ads.

One of the ways Facebook makes this work is by integrating PPC ads into a user’s timeline. When people are scrolling through their timeline, they want to see posts that are relevant to them such as the whereabouts of their friends and family. Not only will users see relevant topics about their loved ones, but they will also see relevant topics about ads aligning with their interests. Similarly to display ads, when you view a social media ad, you may not intend on purchasing anything, but that may be what ends up happening.

How PPC Ads Target The Right Audience

The targeting methods for search advertising compared to display and social media advertising are a bit different. Ads on search engines will appear depending on the keywords used. On the other hand, ads on display and social media advertising depend on the user’s interests. These methods play a key role in suggesting the proper product to the appropriate consumer.

PPC Retargeting

Many may question how websites like Amazon and Facebook know behavioral information about users. The digital giants use a method called retargeting. Digital marketers serve retargeting ads to people who have already visited your website. When someone visits a website, their browser uses a cookie. When the visitor leaves the site, that cookie notifies retargeting platforms of their online actions to serve relevant ads based on the website visit.

For example, let’s say you were looking through a dog care website. That website uses cookies to track your activity as you navigate throughout the pages. When you leave the website to go onto Facebook, you may say see a PPC ad about that very dog care website on your Facebook feed. Then, when you click on their ad, it returns you right back to the dog care website. Retargeting helps personalize what each user sees online which enhances their online experience because it shows products and services relevant to them.

PPC Keyword Research

When it comes to creating effective PPC ads, targeting the right keywords is vital to achieve optimized results. The ads you create need to focus on a specific set of keywords to target; this is how search engines know when and where to display your ad. These keywords tell search engines which terms or search queries are most relevant for your ad, so your ad can be displayed accordingly.

The general rule is to select between one to five keywords per ad group, and those keywords should be as relevant as possible. You want to choose keywords that are closely aligned and specific with the message of your ad group. Effective keywords should be:

  • Relevant – Of course, you don’t want to pay for web traffic that has nothing to do with your business. You want these keywords to direct your ad to those who will produce higher PPC click-through rates, effective cost per clicks, and increase profits. That means the keywords you bid on should be closely related to your product or service.
  • Specific – Along with your keyword research including the most popular and frequently searched terms in your niche, you should also invest in long-tail keywords. Long-tail keywords are more specific, which accounts for a good portion of search-driven traffic. These types of keywords have less competition; therefore, they are less expensive.
  • Expansive – Since PPC is online and the Internet is always evolving, you want to constantly refine and expand your campaigns. You want to create an environment in which your keyword list is constantly growing and adapting to the online world.

Key Performance Indicators (KPIs)

It’s important to note that once you choose your set of keywords, you’re able to eliminate and add keywords as you see fit. Make sure to closely monitor your keywords throughout your campaign — eliminating those that don’t bring in the numbers and increasing those that do. To do that, you must first track how well your PPC campaign is doing. The best way to track how well your ads are doing is by observing its KPIs (key performance indicators). Here are some KPIs to look for in a successful campaign.

  • Clicks – Clicks are an early indicator of PPC campaign success because every conversion starts with a click. This measures how many people clicked on your ad. However, you shouldn’t measure a PPC campaign’s success solely by clicks. Instead, focus on the actions that users take once they click through to a website like submit their information or download an eBook offer.
  • Click-Through-Rate (CTR) – CTR is a key metric for campaign performance. You can measure your CTR dividing the total number of clicks your campaign received during a period by its total impressions. For example, this equation tells you that out of 1,000 impressions, your ad received 100 clicks. Therefore, your CTR is 10 percent. Benchmarking and improving your CTR is paramount because it helps measure your success. Knowing how to measure CTR is key to being able to indicate your performance.
  • Bounce Rate – Bounce rate is the percentage of single-page visits or web sessions. It is the percentage of visits in which a person leaves your website from the home page without browsing any further. You can calculate your bounce rate by adding up the total number of one-page visits, and then divide that sum by the total number of entries to a website. Knowing your bounce rate can help indicate what you need to adjust to entice more people to stay on your website.
  • Conversion Rate – Conversion rate is not only an indicator of campaign success, but it’s also the main objective of a PPC campaign. You can measure the conversion rate by dividing the number of conversions the campaign received by the total clicks. For example, if a PPC campaign had 100 clicks and 10 conversions, 10/100 means that the conversion rate would be 10 percent. A good conversion rate is indicative of a successful strategy because it means people want what you’re offering, and they’re able to attain it easily.

Tracking these key performance indicators is very beneficial in refining and improving PPC campaigns. KPIs can help you make profitable advertising decisions, determining the right keywords, and identify areas in need of improvement.

Tracking KPIs With Google AdWords

Now that you understand what data insights to track, Google AdWords is one of the most popular software available, which will help you track your KPIs.

  • Actions taken on your website: This is the most common method of conversion tracking, where Google provides insights about purchases/sales, sign-ups, page views, and more.
  • Actions taken on your app: If you are promoting an app, you can track app conversions with Google AdWords as well! You can track app installs as well as in app-actions.
  • Import (from other data sources): This is the newest way to track conversions captured by other data sources, such as Google Analytics, Firebase, and Salesforce. The aim is to be able to account for conversions that happen “offline” as well.

Google AdWords is one of the best ways to track your PPC campaign’s key performance indicators. This software provides you with valuable insights, which enables you to revise and refine any loose ends.

Reap The Benefits of PPC

There is a reason this method is popular. The results can generate website traffic, brand awareness, and most importantly, revenue! However, those are just the end-result benefits. There are benefits gained throughout the process of the campaign as well.

Budgeting

You can tailor and adjust your PPC spending around your online advertising budget. You are in power, so you choose how much you want to pay for each click. Keyword costs tend to differ based on the competition in your field, but you can still set a maximum bid on the keywords of your choosing to ensure you don’t exceed your budget.

Instant Results

As opposed to other marketing methods such as SEO, which take weeks or sometimes even months to become effective, PPC offers instant results. PPC takes effect the second you submit your advertising campaign to the search engine of your choice. You can keep track of which keywords are successful and which are not. By analyzing the data results, you can retool your overall strategy for greater results.

Target Market Specifics

PPC also allows you to target your local market. You can target specific regions and bid on keywords based on their geographical areas. Advertising can expose your company to local audiences quickly, putting you on the map.

Time To Launch Your Next Pay-Per-Click Campaign

Now that you know the different styles of PPC, you can now create an informed decision on which method is best suited for your brand. Overall, PPC advertising campaigns give you room to work. You can advertise within your budget, to your optimal target audience, and revise any errors along the way. Luckily, Premiere Creative provides expertise in this field. With our experience, we will expand your online presence, which will easily bring in revenue and enhance your brand awareness. It’s time to launch a pay-per-click campaign! Dial (973) 346-8100 to connect with our PPC team today.

We’re an ROAS-driven digital marketing agency specializing in SEO, PPC, Social Media, Amazon Advertising, Email Retention, and Influencer Marketing.

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