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What is PPC in Digital Marketing? Learn The Basics of Pay-Per-Click

I’m sure you have come across many ads on the internet. Their revenue model is based on a Pay-Per-Click system. You, as the owner of a website, can publish ads and be paid every time it is clicked on.

The goal of this is to drive the user who clicks on the ad to the advertiser’s website. Search Engines are popular examples of platforms that allow advertisers to run their ads.

What is PPC?

PPC or Pay-Per-Click is an advertising model where an advertiser would pay a publisher every time a user clicks on the ad. Typically this model is employed by big Search Engines like Google or Social Networks like Facebook.

It is usually centered around keywords. Advertisers will bid on the price of these keywords. For example, the search term “Used cars” will be auctioned to used car dealerships.

pay per click ad example

The highest bidder earns the right to ad space on the publisher’s website. Now, every time a regular user types “Used cars” they will be referred to the dealership’s ad. If a user decides to click on it and takes the user to the dealership’s website, compensation is owed to the publisher. 

What is Google Ads?

Google Ads is an advertising platform owned and developed by Google. Advertisers bid to have their ads briefly displayed. These ads have adopted all media types, text ads, images, and even videos.

Last year Google ads generated $257.6 billion. Google is currently partnered with over 2 million websites and has a near 90% reach of all internet users. This is why it has become so profitable. It can be a great way to direct traffic to your side. 

What type of marketing is PPC?

PPC is a type of digital marketing. It is aimed at online users who visit popular websites.

The process of advertising involves bidding for ad space where users are most likely to see your ad and, once your ad is uploaded, every time a user clicks on that ad, the advertisers pay a fee to the publisher. Your goal as an advertiser is to maximize return on ad spend (ROAS). 

google ads home page

Is Google Ads PPC?

Yes. Google Ads is the most popular PPC advertising platform. It is also Google’s main source of revenue. Google has dominated the search engine business since its beginnings.

Due to this, it has highly optimized systems that report users’ most common searches on the web. PPC requires a good understanding of your target customers to make sure your budget is spent right and on relevant ads.

google ads or ppc banner

What are the benefits of PPC?

Some of the benefits PPC provides are:

  • PPC provides instant traffic to your website. Ranking through organic searches can take months of work to accomplish. With PPC you can bypass that and obtain instant results.
  • PPC saves you time so you can focus on your business. Managing a successful PPC campaign requires a time investment in research. The time that can be better spent working on your business aspects.
  • PPC is targeted to specific customers. You won’t feel your money is going to waste as you initially bid on keywords that you would like to appear under.
  • PPC and SEO work well together. Although these two are often compared with each other, PPC insights can provide a great deal of information in choosing target keywords to boost your SEO.

Is SEO better than PPC?

There are of course advantages of PPC over SEO. If your campaign is established in its best form, an excellent return is insured. But before choosing between PPC and SEO consider that you first need to decide on the maximum size of your advertising budget.

If you have a strict budget plan, PPC may be the best option for you. Otherwise, SEO may be a good option if you enter a competitive field and want to direct organic traffic to your website.

Are PPC and CPC the same?

Although PPC and CPC are used in conjunction in marketing campaigns, they are not the same thing. PPC is the model that ad publishers and advertisers follow, where the advertisers pay a fee for the ad every time a user clicks on the ad.

CPC on the other hand is not a model, but a metric. This metric measures the overall cost of each click. CPC is based on the number of clicks that come in, the more clicks, the cost decreases.

kpis ad spend

Why do businesses need PPC?

PPC can greatly boost a business’s advertising capabilities. Once a business has established a PPC marketing campaign, it should read the data returned and make necessary adjustments to the campaign.

This process should be repeated recursively to optimize the campaign to changing trends. Another benefit that businesses gain is that PPC visitors are very likely to convert.

According to data from Unbound, 50% of visitors are more likely to convert from a paid search ad than organic links.

How can PPC help my business?

PPC helps businesses reach their target audience very fast. It is a great way to develop brand awareness, especially if the products or services you provide are reliable. PPC is a great way to drive profit.

PPC offers a high return on investment compared to other forms of marketing. You as a business can limit the amount of expenditure per click. Thus giving you complete control of your ad spending.

Victor Martinez

Web designer & digital marketer helping online businesses grow online. With 10+ years of experience.