Would you go to the market and pay only for placing your products on the rack? No, right. It’s not a museum. Then why do it online too? Ok, I know brand awareness is important. But so are sales. Bid farewell to the old school methods of online advertising and say hello to PPC.
What does PPC mean?
Expanded to Pay Per Click, it is also known as Paid Search. PPC is an advertising platform where businesses bid on keywords to get the most number of clicks at the lowest price. All major search engines offer PPC marketing out of which Google Adwords is the most preferred.
How is it different from early online advertising?
As compared to the ancient methods, PPC is a cost effective model. When you advertise using this model, your privilege is that you do not pay for the thousands of times the ad is viewed by the millions of people. You only pay when someone clicks on it.
How does it work?
Advertising on most PPC programs depends on the race between businesses on the price they are willing to pay per click to promote its ad the most. For example, if a business on chandeliers wants to advertise, they will choose keywords related to chandeliers so that when someone searches for it, they will see their ads. He will then decide over the price that he wants to pay per click, depending on his daily budget. If he bids Rs. 3 per click and a competitor bids Rs. 5, his ad’s position will be lower. For that, he needs to improve the quality score. It means, while he bids at a lower cost, he can still grab a higher position. With Google, you can check the quality score for any keyword as follows:
1) Click the Campaigns tab
2) Go for the Keywords tab
3) And then click on the speech bubble
How to track user activity?
PPC is one of the measurable methods of marketing. When you plan your PPC campaign with Google Adwords, it lets you track conversions. You can see how many clicks you received and how many of them made a purchase. It gives you metrics to celebrate your success and also to learn from your mistakes. You can also use Website Analytics to see what activity the visitor performed on your website.
A Pay Per Click Example
For instance, a company has to pay INR 30 per click to get a good number of clicks per day and they set their daily budget to INR 300. By the end of the week, they find themselves paying INR 2,100 with roughly 70 clicks. If they set an advertising budget of 6000, then by the time it is entirely used up, they have a ballpark of 200 clicks. They get 10 conversions out of the 200 clicks, which means their Cost Per Acquisition (cost per customer) is INR 600. With this information, they decide to spend INR 9000 to bring double the conversions. Similarly, keep a track of your campaign and find out your CPA. Because once you know it, you are good to go.
PPC advertising is not as difficult a task as it seems to be. It is not a cakewalk either. All you have to do is your homework on quality keywords. They are going to be your armor in this battle. With that, you must also know your TG well to attract the right customers. Educate yourself from the mistakes you make in every ad campaign and make sure you improve them during the next one.
