How Does Pay-Per-Click (PPC) Advertising Work?

03/15/2022 | ,

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What Is Pay-Per-Click Advertising?

Before we dive into how PPC advertising works, we should quickly discuss what it is. PPC advertising is a form of marketing where the advertiser pays each time a user clicks on their ad and visits their site.

The most prominent form of PPC is search engine advertisements. This is where the advertisers bid on popular keywords in order to be featured at the top of a search engine in the sponsored links section.

This isn’t an organic way to promote your ads. The highest bidder will win the keywords and have a strong chance of appearing at the top of a search engine when those keywords are entered.

The budget of your PPC ad campaign is completely under your control. You enter what you’re willing to spend per ad, and per campaign. Paying for every click might seem trivial, and potentially damaging, but it really isn’t.

It all depends on the products that you’re selling. If you have a great site, with great products, then paying a small fee to receive a large commission is profitable. For example, if you pay $5 per click, but one of those clicks results in a $500 sale, well then the $5 ad to drive that traffic was worth it.

How Does Keyword Bidding Work In PPC Advertising?

Keyword bidding takes place in the bidding system Ad Auction. Here the advertiser will bid on keywords that are specific to their niche. You need to be careful when choosing these keywords. Their relevance will ultimately decide the fate of your ad campaign.

The keywords that you bid on should take users exactly where they want to go when typing those words in their search engine. If you’re selling different car accessories, then “car accessories” would be a great keyword to bid on.

This way you cover all of the different car accessories that a user might search in their query. The keywords that you bid on should cover everything that your business does. This will increase your chances of being found by different users.

Another thing you need to keep in mind is the relevancy of your site. Google will promote your ad if you win the Ad auction but getting to the top of the page depends largely on your brand. Google is still going to try to display the most relevant sites.

Make sure that you’re not trying to trick the algorithm by bidding on keywords that you think will get a lot of searches and not providing those users with the accurate information that they’re looking for. Stay honest, and your chances will be much greater. 

Now That You’ve Launched Your PPC Campaign What’s Next?

Whether you’re using Google Ads or Bing, the work isn’t finished once you win a bid. Now you need to manage your PPC campaign. You need to make sure that your keywords are performing, and if not, switch them.

Once you start a campaign, there are plenty of things that you can do to maximize your conversion rate. Just because you entered a keyword in the Ad auction, doesn’t mean that you can’t change it, if that keyword isn’t performing.

A few things that you can do are:

  1. Add more keywords- If your keyword is performing well and you’ve noticed an increase in visitors, add some more keywords. Cover more ground, so that no matter how users are searching they’ll find their way to your page
  2. Continue to update your landing pages- Though users might be searching for car accessories, most of the time they’ll have a specific car accessory in mind. Update your landing pages and CTA’s. Don’t drive every potential customer to the same landing page. Update them to fit your user’s search query.
  3. Check the data on expensive keywords- It’s just a fact that many keywords are going to underperform. You need to check the data on which keywords are performing and which aren’t. Don’t continue to pay for keywords that aren’t yielding any results.
  4. Ad some negative keywords- Negative keywords are a great way to avoid appearing in search results for certain keywords. You can add negative keywords that will prevent any mix-up in a search that leads to clicks that don’t convert.

What If You Don’t Have Time To Manage A PPC Campaign?

This is certainly a valid question. Many companies don’t have the time to launch and manage a PPC campaign. There is no getting around it, it’s time-consuming. Not only that, without the proper knowledge of PPC advertising you might be spending money on things that you don’t need.

There are different ways to get help with managing a PPC campaign. There are a lot of PPC agencies that you can go to should you need help. They will discuss your plans and help you come up with a campaign that will offer the best bang for your buck.

There’s also Wordstream. A site with many free, and paid tools to help you manage a successful PPC campaign.

Wordstream’s marketing tools will connect with your Google Ads, or Bing Ads and process data that will help maximize leads, and conversions. These tools will help you find the best keywords, best negative keywords, information on bidding, and other necessary information.

You can also use the Wordstream advisor. This will send out a notification anytime that immediate action is required to yield better results. Once you get the notification, go and make the proper changes and you’ll have more success with your campaign.

There’s A Lot Of Money To Be Made With PPC Advertising

PPC advertising is definitely a way to drive more traffic to your site. It doesn’t just have to be search engine ads like Google, or Bing. All social media platforms have paid ads now as well.

So if you want to drive more traffic to your social media pages like Facebook, Twitter, LinkedIn, or Instagram. You can run, and manage a PPC campaign here as well.

Getting the click is only the first part. You need to think about where you want that click to take your users. Wherever that is, that should be the heart of your PPC campaign.

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