Pay-per-click (PPC, for its acronym in English) is an online advertising model that describes the way in which the advertiser pays for the web page that promotes his ad. The rates for this type of campaign are paid according to the number of clicks that Internet users make on the advertisement.
The main objective of using this specific method is to achieve an increase in the visibility, traffic, and sales of a website by paying only when a visitor interacts with the ad. It is very common for business owners with a web presence to look for this way of advertising due to its high return on investment (ROI) and its wide reach of target audience.
How does it work?
Advertisers, web pages, search engines, and social networks participate in the pay-per-click advertising model. It is also frequent that this method is used between a seller and a Marketplace to promote products and conveniently place them in the first positions on the page. PPC has three different payment systems.
- Cost Per Click (CPC): In this version, you pay when a visitor clicks on the ad and is redirected to the advertiser’s landing page.
- Cost per impression (CPM): in this case, the advertiser will pay a fee that will depend on the number of times their advertising is shown.
- Cost per acquisition (CPA): the payment is made when the user completes the objective of the campaign through the ad. This purpose may be for the person to buy a product, subscribe to a newsletter, purchase a course, book a trip, etc.
Advantages of using PPC
Any advertising campaign has great advantages when they are well measured and designed. Pay-per-click is no exception, and due to its features, it is likely to be among the most profitable.
- Increase in web traffic
- Payment for results: if there is no click, there is no payment
- Analysis of results: you can know which keywords generate the most clicks, and how many visits and you will have many metrics in real time
- High possibility of target audience segmentation
- Controlled spending: the advertiser chooses how much he wants to spend
How to make a PPC campaign?
To run a campaign with the pay-per-click advertising model, the advertiser must:
- Choose the platform you will use.
- Initially, you must register.
- Proceed to create the ad: text, image, or video.
- Specify the cost per click
- Maximum CPC to enter an auction
- Fixed CPC
- The next thing is that the ads are displayed on the platforms or websites that work with your advertising system. For example, the ad could be displayed on the Google search engine and also on some web pages related to the topic that has been approved for your Adsense membership.
- Finally, the platform will charge the advertiser for each click the ad receives.
Main platforms
Most platforms such as social networks, search engines, and marketplaces monetize in some way through PPC because they create their own programs to provide their users with this variant of advertising. In the case of web pages, in general, they have a series of requirements that must be met before being able to add spaces for this type of advertising.
The most popular platforms on which an effective PPC campaign can be run are as follows:
In search engines
- Google AdWords
Among all the search engines, Google is the king, and that favors that it surpasses its competition in the number of advertising campaigns that are carried out on its own platforms google.com and youtube.com, as well as all the web pages that are associated with them through AdSense.
- Bing Ads
- Yahoo Ads
In social networks
- Facebook Ads
Facebook is one of the most popular social networks with a large number of visitors and advertisers. This is the one who follows Google in a general way in this type of advertising business. After the acquisition of Instagram and WhatsApp, the growth of Facebook Ads in terms of advertiser acquisition has increased considerably.
- Twitter Ads
- LinkedIn Ads
In marketplace
- Amazon Advertising
PPC campaigns are advantageous in e-commerce as they target customers ready to make an initial purchase. Achieving a conversion in users with this feature is having half the sales funnel traveled. Ads as the platform’s own products at the top result enhance user experience and natural interaction.
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