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What is PPC?
What is PPC?

* What is Pay-Per-Click Marketing (PPC)? – [3 minutes]

David Halmai, B.Comm.
  •  July 3, 2023

What is PPC Marketing and How Does It Work?

If you are looking for a way to reach more potential customers online, you might have heard of PPC marketing. But what is it exactly and how does it work? In this blog post, we will explain the basics of PPC marketing, its benefits, and how it differs from SEO.

PPC definition and benefits

PPC stands for pay-per-click, an online advertising system in which advertisers pay for one of their online ads each time a customer clicks on it. PPC marketing is an efficient and affordable way to promote your products or services or, if you are in an agency, the products or services of your customers to the most valuable audiences.

Where do PPC Ads Appear?

PPC ads can appear on various platforms, such as search engines, social media, websites, and apps. The most popular platform for PPC marketing is Google Ads, which allows you to bid on keywords related to your business and show your ads on Google’s search results pages and other partner sites.

Get Pay-Per-Click Management Services

What Does Pay-Per-Click Mean?

Unlike traditional advertising, where you pay for exposure regardless of the results, PPC marketing lets you pay only for clicks, which means you only pay for interested visitors who are more likely to convert into leads or customers. Moreover, you can control your costs by setting a budget and adjusting your bids according to your goals and performance.

Can you Get Instant Results from Pay-Per-Click Marketing?

Another benefit of PPC marketing is that it gives you instant results. Unlike SEO, which takes time to build organic traffic and rankings, PPC marketing can generate immediate visibility and traffic for your website. You can also test different keywords, ad copy, landing pages, and offers to find out what works best for your target audience and optimize your campaigns accordingly.

How to calculate Return on Ad Spend in PPC?

One of the most important metrics to measure the success of your PPC marketing campaigns is return on ad spend (ROAS). ROAS is the ratio of revenue generated by your PPC ads to the cost of running them. For example, if your sales from PPC are $1,000, and you paid $500 for PPC click costs, your ROAS would be 100%:

$1000 profit – $500 cost = $500) / $500 cost = 1.0 = 100%

The higher your ROAS, the more profitable your PPC marketing campaigns are. However, ROAS is not the only metric you should consider. You should also look at other indicators, such as click-through rate (CTR), conversion rate (CVR), cost per click (CPC), cost per acquisition (CPA), and lifetime value (LTV) of your customers.

Difference between PPC and SEO?

PPC and SEO are both strategies of search engine marketing (SEM), which aims to increase the visibility and traffic of your website on search engines. However, they have different approaches and advantages.

SEO stands for search engine optimization, which involves optimizing your website content and structure to rank higher on organic search results for relevant keywords. SEO requires consistent effort and patience to build authority and trust with search engines and users. SEO can bring long-term benefits in terms of organic traffic, brand awareness, and credibility.

PPC, on the other hand, involves paying for sponsored ads to appear on top or beside the organic search results for specific keywords. PPC can bring immediate results in terms of paid traffic, leads, and sales. PPC can also help you target specific audiences based on their location, device, behavior, interests, and demographics.

Both PPC and SEO have their pros and cons, and they can complement each other in a holistic digital marketing strategy. For example, you can use PPC to test new keywords or products before investing in SEO. You can also use SEO to improve your quality score and lower your CPC for PPC. Ultimately, the best strategy depends on your goals, budget, industry, and competition.

Closing Remarks about Pay-Per-Click Marketing

PPC marketing is a powerful way to reach more customers online and grow your business. By understanding the basics of PPC marketing, its benefits, and how it differs from SEO, you can create effective campaigns that deliver results. If you need help with PPC marketing or any other aspect of digital marketing, contact us today. We are a team of experts who can help you achieve your online goals.

David Halmai, Ads Specialist

David Halmai, B.Comm.

David is a Senior Paid Search Specialist at Clicks Freak, with over 23 years of experience in the Digital Marketing space working with B2B and B2C companies, in a variety of verticals. He is a Google Ads Certified and loves to help others out where possible. His goal is to deliver both consumers and clients the best experiences possible.

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