What is PPC? What is PPC and how does it work?

By | September 27, 2023
What Is PPC

What is PPC  Do you know about PPC, if not then this post can help you.

PPC is a model of digital marketing in which advertisers pay money on every click. In this, you do not have to charge anything for showing advertisements. As soon as someone clicks on your advertisement, then you have to pay. That is why its full form – Pay Per Click (paying money on every click).

A lot more comes inside PPC, about which we will see in which article.

What is PPC ?

PPC means Pay Per Click, in this the advertiser has to pay for the click. That is, if you run your ads campaign and not everyone clicks on other ads, then you do not need to pay any money. You will have to pay for as many clicks as you get.

What Is PPC In Digital Marketing

The main objective of PPC is to bring the visitor to your website. For this reason visitors can buy some product from the website or can sign email.

There are two main platforms to use PPC.

  1. Search Engine
  2. Social Media

Let’s look at both of them in turn.

1. PPC on Search Engines

If you want to ring on a keyword but there is a lot of competition on it, then you can use PPC.

When we run ads on search engines then it is called SEM (Search Engine Marketing). The most popular platform for SEM is the Google search engine.

2. Run PPC Ads Using Social Media

Social media can be a very good medium for PPC. When we run PPC ads on social media then it comes under SMM (Social Media Marketing).

Ads on social media are very economical as compared to search engines. By using SMM, you can do good marketing even in less money.

There are 2 popular platforms for SMM: –

  1. facebook
  2. Instagram

Apart from this, you can also use LinkedIn.

How PPC Ads work?

In this, we will understand how PPC works by taking the example of Google?

Money alone is not enough to get top ranking in search engine. Apart from this, you have to pay attention to Quality Score, bidding, country, keywords etc. By using all these, you can get top ranking even in less money.

1. Bidding

Google Ads uses an auction system. In this the advertiser has to bid for every keyword. The one who has more money, how much ranking or top position he gets.

This process is also very complicated. If you have placed a bid of ₹ 10/- then it is not necessary that you will have to spend that much money for top ranking. Most of the time it is less.

How much has Google bid by the first second number person, then if you have to pay $ 0.01 more for the top position.

Example

The person whose ad is on the second number has placed a bid of $10. You’ll have to spend an additional $10.01 to go above that.

Note – Quality Score plays a very important role in this.

2. Quality Score

With a good quality score, now you can get top ranking even in less money.

The formula for extracting Ad Rank is: –

Ads Rank = (Quality Score) * (Max. CPC)

For good ranking, both quality score and CPC (cost per click) must be good.

CPC means how much money you want to spend on one click.

There is a formula to calculate Actual CPC called “Adword Discounter”.

Actual CPC = (Ad Rank Of Competitor / Your quality score) + $0.01

Actual-CPC-Formula

Actual-CPC-Formula

Some ways to improve Quality Score: –

  1. Choose the right keyword – keywords are a very important step for Quality Score. You have to see which type of keyword is best for your products. For this you have to do keyword research.
  2. Landing Page – The page where you want to send the user is called the landing page. Try that the keywords you have chosen should be in your landing page. From this, Google thinks that the landing page is made for the same keywords.
  3. User Experience – A very important factor is how the user is dealing with your landing page. Or say in other language how is its landing page experience. To increase User Experience, keep the information, load speed etc. of the landing page good. In this, the user does not need to move around much and what you want should be visible in front of him.
  4. Your Heading in Adword – Heading is the thing that the user sees first. With a good Heading, your CTR (Click Through Rate) will increase a lot. Meaning more and more people will click on your ads. Good CTR gives a message to Google that your ads are great and the user is liking them.
  5. Using Negative Keywords – Negative keywords mean on which keywords you do not want to show your ad. This is a very powerful tool that people often forget to use. By using this you can improve your CTR, Conversion, Quality Score.

Importance Of PPC – Why run PPC Ads Campaign?

After this you must be wondering whether you need to run PPC ads?

If this is the case then read below and all your doubts will be cleared.

There are 5 main reasons for running PPC ads: –

  1. Quick Result – If you wish for the result as soon as possible, then PPC can definitely help you. You will start getting results as soon as you run your campaign. It is very difficult to do this with SEO. You have to wait for months for SEO.
  2. Keyword Competition – It happens many times that there is a lot of competition for a keyword, but you still want to rank. In this case also you can use PPC ads.
  3. PPC remains in your complete control – with the help of PPC you can show your ads whenever you want. You set the time and day in it and it will start adding. In this, you can also give budget according to your mind.
  4. Incredible Targeting Option – With the help of PPC, you can show your ad in the city of the country you want. You can even work that what kind of people you see ads, what is their age, how much is their salary etc.
  5. You can easily measure PPC results – With the help of PPC, you can easily track and measure your results. Campaigns can also be optimized easily.

PPC And CPC In Digital Marketing

Sometimes you get confused between PPC and CPC.

PPC – Pay Per Click – This is an advertisement model where you have to pay for each click.

CPC – Cost Per Click – How much money you pay or are ready to pay for PPC is called CPC.

Summary

Learned about PPC in this post of mine. You also saw how the PPC model works and what factors you should keep in mind. With the help of PPC, you can get results quickly. In PPC only money does not matter, apart from that quality socre, keyword etc. also matter a lot.