Pay Per Click Management: The Basics
What is pay per click?
In the very near history, advertiser used to pay newspapers and magazine to place their advertisement to readers. The more a newspaper sold, the higher the advertisement price. It’s a pretty straight forward idea. Most of us are aware how it used to work. Today, the same idea applies on the digital world. It is called Pay per click (PPC) also known as Cost per click (CPC). The only difference is with online content, you already know how many people are going to “use” or “click” on your advertisement. You’re no longer paying for people to see your advertisement. You’re only paying for people who get to your website, or online shop or social media page, not only those who see it.
Why pay per click?
Pay per click or PPC is an internet advertising model. You place an ad on a website or a network of publishers. Then you pay that website when the ad is clicked. There are several other advertising methods. These include cost per impression, sponsored ads or cost per order. Pay per click however has an advantage over these types of advertisement, the obvious advantage is that you only pay when a user clicks. It is also a very good measurement tool to understand if the advertisement has been effective. Each of these advertising models has its objective. If the objective is to drive traffic to a website then pay per click is the one to go for.
How does pay per click work?
When we advertised before pay per click, we used to look at the potential customer’s behavior and design the advertisement campaign accordingly. We used to study the potential customer’s interest with surveys and research, but today we can do that just by looking at their search words on the internet. Or by finding out which pages they visit and what content they like to see. With traditional advertising we also studies the intent of purchase. Today, if we know that a customer is searching for price, for example, then that means if they found your website they are most likely buying from you. The same goes for location, with pay per click you can control your ads to show them only to the potential customers in a specific location.
That means, if you are a cup cakes shop, you can place a pay per click ad on a food blog. Now there is a potential customer that uses the keyword cup cakes in your area and they land on the food blog and see your ad, they are more likely to click on it. This will take them to your website. If your goal is to only to generate traffic, then you’re done. But let’s say that your goal is to sell cup cakes online. Then you need to consider the design of your page, that will get this customer to buy. We can also help you there. I have another blog post about web design that explains this further.
Pay Per Click models
There are two basic models for PPC or pay per click. These are flat-rate PPC or bid-based PPC. With flat-rate pay per click, you as a company owner will reach an agreement with a website or a publisher for a flate-rate per click. Each time a visitor clicks on the ad they get paid that flat-rate. In this model its up to you to decide where to place an ad. If you believe that a specific page will have more valuable users then you can choose only to place your ads there.
The second type of pay per click ads is the bid-based pay per click. In this model, you bid for your advertisement to show on one of the dedicated spots among a network of puclishers or on a search engine. For example, every time someone visits that food blog, an automatic bid takes place, the winner of the bid gets the ad spot and their ad becomes displayed for that user. So how do you win a bid? Through a bidding system you define how much you’re willing to pay for that spot among several other criteria. If yours is the highest ranking ad, it will be displayed. This can also be done with search engines. When you enter a keyword and see the first two results being displayed are ads. The most common bidding takes place over Google and Bing. In addition Google’s AdWords and AdSense networks are the most common for bidding on pay per click ads.
Pay per click is one of the most challenging and time consuming tasks that you need to tackle to grow your business. Yet, it is one of those strategies that offer significant growth and change. But don’t worry, you don’t have to do all the work yourself. You can leave the hard work for us. Go over this page to learn more about Brand Nova Digital pay per click management.