How Does Pay Per Click Advertising Benefit Your Online Marketing Efforts?
Pay per click advertising, also known as PPC, is one of the most popular ways to market a website or product online. It can bring high conversion rates and significant revenues to your company. You may have heard that it is a pay-for-performance model. What is this pay-for-performance model? How does it work? Keep reading for more information.
The pay-per-click model in advertising has two distinct phases. The first is the bid-based model. In this phase, the advertiser or sponsor makes a bid to be listed in the PPC advertising list. If it is successful in placing in the top three listings, the sponsor will cover the cost of that listing. If it is not able to achieve the first or second listing, then the sponsor will be responsible for making the ad themselves.
This is a simple example of how the pay-per-click works. In this scenario, the advertiser and/or sponsors are aware of the fact that every time someone clicks on their ad, they are charged. They are able to make money off of this. And the best part is, you can make money off of every time!
Another aspect of the pay-per-per-click model deals with the placement of ads. The advertiser would want its keyword to appear on top of the list. A keyword is defined as a specific word or phrase. For example, let’s say that we are marketing a product for pet owners. In our keyword list, we will include the words “pet”, “dog”, “help”, “training”, “house”, “training”, and “owners”.
Each one of these keywords represents a different click through rate. This means that when people search for those keywords, their search engines will pull up our campaign based on the PPC ad clicks. Once people click on those ads, we get paid. Now this is where PPC differs from regular website advertising.
When you advertise with a traditional website advertising agency, your ads are placed on the website along with other ads. You are also required to place an affiliate link (also known as your display network link) in each ad copy. If you have managed to get into some good affiliate programs in the past, then you will find that your PPC campaign is greatly affected by the amount of impressions of those ad copies. If your display network impressions are minimal, then the amount of clicks that you generate per day will be low.
But the pay-per-click model means that you only pay for the number of clicks that your ad received. That means that if there are very few views of your PPC ad, then the cost of your campaign will be zero and therefore you will not need to pay any sort of advertising cost. This is because your PPC campaign will be getting its PPC revenue from the ‘performance’ of your ad. And the better your ad performs, the more clicks your ad gets, and the more money you make from that click, hence your overall cost will be reduced. And this is exactly what makes the PPC advertising such an ideal model for small and medium-sized businesses – the cost is very affordable, but the results are fantastic.
And so when it comes to your overall marketing strategy, a PPC campaign will definitely complement everything else. It will add more hooks to your website, drive more traffic to it and give you an opportunity to expand your brand with the help of PPC advertising. In all, a PPC campaign does not only benefit your company’s revenue, but the success of your entire marketing campaign as well. It is something that should be taken seriously and used with both hands.