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What Is Pay Per Click Advertising

Pay-Per-Click (PPC) advertising is a popular type of paid online advertising which is offered by search engines (Google, Bing and Yahoo), social media (Facebook) as well as by many online advertising networks that will distribute your PPC ads all over the internet including in designated areas of other people’s email accounts.

With PPC advertising, you are charged only when someone clicks on your ad to view your online business or marketing campaign and not when your ad is just being displayed in the paid advertising section on the search engine results pages (SERP’s) or anywhere else.

PPC can generate lots of online traffic really fast. Many people prefer to get traffic fast to their online business or marketing campaigns using paid advertising methods (like PPC) to “test” and see how “responsive” the market might possibly be rather than waiting around to get free traffic using SEO (search engine optimization) methods. SEO traffic can take much longer for it to come to fruition, especially in markets which are highly competitive for keywords that you are trying to organically rank for.

(to see our 60+ traffic sources to start getting traffic fast to your online business or marketing campaign click on Traffic Sources For Your Website)

PPC advertising is very flexible. You can have your ads do any of the following:

  • Displayed (24/7)
  • Certain Days or Times of the Week
  • Countries You Want to Target
  • Keyword Matching (see below)
  • Plus More Options!

Keywords

Keywords are the backbone for igniting your PPC advertising campaigns. Choosing keywords that are targeted and relevant to whatever you’re promoting or selling will greatly help in having a successful campaign. As a result, this can help to produce a higher click-through rate, higher conversions and a higher ROI (return on investment).

You can choose how many keywords you want to use in your PPC advertising campaign which can be done by building a keyword list (be it a dozen, or hundreds of them).

Tip: Your keyword list should be evaluated and optimized periodically by adding new promising keywords to it and eliminating the ones that are underperforming.

Keyword Matching

You can choose the keyword match types as to when you want your ads to be displayed for PPC advertising.

As a basic example, let’s use the keywords “Blue Shoes” to see how your ads would be displayed according to the following keyword match types.

  • Broad Match

Your ad would be displayed for:Buy Blue Shoes,” “Blue Dress Shoes,” “Blue Shoes on Sale, etc. With broad match, your keywords can be placed in any order as well as having additional words placed before, in between, or after them by the advertising entity. As stated by Google, “broad match allows your ad to be displayed for keyword variations including similar phrases, singular or plural forms, misspellings, synonyms, stemmings (such as floor and flooring), related searches, and other relevant variations.” Broad match will cast the widest net in getting you the most PPC traffic, but it will not be as targeted as compared to phrase match or exact match.

  • Phrase Match

Your ad would be displayed for: Buy Blue Shoes” or “Blue Shoes on Sale, etc. With phrase match, your keywords will be placed in the exact order. The advertising entity can place additional words either before or after your keywords, but not in between them. Phrase match also allows your ad to be displayed for close keyword variations (see note below). With phase match, you will get PPC traffic that is more targeted than broad match, but not as targeted as exact match.

  • Exact Match

Your ad would be displayed for: “Blue Shoes” or “Blue Shoe’s” and other close keyword variations (see note below). With exact match, your keywords will be placed in the exact order. But, unlike the other match types, no additional words will be placed before, in between, or after your keywords by the advertising entity. With exact match, you will get the highest level of targeted PPC traffic as compared to broad match or phrase match.

Note: As stated by Google, when using either phrase match or exact match, close keyword variations include: “misspellings, singular and plural forms, acronyms, stemmings (such as floor and flooring), abbreviations, and accents.”

TIP: With using exact match (as opposed to broad match or phrase match) your click-through rate (CTR) will generally be the highest because your ads will include very relevant and targeted keywords that searchers are searching for.

Tip: use negative keywords to remove keywords that are not relevant to your PPC advertising campaign. For example, if you sell only “mens shoes” than add a negative keyword for “womens shoes” so that your ad won’t be triggered if someone types in “womens shoes” in the search box.

(to learn more about keywords click on Learn How to Use Keywords)

Keyword PPC Ad Cost

Each keyword comes with its own cost that you can openly bid on to have your ad considered to be displayed on the internet.

Some of the factors that determine the cost for a particular keyword include:

  • Quality of Search Engines (first-tier vs. second-tier)
  • Supply (competition) and Demand (searches) of Keywords
  • Long Tail Keywords (cheaper bids)
  • Quality Score by Search Engines. Factors such as anticipated click-through rate, relevance of ad & customer’s experience to your site can all influence the quality score of 1 to 10… with 10 being the highest score. The higher the score, the greater chance of paying less for pay-per-click since the searcher (customer) is more likely to have a good experience.

In addition, the cost of keywords having similar meanings can range differently in price. For example, “cheap tickets” vs “discount tickets” vs “inexpensive tickets” can all have different prices from one another.

When bidding on keywords, you can have all of your keywords placed in an ad group which can be set to the same max PPC bid amount (the most you will pay for a click, but can be less than the max bid since all you have to do is pay just enough to beat out all the other competing bids) or you can use individual bid amounts for each keyword… any way you choose, the bidding process is very flexible and easy to use.

PPC Ad Budget

Set a daily budget for your PPC ad campaign. Otherwise, if your ad is not converting profitably and you let the ad campaign run without any daily budget limits this may result in unwanted financial losses.

Setting a daily budget will depend on your financial situation. Can you afford a $10 daily budget? This comes out to $300 a month. A $20 daily budget equals $600 a month, so on and so forth.

As long as you are making a satisfying net profit on your PPC ad campaign than it’s worthwhile to keep it running. For example, if you spend $500 per month to earn $1,500 per month in revenues (or more) on a PPC advertising campaign than it’s profitable with a net profit of $1,000 per month.

Tip: It is highly recommended to test your advertising campaign first with a limited amount of funds to see if whether or not the ad campaign is going to convert profitably before committing larger funds to it (scaling it up) in the hopes of earning even bigger profits.