What is PPC
Updated on 17th Nov, 22 163 Views

The following topics will be covered in this blog:

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What is PPC in Digital Marketing?

It is a Digital Marketing model where the advertisers need to pay a certain amount as fees each time their ads are clicked. The name ‘Pay-per-Click’  is derived from this process itself. Pay as and when one click is received on the ad.

PPC is a paid form of advertising and Digital Marketing and is used by the majority of organizations to enhance their reach and increase website visits.

The fee amount is paid only if the ad is clicked. Basically, this method means buying website visitors. Some of the platforms that offer a Pay per Click facility for advertising are Google Ads, Facebook Ads, and Twitter Ads.

Each time an ad is clicked, the advertiser needs to pay for these ad platforms. The ad platforms do not strike any deal regarding guaranteed visitors and clicks. The only condition that exists between the two parties is to pay for each click.

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Why use PPC?

Even though it is paid marketing, PPC has many advantages of its own. Some of the major reasons why PPC should be used are:

  • Pay per Click is considered to be cost-effective as the number of fees paid for one click is greater than the profit and value the customer brings to the organization.
  • The platforms offer the first result page display for your ad because you are paying for the clicks. It’s a mutual benefit model.
  • PPC helps in building brand image and visibility at a faster pace and at a greater reach. Your ads get more exposure than unpaid marketing and free Digital Marketing tools available.
  • PPC helps in increasing the traffic to your website.
  • PPC allows multiple ad campaigns for a single keyword.
  • An optimized PPC leads to increased click-through rates (CTR).
  • The results offered by PPC are at a fast pace.

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Working on the PPC Model

Keywords form the backbone of the PPC model. When a customer searches for a product or feeds a specific keyword in the search bar, online ads start appearing. When these ads are clicked by the customer, the advertiser pays the fees to the ad platform. Now since keywords form a crucial part of the entire PPC model, the organizations that use PPC create optimized ads with the right keywords.

An ideal keyword to include in your ad is the one that ranks higher and so on. There is a separate model that caters to this process of keyword optimization known as SEO (Search Engine Optimization), which is covered in our blogs on SEO Tools and guides to SEO optimization.

The PPC model works wonders for digital marketers and advertisers as it offers them to reach more customers, draw more attention, enhance visibility, and increased footfalls on the website. While creating a Digital Marketing strategy, organizations include PPC as one of the priority digital marketing tools, because it has been known to give higher rates of returns on marketing investments.

The amount invested in PPC has been proven to fetch profitable customers and increased revenue for organizations.

Not only this, but the PPC model is also beneficial for online marketing platforms as it forms one of the mainstream revenue sources for them. For example, Google Ads offers advertising platforms to millions of organizations and digital marketers across the globe. The amount received from each click directly goes to its kitty.

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Pay-Per-Click Models

So far we talked about how the PPC model works and that the advertisers need to pay a fee for each click. Now let us understand what are the different models on which the fee amount is decided. The two models followed for deciding the fee rate and structure are the Flat rate model and Bid based model. They are discussed below:

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Flat-rate Model

In this type of PPC model, as the name suggests, the fee is fixed at a flat rate. The advertisers pay this fixed amount for the clicks. Usually, the rates differ based on the area of the website. The difference between the rates is decided by the ad platform providers themselves.

The majority of Digital Marketers and organizations use this model because it is cost-effective. Not only this, even the publishers, i.e. the ad platform providers are open to negotiations in cases the organizations wish to engage in long-term contracts.

Bid-based Model

The Bid-based model allows the advertisers to quote their maximum price in an auction. The bidding keeps on going until the publisher agrees to a bidding price using automated tools.

The bidding price is usually agreed upon based on the content quality offered in the advertisement and the rank of the advertiser. Obviously, the higher-ranked advertiser and top-quality content are preferred. The final winner of the bidding is the advertiser who is able to match both these parameters.

Pay-Per-Click Model

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Users of PPC

The below parties are the users of PPC and who have best benefited from it:

  • Small businesses
  • Independent Digital Marketers
  • Digital Marketing Agencies
  • PPC specialists
  • Beginner-level sole proprietors
  • In-house Digital Marketing teams of MNCs
  • Social Media Campaign specialists
  • Ad agencies
  • Content Creators

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Types of PPC Ads

Throughout the blog so far, we have discussed ads multiple times. Now let us understand what are the various types of ads in PPC :

Display Ads

Display Ads refer to those ads which are displayed to those customers or users who have already visited a website before. These ads are displayed to induce the purchasing desire of the customer. Display ads appear to those customers who have shown interest in the same products as the industry the advertiser is in.

Search Ads

Search ads are ads that appear through a keyword typed in the search bar. It is the most common form of PPC advertising. It is known to have helped almost every organization get maximum reach and enhanced visibility.

These ads focus on only the target groups as they appear only when the relevant keywords are searched by the customers. So basically, if a person does not have any intention to buy or search for a product, he will most likely not be seeing search ads cropping up.

Also read: SEO vs. SEM

In-stream Ads

In-stream ads are played in between a video that the customer is seeing. Mostly these types of ads are common on platforms such as YouTube and Facebook where customers watch videos at least once a day.

In-stream ads may sometimes become annoying to customers if played multiple times and this may lead to negative marketing, leading the customer to lose interest in the product. One of the benefits is that the ads remain in the memory of the customers but again, the frequency of ads is very important.

Social Ads

As the name itself suggests, Social Ads are the ads that are put up on social media marketing platforms such as Facebook, LinkedIn, etc. Social media platforms are the next in line when it comes to advertising after search engines.

Since people these days are glued to social media apps, digital marketers and advertisers post Social Ads on these apps so as to increase their reach.

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Google Shopping Ads

These ads mostly pertain to shopping websites and e-commerce companies. If a customer has already purchased from the shopping website or is even new, the ad is displayed on top of a Google search result page.

The ad content includes new offers from the e-commerce company, product details, discounts, etc. to attract the customers into clicking on the ad. This is also considered one of the top revenue sources for the Google Ad platform.

Types of PPC Ads

Also Read: Fundamentals of Digital Marketing

Conclusion

PPC forms the most important part of paid advertising and has helped many organizations achieve their marketing goals. In this blog, all the important information related to PPC has been covered and we hope that it helps you in your digital marketing journey.

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