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What is PPC in digital marketing?

What is pay per click in digital marketing? This is a digital marketing model in which advertisers have to pay a certain amount as a fee each time they click on their ads. The name pay-per-click comes from the process itself. Pay when you receive a click on your ad.

PPC is a paid form of advertising and digital marketing and is used by most organizations to improve their reach and increase website traffic.

The amount of the fee is paid only by clicking on the ad. Basically, this method means buying visitors to the website. Some of the platforms that offer the ability to pay per click for advertising are Google AdsFacebook ads and Twitter ads.

Each time an ad is clicked, the advertiser must pay for those ad platforms. Ad platforms do not enter into any transaction in terms of 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?

Although paid marketing, PPC has many advantages of its own. Some of the main reasons why PPC should be used are:

  • Pay-per-click is considered cost-effective because the number of fees paid per click is greater than the profit and value the customer brings to the organization.
  • Platforms offer to show the first page of results for your ad because you pay for clicks. This is a model of mutual benefit.
  • PPC helps build brand image and visibility at a faster pace and greater reach. Your ads get more exposure than unpaid marketing and available free digital marketing tools.
  • PPC helps increase traffic to your website.
  • PPC allows multiple ad campaigns for a single keyword.
  • Optimized PPC leads to increased clickthrough rate (CTR)
  • The results offered by PPC are fast.

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Work on the PPC model

Keywords form the backbone of the PPC model. When a customer searches for a product or enters a specific keyword in the search bar, online ads begin to appear. When a customer clicks on these ads, the advertiser pays the ad platform fees. Now that keywords form a crucial part of the entire PPC model, organizations that use PPC are creating optimized ads with the right keywords.

The ideal keyword to include in your ad is the one that ranks higher, and so on. There is a separate model that takes care of this keyword optimization process, known as SEO (search engine optimization), which is covered in our blogs about SEO tools and guides for SEO optimization.

The PPC model works wonders for digital retailers and advertisers as it offers them to reach more customers, attracting more attention, improved visibility and increased website traffic. While developing a digital marketing strategy, organizations include PPC as one of the priority tools for digital marketing, as it is known to provide higher levels of return on marketing investment.

It has been proven that the amount invested in PPC attracts profitable customers and increases revenues for organizations.

Not only that, but the PPC model is also useful for online marketing platforms, as it forms one of the main sources of revenue for them. For example, Google Ads offers advertising platforms to millions of organizations and digital retailers around the world. The amount received from each click goes directly to his kitten.

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Pay-per-click models

So far, we’ve talked about how the PPC model works and that advertisers have to pay a fee for each click. Now let’s find out what are the different models for which the amount of the fee is determined. The two models followed to determine the rate and fee structure are the fixed rate model and the bid-based model. These are discussed below:

Fixed rate model

With this type of PPC model, as the name suggests, the fee is fixed at a fixed rate. Advertisers pay this fixed amount for clicks. Prices usually vary depending on the area of ​​the website. The difference between the prices is determined by the suppliers of the advertising platform.

Most digital marketers and organizations use this model because it is cost effective. Not only that, even the publishers, ie. advertising platform providers are open to negotiation in cases where organizations wish to commit to long-term contracts.

Offer-based model

The bid-based model allows advertisers to quote their maximum auction price. Bidding continues until the publisher agrees to a bid using automated tools.

Usually the auction price is negotiated based on the quality of the content offered in the ad and the rank of the advertiser. Obviously, higher-ranking advertisers and high-quality content are preferred. The ultimate winner in the bidding is the advertiser who is able to meet both parameters.

Pay-per-click model

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PPC users

The following countries are PPC users and make the most of it:

  • Small businesses
  • Independent digital retailers
  • Digital marketing agencies
  • PPC specialists
  • Sole traders at the entry level
  • Internal teams for digital marketing of TNCs
  • Social media campaign specialists
  • Advertising agencies
  • Content creators

Types of PPC ads

We’ve discussed ads several times throughout the blog. Now let’s find out what the different types of PPC ads are:

Display ads

Display ads refer to those ads that appear to those customers or users who have visited a website before. These ads are displayed to arouse the customer’s desire to buy. Display ads are shown to those customers who are interested in the same products as the advertiser’s industry.

Search for ads

Search ads are ads that appear on a keyword entered in the search bar. This is the most common form of PPC advertising. It is known to have helped almost every organization get maximum coverage and improved visibility.

These ads focus only on the target groups, as they only appear when relevant keywords are searched by customers. So in general, if a person has no intention of buying or looking for a product, he will most likely not see ads when searching.

Ads in the stream

In-stream ads play between videos that the customer sees. Mostly, these types of ads are common on platforms like YouTube and Facebook, where customers watch videos at least once a day.

In-stream ads can sometimes become annoying to customers if they are played several times, and this can lead to negative marketing, leading to a loss of customer interest in the product. One of the advantages is that the ads remain in the memory of customers, but again the frequency of ads is very important.

Social advertising

As the name suggests, social ads are ads that run on social media platforms such as Facebook, LinkedIn, etc. Social media platforms are next in line when it comes to search engine advertising.

As people are glued to social media applications these days, digital marketers and advertisers are posting social ads in these applications to increase their reach.

Ads in Google Shopping

These ads are primarily for shopping websites and e-commerce companies. If a customer has already purchased from the shopping website or is even new, the ad appears at the top of the Google search results page.

Advertising content includes new offers from the e-commerce company, product details, discounts, etc. to entice customers to click on the ad. It is also considered one of the best sources of revenue for Google’s advertising platform.

Types of PPC ads

Conclusion

PPC is the most important part of paid advertising and has helped many organizations achieve their marketing goals. This blog covers all the important information related to PPC, and we hope it will help you in your digital marketing.

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