Pay Per Click (PPC), also called cost per click, is an internet advertising model used to direct traffic to websites, in which advertisers pay the publisher (typically a website owner) when the ad is clicked. It is defined simply as “the amount spent to get an advertisement clicked
Search engine advertising is one of the most popular forms of PPC. It allows advertisers to bid for ad placement in a search engine's sponsored links when someone searches on a keyword that is related to their business offering. For example, if we bid on the keyword “PPC software,” our ad might show up in the very top spot on the Google results page.
Every time our ad is clicked, sending a visitor to our website, we have to pay the search engine a small fee. When PPC is working correctly, the fee is trivial, because the visit is worth more than what you pay for it. In other words, if we pay $3 for a click, but the click results in a $300 sale, then we’ve made a hefty profit.
A lot goes into building a winning PPC campaign: from researching and selecting the right keywords, to organizing those keywords into well-organized campaigns and ad groups, to setting up PPC landing pages that are optimized for conversions. Search engines reward advertisers who can create relevant, intelligently targeted pay-per-click campaigns by charging them less for ad clicks. If your ads and landing pages are useful and satisfying to users, Google charges you less per click, leading to higher profits for your business. So if you want to start using PPC, it’s important to learn how to do it right.
Keyword research for PPC can be incredibly time-consuming, but it is also incredibly important. Your entire PPC campaign is built around keywords, and the most successful AdWords advertisers continuously grow and refine their PPC keyword list. If you only do keyword research once, when you create your first campaign, you are probably missing out on hundreds of thousands of valuable, long-tail, low-cost and highly relevant keywords that could be driving traffic to your site.
An effective PPC keyword list should be:
Relevant– Of course, you don't want to be paying for Web traffic that has nothing to do with your business. You want to find targeted keywords that will lead to a higher PPC click-through rate, effective cost per click, and increased profits. That means the keywords you bid on should be closely related to the offerings you sell.
Exhaustive – Your keyword research should include not only the most popular and frequently searched terms in your niche, but also to the long tail of search. Long-tail keywords are more specific and less common, but they add up to account for the majority of search-driven traffic. In addition, they are less competitive, and therefore less expensive.
Expansive- PPC is iterative. You want to constantly refine and expand your campaigns, and create an environment in which your keyword list is constantly growing and adapting.
Once you've created your new campaigns, you’ll need to manage them regularly to make sure they continue to be effective. In fact, regular account activity is one of the best predictors of account success. You should be continuously analyzing the performance of your account and making the following adjustments to optimize your campaigns:
You’ll learn more about all of these elements of PPC campaign management as you move forward through the coursework in PPC University.
If you’re ready to get started with PPC, skip ahead to learn how to set up an AdWords account.
If you’ve already got an AdWords account, we suggest you use our FREE AdWords Performance Grader to help you zero in on areas of improvement. In 60 seconds or less, you’ll receive a customized report grading your account performance in 9 key areas, including click-through rate, Quality Score and account activity.