What PPC Marketing Is & How It Works

What PPC Marketing Is & How It Works

Are you looking for the quickest way to increase sales and drive a lot of traffic to your business website?

Pay-Per-Click (PPC) is the fastest way to do this!

In this post, we will tell you all you need to know about PPC and guide you on how it targets customers in real-time, taking your business to another level.

Let us get started!

What is PPC?

Have you ever wondered about those sponsored ads that pop up every time you use the Google search engine? 

Yes, you guessed it right! It is Pay-per-click marketing.

Pay-per-click marketing is a way of advertising which involves generating visitors to your website by paying for them; the visitors are not earned naturally. You place a bid to appear when consumers look up specific terms and keywords. Each time someone clicks on the ad, you pay for it.

It’s simply a way of ‘buying’ internet views in addition to attracting traffic to websites.

PPC is used to achieve a variety of marketing initiatives, including:

  • Increasing brand recognition
  • Boosting sales
  • Obtaining leads

For starters, understanding PPC is quite tricky.  Developing a solid PPC marketing strategy is crucial, and for that, you need to know advertising formats, keywords and acronyms, and ad networks.

You need not worry! 

Before you start using it, we will make sure you know all about PPC advertising.

Let’s see how it works!


How Does PPC Marketing Work?

It is called “pay per click” for a reason. 

This is how it works:

Every time someone clicks on your advertisement, the search engine sends a visitor to your website. You pay a small fee to the search engine. Suppose your PPC campaign is well-designed and performing successfully. In that case, the price will be insignificant because the visit is more valuable to your business than the amount you invest in getting visitors.

For example, paying $5 for a sale of $250 would be no big deal.

Relevance matters in PPC. 

People are searching for certain products, services, and data all the time. Advertisers may present a targeted ad at the same instant this search is taking place. For instance, if a user searches for a “red hoodie”, the marketer will display an ad about a red hoodie.


What Are the Most Common PPC Types?

PPC works the same way the economy does.

It is a broader term covering a wide range of sites and platforms. It can be broken down into two major categories:

  • Google ads
  • Social media ads

Let’s take a look at how both of these ads work:

Google PPC Ads

When you run a PPC campaign with Google, you pay to display your adverts at the top or bottom of the conventional organic search. Thanks to Google’s search network, Ads can also be shown on other websites.

You pay the current Cost Per Click whenever the customers tap on your advertisement. Several factors influence the Cost Per Click (CPC). The most important factors are the volume and competitiveness for the specified key term. 

To assess the quality of your ad, Google utilises a scoring system based on the relevance of the ad to the keywords, the relevance of the landing page, and the click-through rate (the number of people who clicked your ad) all contribute to the overall score.

For example, if you want your ad to appear when people search for “red hoodie”, you will have to pay a considerably higher significant amount per click in comparison to a search for “red hoodie in Miami”. The latter is keyword-driven towards a local market, whereas the former is a more commonly googled vital term.

Google keeps running your advertisements until it has received enough clicks to empty your daily spending limit. Right now, Google will cease showing your advertisement until the next day or until you pay an additional amount. 

Google displays ads in the following ways:

  • Local Ads – Local advertisements, often known as geo-targeted ads, vary from standard search ads. These advertisements are targeted at people in a specific region, users looking for companies in your area, or users using Google Maps. 

They can also direct consumers to your Google My Business page, a profile of your information that influences what appears in local Google searches, Maps, and other services.

  • Search Ads – Companies worldwide use search advertising because they are the most popular, visible, and effective kind of PPC.
  • Display Ads (Google Display Network) – Google Display Network lets you control where and when your ad appears depending on the characteristics of your target audience, such as personal interests, age, or gender. 

This suggests that your ad may show on the sites linked to your business or to visitors who meet the conditions you’ve set.

Setting up a display plan entails creating creative themes for the ad type you select, identifying the people you want to reach, and budgeting the same way you would for search advertisements.

  • Retargeting – Retargeting is a type of paid advertising used to re-engage viewers who have already browsed your web page or social networks. 
  • Remarketing – Remarketing is a type of email marketing used to re-engage prior clients who have already engaged in a business with you.
  • Youtube Ads – Google Ads manages the ads that appear on YouTube. They are streamed before, during, and after the videos you watch. They will be targeted, like any other ad, depending on a user’s prior behaviour and interests, as well as the subject of the clip-on on which they appear. 

Because the terms are less costly to target on YouTube than in standard Google Search, it’s a wonderful ad alternative. On YouTube, clicks cost a minimum of $0.06 per click, against $1-2 for Google Search.


Web admins use this application to display Advertising ads on their websites. They get compensated when people click on the advertisements.

Social PPC Ads

On social media, you can target your services to the audience through PPC advertisements when they are scrolling, not when they are searching for something on Google. Facebook is the most significant player in social media advertising. Ads on Facebook (and by default, Instagram, which Facebook owns) include many targeting possibilities and are ideal for B2C and eCommerce businesses. For B2B companies, LinkedIn enables improved audience targeting, but it is costlier than Google or Facebook.


Get The Most Out of the PPC

Google Ads makes it simple to get started, but if you don’t take a moment to plan, you might end up wasting a lot of money. Before you begin using Google Ads, you need to develop a strategy. Without an effective strategy, you might not be able to reap the best benefits of Google Ads. 

Here’s a quick guide to getting you heading in the right direction.

Know Your Goals

Every campaign you design should include a target to see how well your efforts are working.

What is the purpose of this campaign? Are you only attempting to raise brand awareness? Do you require additional leads? Is it true that conversions are the most crucial factor? 

Defining the campaign’s goal impacts the ad strategy you employ.

Know Your Audience

Take on the role of the people you’re trying to reach with your campaign. When creating keywords and ad text, conduct your homework and use words and terms your target audience would type into a search engine. Customise your ad wording to meet those requirements. 

Make sure the website your users are sent to is relevant to their search and reflects your ad claims.

Not only will this enhance your KPM (Key performance metrics) and ROI (return on investment), but Google Ads will also award you for offering the most relevant content. This means reduced net CPC and more clicks/impressions for the same budget.

Evaluate Your Progress

There are a few factors to consider:

Ensure that tracking codes for Digital Marketing, Search Engine Marketing, and Webmaster Tools are installed on the site.

Make sure Search Engine optimisation, Ads, and Keyword Research are linked together.

These factors, when combined, enable you to follow people from beginning to end and credit customers/conversions to your adverts. Knowing what phrases visitors are looking for, where they are originating from, and what they want to do when they get to your site is critical to your campaign’s success. Working with clean data is crucial.

Continual review of your campaign analytics will identify advertisements and keywords that, depending on their success, you may wish to halt, alter, or promote with more funding.

Structure Your Campaign

Keep things basic yet specific to the objectives you set forth above. Ad Groups are distinct groups of keywords that make up each campaign. These are the areas where your advertisements will be shown.

An ad group is a collection of advertising and the keywords they should be served.

For example, suppose you were conducting a campaign to promote a particular hoodie. In that case, you’d want to create an ad group with terms connected to the hoodie and another with keywords relevant to winter tops.

Ad groups employ three different sorts of keywords: 

Phrase Match 

Using phrase match, the search must include the keyword you provide, but it can consist of keywords either during the phrase. If your phrase match keyword was “red hoodie ladies,” for example, your ad might appear if someone searched “buy red women’s hoodies near me,” but not “buy women’s red hoodies near me,” because the phrase is split by the word “red.” These key terms are a good middle ground as they attract a more specialised, more eligible audience than broad match keywords.

Broad Match

All keywords are allocated to the standard match type of Broad Match. Your advertisements may appear on searches containing spelling errors, synonyms, related searches, and other related variations of the term or phrase you’re targeting if you utilise broad match keywords. 

Someone looking for “purchase females hoodies” can come across your ad if your term is “red hoodie.” These keywords have a lot of monthly traffic, but they’re also more competitive and non-specific, which means your ad is more likely to be seen by unqualified customers.

Exact Match

The searcher’s query must almost perfectly match your term for the ad to appear. These keywords usually have the cheapest cost per click, but they also have the fewest searches. 

Such keywords should be used only once your account has a large amount of data. Only the most suited visitors see and click on your ad this way.

Google Quality Score

Your Google quality score is the most important indicator to monitor. Google determines your quality score depending on the following factors:

  • Your click-through rate is high (CTR).
  • The importance of each keyword concerning its ad group.
  • The quality and relevancy of the landing page.
  • Your ad text’s effectiveness.
  • The success of your AdWords account in the past.

Expected Outcomes of PPC Marketing:

Does pay-per-click work?

It does!

In most circumstances, you will realise that pay-per-click marketing is ideal for your organisation within 2 to 4 months.

PPC advertising, when utilised correctly, can be a very efficient approach to achieving new viewers and attracting new consumers. 

Google has released data demonstrating the overall performance of Google Ads. They claim that a company obtains five more organic clicks with every ad click. If done correctly, PPC advertisements may be utilised by practically any business to improve marketing ROI. 

So, now that you’ve learned the fundamentals of Google Ads and PPC advertising, you can get a head start on building your brand’s digital sponsored presence!



Is Pay-Per-Click (PPC) advertising expensive?

PPC can be costly at times, but it all depends on the investment quality, just like any other kind of advertising.

What Is Pay Per Click Management and How Does It Work?

You could have more important things to accomplish than monitor your PPC advertising. If that’s the case, you should hire a skilled digital marketing company to handle your pay-per-click advertising.

Get started with pay-per-click marketing right away!Google ads management services

google ads course

Google Ads expert, conversion optimisation consultant and digital marketing coach. Abbie has almost 8 years of experience working with hundreds of businesses and thousands of paid ad campaigns to super-charge growth and ROI.
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