PPC / Pay Per Click Advertising
Before going to this topic lets understand first the terminology that will be used in the topic
CPC (Cost Per Click) – CPC or cost per click is the amount of money advertiser is willing to spend when a user clicks on his ad.
CPM ( Cost Per Thousand Impression) – CPM bidding is the bidding in which the advertisers pay not for click but only when his advertisement is seen. It can be on search engines and also on users websites.
CPA (Cost Per Action ) – Cost Per Action is the amount advertiser is willing to spend when a particular conversion is achieved. Whether it is filling form, or selling item, or downloading something. The desired conversion has to be defined by the advertiser when the campaign is created. Unlike CPC , Advertiser don’t pay just for click on his ad but when his conversion is achieved.
Landing Pages :- Landing pages are the pages of the website which the user will reach when he will click on the website. Landing pages are important in creating campaign because if your keyword is Pink marble and the landing page is Green Marble than your quality score will depreceate.
Quality Score :- Quality Score is calculated by search engine on the basis of the relevancy of website to ad, landing pages and how much useful it is to user after reaching the website. A good quality score can save you lots of bucks while creating campaigns.
Ad Score :- Ad Score is calculated by search engine on basis of which the placement and position of ad is defined. The formula will be explained in the remaining topic
Click Through Rate :- Click through rate is the amount of the clicks received by the advertiser divided by number of impression it actually had. For example on a certain keyword of Green Marble , if the impression on the search engine were 1000 and total clicks were 500, than CTR would be 0.5
Pay Per Click
Pay Per Click or PPC Advertising is the advertising used by advertiser in which he pays either for per click , per impression or for per action. The most common in it is CPC (Cost Per Click). The pay per click campaign consists of steps like
Keyword Research :- The first and foremost thing in PPC Advertising is keyword research. Suppose you are in natural stone industry and you have all the varities of marble and granite. Than only bidding on Green Marble, Pink Marble won’t suffice. The things which matters is to have a thorough research on what people are actually searching. For example if I talk about the stone industry than “Green Marble countertops”, “Black Granite Countertops”, “which is the best marble for flooring” are most searched. So it would be better to bid on these keywords rather than simply on Green Marble.
CPC decision :- All the keywords have advertisers , some have high competition so automatically there CPC would be high, some have low competition and so there CPC would be. The idea is to find those keywods which are less competitive so that CPC is less. Rather than just bidding on Green Marble if we take long term “ Which is the best marble in india” will give more result and amount spend would also be less.
Managing your PPC Campaigns
The following things have to be taken care while managing your PPC Campaigns
Choosing and expanding your keywords :- Expanding your keywords will ultimately grow your business on regular basis.
Place an eye on Landing Pages :- Landing Pages are the most important factor because it will affect your quality score ultimately so keep an eye on Landing Pages. They should be useful to user.
Use of Negative Keywords :- This strategy will help to prevent you to burn your marketing amount because the unnecessary keywords will be wiped away from the campaign.
Remove Unnecessary Costly keywords :- Other than the three it is important to shut the costly keywords which are not giving you any conversion and rather than spend more on keywords which are giving you more conversion.
Splitting Ad Groups :- Splitting ad Group will definitely improve your CTR because when you divide the campaign in modules you can change your landing pages and overall user experience. Per Ad Account can have multiple ad campaign and per ad campaign can have multiple ad group which will lead you to landing pages.
How your ads position will be determined by search Engine :-
Suppose there are four advertisers A, B, C, D. All are bidding for the same keyword i.e “Green Marble”. Advertiser A is willing to pay $3 for per click , Advertiser B $6 , Advertiser C $9 and Advertiser D $12
Suppose the quality score for A is 10, for B is 4, for C is 3 and for D is 1
Search Engine will determine the Ad Score by multiplying CPC to Quality Score
Ad Score = CPC * Quality Score
Keyword = Green Marble