Pay Per Click 101
So what exactly is PPC? PPC stands for “Pay Per Click” and it has become an effective and scalable way for advertisers to reach their prospects.
There’s a popular analogy that helps explain the value of PPC…
Imagine purchasing a billboard on a busy street in your city. You purchase the billboard in order to get maximum exposure because EVERYBODY driving on the road will see your advertisement, right?
But if you think about it, does everyone driving on that street really need your product or service at that time? Of course they don’t! You have target demographics just like every other business.
Now imagine if you could place a billboard on a street where the ONLY people who were driving on that street were people who not only needed your product or service, but were actually in the late buying stages and were ready to purchase? Well that scenario just explained exactly what PPC does!
PPC puts your message in front of your prospects that are ready to buy at that moment by showing highly targeted ads based on the keywords that the prospect types into Google. So you are putting yourself on that busy street, with a digital billboard that tells the prospect why they should choose you. And the best part is you only pay when someone clicks your ad!
To help you better understand PPC, here are a few terms that you will hear you Google Certified Account Manager talk about when reporting on your campaign:
Clicks = The amount of times a potential customer clicks on your ad
Impressions = The amount of times your ad was shown to potential customers. You do not pay for impressions, only clicks.
Click Through Rate (CTR) = CTR is the just clicks divided by impressions. It gives us the rate that people clicked on your ad, and it’s an important metric that Google uses to make sure your ads are relevant.
Conversions = After someone clicks on your ad, they are directed to your website, where we want them to fill our a contact form or pick up the phone to call. We are able to track these actions and consider them “conversions. Conversions turn into sales, which is the main reason you are advertising!
Average Position = This metric tells you what average position your ad shows when people Google your selected keywords. The first page of Google results holds 10 advertising spots. We always aim to put you in the top 3 positions.
Ad Groups = Rather than take all of your keywords and putting them into 1 campaign, with only 1 ad, it’s better to divide your keywords up based on different products and services into smaller buckets called “Ad Groups”. You can have different ads for different Ad Groups. So the ads for “Product A” will sell prospects on the benefits of “Product A” and no other product. Google appreciates when you make your advertising more efficent for the end user and will reward you with better results.