PPC or pay per click: what it is examples

Most online advertising campaigns, like Google ads, are based on PPC, which stands for "pay-per-click." This model was a real game-changer for advertisers, who had to "shoot in the dark" before putting money into campaigns whose results they couldn't be sure of.

In short, PPC is one of the most important ideas you need to know about digital marketing. But do you know what it is made of, its benefits, and how to use it? Let's see it!

What is PPC?

PPC, which stands for "pay-per-click," is a model for online advertising in which the advertiser pays a set amount or an auction-determined amount. Every time a user clicks on one of their ads to go to their website. A pay-per-click campaign tries to "buy visits" to a certain website, usually to get users to do something specific (register or buy a product, for example).

Even though pay-per-click (PPC) is a very common choice, it is not the only way to pay for online campaigns. So, it should be set apart from other things like:

• PPM stands for "pay per thousand." This means that the advertiser pays a fixed amount every time the ad is shown to a thousand users. Keep in mind that with this model, we don't know how much we'll pay for each visit because those thousand impressions could lead to many clicks, few clicks, or none.
• PPA stands for "Pay Per Acquisition," which means that the advertiser pays every time a user does something, like download an app. So, the connection between cost and goals is even clearer than with PPC.

Some key concepts to understand the PPC

CPC or cost per click

CPC is the amount an advertiser has to pay each time someone clicks on their ad. Here, you can agree on a fixed price for each click or hold an auction. In the second case, the advertiser sets a maximum bid or price that he is willing to pay for each click. The system compares the ad to others based on how good it is and how much the person is willing to pay. The winning ad is shown first.

CTR

"Click through rate" (CTR) is the number of people that’s click on an ad out of the total number who see it. In general, an ad's CTR will go up the better it is.

In some pay per click marketing agency systems, the CTR is used to decide how much an ad costs because the system "rewards" ads with higher quality and, therefore, higher CTR.

Impression

We call each time someone sees an ad an "impression," whether they click on it.

Segmentation

We have much control over who our ads reach when we use the internet. For example, we can divide the people who see our PPC ads into groups based on their age, gender, location, interests, and behaviors, among other things. Also, each pay-per-click platform gives us different options that we can use together to get very accurate results. So, we ensure we only pay for clicks from people who will likely become our customers.

 

Landing page or landing page

When someone clicks on our ad, they go to the landing page. Whether it turns into a customer or leaves in a few seconds depends on how well it is optimized.

The most important things about a good landing page are that it is clear, easy to use, and related to the ad.

Conversion

Conversion is likely the most important metric in a pay-per-click (PPC) campaign because it tells us how well our ad is doing in terms of money. A "conversion" happens when a user clicks on an ad and buys something. Therefore, the Ratio of the number of clicks to the number of conversions is the conversion rate.

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Conversion Ratio = Number of Conversions / Visits to the web.

Frequency

The number of times each ad is shown to a certain user during a certain period. To figure it out, The number of impressions needs to be divided by the number of unique users.

Frequency = Number of Views / Number of Unique Users

Most of the time, the same campaign has more than one effect on a user, and it can be a good idea to ensure he has seen us. But we shouldn't go overboard because that can lead to rejection and a feeling of spam, which is not what we want to happen.