While advertising through PPC is effective, it’s not always easy for businesses to manage on their own. Many businesses learn the hard way that PPC is not just as simple as placing an ad and seeing a huge influx of new business coming their way.
The success of a PPC campaign depends on several factors from researching keywords, writing ads that searchers will click on, targeting your ads to the right prospects, and ensuring these settings are correct across various campaigns and ad groups. Once you’ve launched your campaign and your ads drive traffic, you’ll also need to ensure the landing pages your clickers are arriving on are properly designed and optimized to convert your new visitors into customers.
This entire process is critical because well-developed and well-targeted ad campaigns perform much better than those that are haphazardly put together and deployed. This is why companies turn to partnering with a PPC agency that will create campaigns on their behalf that will produce more high-quality leads at significantly lower cost.
Google PPC ads consist of a few main elements which a qualified PPC agency should be well-versed in.
- Ad Rank – This is a formula that determines where the ad is placed on the search engine results page. Maximum Bid x Quality Score = Ad Rank.
- Maximum Bid – This is the maximum amount you want to pay per click. We will get into more detail in the next section.
- Quality Score – This is determined by your ad’s CTR (click-through rate), the relevance of your ad copy, and the relevance of your landing page copy for every keyword you’re bidding on.
- CPM (Cost Per Mille) – CPM is the cost per one thousand impressions. This is more common in display ads or even some paid social ads.
Once your PPC agency has mapped out a plan, they look at different campaign types that would most benefit your business. The four most common types are:
- Search Networks – This includes platforms such as Google, Bing, AOL, or even Amazon as well, as their Search Partners. Your ads are displayed to consumers while they are searching for similar information or products based on the keywords you are bidding on.
- Display Network – This has a significantly wide reach because it involves millions of sites that show ads of all types; these ads include text, image, and videos. Unlike Search Network campaigns, Display Networks generally don’t use keyword targeting. Instead, they focus on displaying your ads on similar content or based on audiences and demographics.
- Search Network with Display Opt-In – Think of this option as a combination of the previous two campaign types. It works well because the search engine will automatically determine where ads would be best optimized, so the advertiser doesn’t necessarily have to manage much. However, this might not be the best choice for every business, which is where a PPC agency can help.
- Product Listing Ads – PLAs are linked to shopping campaigns, which can also be created in Google Ads. Your PPC agency will create different groups such as brand, category, etc.
How does PPC work?
The PPC enables businesses to target specific audiences interested in your product or service.
While no two businesses have the same budget or goals, what they have in common is the need to grow their customer base. This is where a PPC agency can be helpful; agency marketing experts can identify which platform is most likely to help you increase conversions.
Google Ads is a popular option for PPC advertising because of the enormous amount of traffic it receives daily. In fact, the number of Google users worldwide is close to four billion!
Google Ads are auctions where advertisers bid on keywords and then pay every time someone clicks on their ad. Before posting an ad though, you will need to do some keyword research. In fact, your entire campaign revolves around keywords so it’s important to identify those with the most business value. Your list should contain keywords that are:
Exhaustive – In addition to including frequently searched keywords, don’t forget to include long-tail keywords. These are terms that are specific to your business or industry.
Relevant – Posting an ad for a global audience will drain your marketing budget quickly. For instance, if you run a daycare center, you wouldn’t advertise to consumers who don’t have children. A PPC agency will take on the time-consuming task of finding targeted keywords with high click-through rates.
From there, users are directed to a landing page with optimized ad copy; they can then either view more about your product or services, contact you, or make purchases. Either way, you’ve now increased your click-through rate, which plays a significant part in your search engine ranking.
Expansive – To make sure the ads continue reaching your desired audience, your PPC agency works to consistently improve campaigns.
Once keywords are entered into your campaign and ads built, they go into a pool with other ads. Then, when users search, Google displays the most relevant ads. Winners rank higher by being more relevant, having higher quality scores, and higher max keyword bids.
The two most common types of Google Ads are “search ads” and “local search ads”, with the second being a subset of the first. Search ads appear above or beside your Google search results whereas Local Search appear in the same locations, but also on maps.
Facebook ads work in a similarly to Google Ads. They are available in either image or video form and advertisers can target the ads to a specific demographic, location, etc. Additionally, they give you the option to install Facebook Pixel, which collects data from users who visit your site.
One feature that sets Facebook ads apart from Google Ads is the option to boost posts. This means you can convert a post on your Facebook business page into an ad.
PPC marketing is especially helpful for time-sensitive campaigns that are either meant to address competitors or target new demographics. Each platform provides different benefits for businesses based on their model and budget. A PPC agency has the expertise to identify how to maximize the power of online advertising.
Are PPC ads worth it?
The short answer is yes, PPC ads and working with a PPC agency are a worthwhile investment for multiple reasons.
- Creating Brand Awareness – PPC ads give your business instant visibility and not just to any audience, but to your target market. On Google, they are placed at the top of search results so users can see your business right away. The key here is to provide a value proposition in the headline and text of your ad.
- Connect With Your Target Audience – There are many benefits that the endless internet space offers businesses. Search engines and social media platforms provides access to demographics, locations, and user interests to guide advertisers on how to target specific users both locally and nationwide.In fact, 75% of online shoppers who find helpful ads are more likely to visit the advertiser’s store.
- Increasing Conversion Rates – Once a user has visited your website, they will start considering making a purchase. The way to take advantage of this opportunity is to add certain words such as “buy” or “purchase” and link the ad directly to the product page. This helps a potential customer save time on searching your website. If they have to click around for too long, you risk losing them to a competitor.
- Driving Profits – Many businesses worry about marketing turning into a money pit, but if done strategically, PPC can offer a higher ROI than other methods. This is primarily because you set a limit on your spend and only pay when someone clicks on your ad; basically, you’re in full control. It’s easy to miscalculate how much to budget for online advertising. Experts at a PPC agency can help you identify relevant search terms for your business so you don’t have to waste any ad spend. They will give you the price of the term and its search volume per term.
- Continuous Improvement – Google and Bing use data to optimize campaigns. Data collection takes time. In most cases, after three months, search engines have enough data to begin automatically optimizing your campaigns. Search engines and social media platforms both provide analytics data showing advertisers what’s working and what isn’t. With this information, your PPC agency can offer advice on how to refine your ads for optimal results.
Why is PPC important for my business?
PPC provides quick results. Additionally, you have a lot of control over targeting, bids, and budget. You can turn ads on or off in an instant. PPC is also a great way to gain insights or test SEO initiatives without waiting six months or more.
But what about SEO? SEO and PPC are complementary. SEO for long-term results and PPC for short. View both as regular, ongoing components in your marketing mix.
Who uses PPC advertising?
Nearly all businesses and industries can make a case for PPC. Determining whether PPC works is a matter of understanding the cost of acquiring a customer versus the value of that customer. Do this by establishing customer lifetime value (LTV).
If you’re a retailer this means averaging out the frequency, purchase value, and number of years you retain customers. For instance, if the average customer buys six widgets from you for $100 over the course of two years, their value is $600. Depending on your costs and profit margins $600 is your break even.
There are a number of factors and strategies determining what you can spend to acquire a customer. Our team is happy to review them with you during a consultation.
How much will PPC cost me?
When using Google Ads for instance, a CPC can range greatly from several cents to several hundreds of dollars per click, depending on your target keyword. PPC agencies offer different pricing models based on client’s needs.
Clients pay a flat rate regardless of the number of hours spent on the campaign. Think of it like a retainer; a PPC agency will work a certain number of hours per week or per month as agreed upon.
Performance based pricing has initiation costs and low base rates but ties agency performance to the rate clients pay. If agencies earn more for clients, they make more.
Performance-based pricing is beneficial for businesses of all sizes and in a variety of industries.
This is where a PPC agency will charge you based on your ad spend. The percentage the agency usually takes is around 10-20%, but can vary depending on the scope of the campaign.
It’s important to note that percentage-based pricing requires a minimum spend, so it might not be the ideal option for companies with smaller budgets.
Charging hourly is probably the simplest pricing model for both the PPC agency and the client. It ensures that you stay on track with your budget and provides flexibility in terms of the number of hours that are spent on your campaign.
However, hourly rate pricing might not be ideal for businesses looking for multiple services like graphic design and landing page generation. In this case, your PPC agency will be able to recommend a different solution.
To determine which pricing model is suitable for your business, your PPC agency will discuss your priorities and goals first. Are you looking for leads or convert a specific audience? Have you considered doing more brand awareness?
PPC specialists work with national and international organizations, giving them a wide scope of experience to create a successful PPC ad campaign.
Why Should I Bring in Experts?
When is hiring an agency worth it. Most commonly, when your business is growing beyond your current capabilities. When it provides more value to hire someone than do the work yourself. When you have decided a team is more valuable than one individual.
Here are a few more reasons why you should bring in PPC experts:
Keep Up With the Latest Trends
Digital marketing is continually changing. Rebrands, new features, and updated advertising policies are constantly being introduced to advertisers. Businesses that don’t stay up-to-date with these changes fall behind the competition.
PPC agencies stay abreast of trends and updates.
Benefit From Detailed Reporting
Measuring results against your goals is one of the main tasks for any PPC expert. Pulling reports from different sources is time-consuming and confusing. Also, misinterpreting the metrics can easily result in an unsuccessful campaign.
PPC agencies know what to look at to move the needle and drive maximum results for minimal cost.
Once a PPC expert has measured the metrics mentioned above, they will discuss with you exactly how the data applies to your business. Whether it’s removing keywords or re-allocating a portion of your budget, a digital marketing professional can help you keep your business’s goals on track.
Access to Various Services
Full service agencies can consolidate everything from website design or content creation to CMO consulting services.
Want to learn more? Contact us today.