2 key formulas for understanding PPC data

What is PPC in digital marketing?

Pay Per Click is a digital marketing model where advertisers pay a fee each time their ad is clicked. Meaning that an ad is only paid for after achieving the desired result. This model is offered by large search engines such as Google as well as social media platforms like Facebook and Twitter. 

PPC ads can appear on many different places such as search engines, social media platforms, and websites, to name but a few. One of the most popular forms of PPC is search engine advertising. This allows advertisers to place their ads in sponsored links when someone performs a search related to a product/ service related to their brand. 

Pay Per Click is mainly based on keywords. These ads appear only when people search for a term that is related to what is being advertised on PPC ads. This makes the model beneficial for both advertisers and publishers as it allows them to focus their efforts on specific audiences and enables them to save substantial costs.

The process of PPC advertising generally looks like this:

• Outlining a specific objective for the campaign 
• Conducting keyword research to find relevant terms 
• Selecting the right audience to target the ads towards 
• Inputting landing page URL 
• Launching the PPC ad in accordance with the above criteria 

Benefits of incorporating PPC in your strategy

PPC advertising comes with many benefits. Some of the key advantages are as follows: 

• Cost effectiveness 
• High search ranking 
• Increased brand exposure & visibility 
• Higher CTR (Click Through Rates) 
• Higher conversion 
• Increased sales revenue 
• Instant traffic 

Two of the most common formulas for Pay Per Click advertising are: 

• Cost Per Click – This formula informs advertisers of the exact cost of every click. A simple formula is used to determine this which is to simply divide the total cost by the number of clicks. 
• Return On Investment – This is a slightly more integral tool in that it doesn’t just calculate the cost required for the campaign, but also what advertisers can get from the campaign. It provides data about the benefits of PPC efforts and generated sales numbers. 

In addition to these two formulas, PPC rates are determined by two definitive models: 

• Flat-rate model – Usually, different rates PPC apply to different areas of a website. In this model, advertisers pay a fixed amount of money for each click. 
• Bid-based model – This model involves different advertisers bidding for an advertising spot, following which an auction is run using automated tools. The rank of the auction is determined by the amount of money bidded as well as the quality of content offered by the advertiser. 

How to do PPC keyword research?

Keyword research is a crucial component of any PPC campaign. Some of the most important things to keep in mind when undertaking keyword research include: 

• Relevance – This implies that the keywords being used must be related to the topic under which your brand/ product falls, so that people can find exactly what they are looking for after searching for that keyword. 
• Long-tail keywords – These types of keywords are a great addition to any PPC strategy. In spite of being less common, they are more specific in nature and account for a large portion of search traffic. 
• Adapting – PPC as a tool is one that requires constant refinement, expansion, and fine tuning to keep up with the latest requirements. Ensuring that your keywords are constantly adapting as per how users are searching can help you stay on top of your game with your plan. 

How to maintain your PPC campaigns? 

A PPC campaign’s effectiveness is highly dependent on stringent management throughout its execution. This involves key steps such as:

• Addition – constantly adding keywords to build relevance towards your brand and its products to bolster the reach of your PPC campaign.
• Subtraction – in contrast to the above step, this simply refers to removing underperforming keywords so as to decrease unwanted expenditure.
• Refinement – continuously reviewing and modifying your landing page to be the best optimized for content and CTAs help retain high conversion rates. 
• Splitting – splitting ads into smaller, more targeted groups, can improve CTR (Click Through Rates) and Quality Score. 

Having understood the fundamentals of PPC campaigns and what it takes to make it successful, the next step is to incorporate the same for your brand. And if PPC services is what you are scouting for, then a PPC agency is what will guide you to what you need. Team Pumpkin is a digital marketing agency that offers PPC services in India. Collaborating with them can drive your brand’s presence on digital platforms to new heights with their smart use of all the necessary PPC tools.