Here's how PPC advertising works:
Pay Per Click is an advertising model where businesses pay each time a user clicks on their ad. The PPC process involves setting bids on keywords relevant to the target audience. It uses tools (like Google AdWords), to manage and optimize campaigns. Cost-per-click across all industries is $2.69 for search and $0.63 for display.
PPC visitors are 50% more likely to purchase than organic visitors. Advertisers use platforms like Google Ads or Bing Ads to create and manage their ads. These platforms have keyword search tools where advertisers can search for the most relevant terms for their target audience. The bid amount, ad quality, and relevance then determine the ad's placement in search results.
I've used PPC in the past for visibility. Although you can get good conversions with it, the costs also pile up quickly. In this article, I'll explain how PPC, Amazon PPC, and Google PPC works. I'll also discuss PPC keyword search plus 10 of the best PPC practices in 2024. I'll compare PPC with a strategy I developed which uses organic traffic for visibility and ranking.
Ways To Maximize Pay Per Click (Plus Best Practices in 2024)
1. Geographic Targeting: Set parameters to ensure ads appear only in specific areas. The parameter can be set by zip code, city, or region. For example, a pizza restaurant in Chicago can set its ads to appear within a 5-mile radius of its location.
Best Practice: Use AI-powered campaigns to improve conversion rates by up to 25%.
2. Local Keywords: Use relevant keywords that reflect local intent. This involves incorporating location-specific terms and “near me” keywords. You may also include neighborhood or landmark names. Google Keyword Planner can help identify these local keywords and their search volumes.
Best Practice: Bid for local keywords. It increases conversion by 20%. 70% of all Google Ads conversions come from automated bidding.
3. Ad Copy Localization: Specific ad copies with local elements enhance relevance. Include local names in headlines, mention local landmarks, and use local phone numbers.
Best Practice: Use audience segmentation with localized ad copies. Segmented campaigns have 50% higher CTR than non-segmented campaigns.
4. Optimize Ad Scheduling: Local businesses can set their ads to appear during specific times. Schedule ads to run during business hours and increase bids during peak hours.
Best Practice: Focus on video advertising and use responsive search ads (RSAs). Video ads have an average CTR of 1.84%. RSAs deliver up to 10% more conversions compared to standard text ads. These are the highest of all digital ad formats.
Best Practices: Ad extensions increase CTR by up to 15%. Top-performing Google Ads accounts use 4 or more extensions.
Best Practices: Optimize voice, landing pages, and mobile. Voice-based ad revenue is expected to reach $19 billion by 2024. Optimized landing pages have 30% higher conversion rates than those that are not. A 1-second delay in page load time can cause a 7% decrease in conversions. Mobile-friendly ads have 12% higher click-through rates. They account for 63% of paid search clicks.
7. Performance Tracking: Use analytics to measure and improve local campaign performance. Use this to track inquiries and online orders. Monitor which keywords and ad variations perform best for local customers. Adjust your bids and budgets based on performance history.
Best Practice: Maximize first-party data. Campaigns that use first-party data for audience targeting have 33% higher conversion rates.
PPC Agency Owners Share Strategies on How To Get Clients
Mike Mancini is the founder of Mancini Digital. He shares three ways to get PPC clients for a Google Ads agency. First, he suggests offering free services for 30 days to family, friends, or their business connections. Prove your value before charging. He recommends offering referral commissions to get clients. Mike suggests focusing on businesses that already have a marketing budget. Market to HomeAdvisor or Google Ads users. Most DIY marketers poorly manage campaigns. Show them the benefit of improved results and exclusive leads.
Nicke Ponte suggests asking clients upfront about their budget. He advises agency owner to walk away from clients with insufficient funds. He stressed the importance of building a consistent revenue stream through monthly recurring services. This will allow the agency to make long-term decisions and avoid the pressure of chasing low-paying clients.
Darren Taylor gets PPC clients by identifying their needs first. With small businesses, you need to be more hands-on. Big ones, you need to be an expert in your niche. He recommends niching down to specialize in one industry. This builds trust and credibility. Agency owners should ask detailed questions about the client’s business. He stresses the importance of explaining PPC in simple terms.
What is Pay-Per-Click Advertising?
Pay-per-click (PPC) advertising is a digital marketing model where businesses pay a fee each time one of their ads is clicked. It’s a traffic-driving strategy ideal for search and social media advertising platforms.
There’s business potential in pay-per-click advertising. B2B companies spend more on PPC. They allocate around 8.5% of their marketing budget to it. B2C companies only spend around 7.2%. This is because PPC has good ROI. Google Economic Impact Report shows that businesses make $2 for every $1 spent on Google Ads.
How Does Amazon Pay-Per-Click Work?
Amazon pay-per-click starts with keyword research to identify terms with the highest search volume. You can use Amazon’s keyword planner. After selecting keywords, set the budget and bid amount. This determines how often the ads are shown to your target customers. The advertiser then monitors the campaign performance through metrics like click-through rate and conversion rate. The campaign is then optimized through ad bidding, keyword refining, and interesting copies.
Amazon Pay-Per-Click (PPC) focuses on ad placements within Amazon's marketplace. Advertisers bid on keywords related to their products. The ad then appears in strategic places like search results or product detail pages. Effective management significantly boosts sales and return on investment.
How Does Google Pay-Per-Click Work?
Google pay-per-click starts with keyword research with Google's Keyword Planner. The advertiser then sets the maximum cost per click and daily ad budget. The performance is tracked through impressions, CTR, and conversion metrics. Google Pay-Per-Click operates through Google Ads. Advertisers bid on keywords relevant to their target audience. The bidding is part of an auction system that determines ad placement based on bid amount, quality score, and other factors. The bids and keywords are adjusted to optimize performance. This ensures the ads effectively and efficiently reach the right audience. The advertiser continuously manages the PPC campaign by A/B testing the ad copy. Target options are also refined to maximize conversions.
What is PPC Campaign Management?
PPC campaign management oversees and optimizes PPC ads to meet marketing goals. This includes keyword research and bid management. PPC campaign management involves deciding on the right budget to increase visibility. Creating effective ads is one aspect of this process. They should be interesting to attract clicks. Monitoring and analytics are also important in PPC campaign management. Advertisers use Google ads to measure the success of every ad. They also optimize the landing page. Once the customer clicks an ad, he/she is directed to a conversion page.
What is a PPC Keyword Search?
PPC keyword search involves selecting and using keywords that the target customers use in their search. In PPC advertising, the chosen keywords directly affect the visibility and success of ads.
PPC keyword search process:
Develop your personal brand
Get certified
Market to businesses who already have an advertising budget
Create a compelling value proposition
Prioritize client concerns
Foster a reputation for integrity and openness
Generating an initial list of keywords related to your business, products, or services.
Using keyword research tools to gather data on search volume, competition, and CPC.
Evaluating keywords based on relevance, search volume, competition, and potential ROI.
Organizing keywords into tightly themed ad groups for more targeted ads and landing pages.
Choosing appropriate match types for each keyword to control when your ads appear.
Organizing keywords into tightly themed ad groups for more targeted ads and landing pages.
Identifying and adding negative keywords to prevent your ads from showing for irrelevant searches.
Reviewing and refining keyword lists based on performance data.
What is the Role of Keyword in PPC Advertising?
Keywords are the foundation of any PPC campaign. They connect customers looking for the product/service to the advertisers who offer them. Keywords determine when your ads appear in search results. Your ads are visible when the user’s search query matches your chosen keywords. Keywords also help determine the quality score of your PPC ads. A high-quality score lowers CPC and improves ad positioning. Increasing the quality score from 5 to 7 decreases CPC by at least 28%. Keywords also determine how much you'll pay for each click. Different keywords have different levels of competition and, therefore, vary in cost.
What's the Difference Between SEO and PPC?
Between SEO and PPC, SEO is more long-term and sustainable. Search rankings are improved organically. PPC is short-term. It gives immediate results but ends when the budget is depleted. With SEO, a content may take months or years to show up in the search engine. In PPC, advertisers buy instant visibility.
My Low-Maintenance Alternative To PPC Advertising
My low-maintenance alternative to PPC is free advertising through local lead generation. It involves building simple websites for small businesses and ranking them up on Google. Once ranked, sites generate steady passive income through organic leads.
Buying visibility for instant conversion can be expensive. Beginners are prone to mismanaging campaigns. PPC agencies are also saturated. There are a lot of big and established players in this industry. And, they're always the top choice of advertisers. It's hard to convince businesses to trust a new agency with their advertising budget. Google Ads and Facebook Ads are also constantly evolving. You need to continuously learn and adapt to keep up with the recent changes.
Local lead generation is more low maintenance than PPC advertising. Once set up, digital properties continue to generate leads with minimal effort. As your digital properties generate quality leads, businesses seek to maintain their competitive edge. You're a valuable resource for the local business. I've been in the local lead generation business for over a decade. Each of my sites makes at least $2K monthly. I generate at least $52K passive income per month for the sites I own. It's a repeatable business suitable for beginners.
