Beginner’s Guide to Google’s Pay-Per-Click Advertising

pay per click advertising

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You may have come across the term pay-per-click advertising (PPC) several times, especially on the internet. You may also have heard of or read an article that promotes it as a must-have for your business. If you’re here because you want to learn more about Google’s popular form of advertisement, then you’ve come to the right place.

This paid advertising form allows you to use digital prime real estate to showcase your ads and target your audience better. We’ll tackle the basic must-knows for beginners, so you can begin leveraging PPC for your business.

 

What is PPC all About?

Pay-per-click advertising is a form of online advertising where advertisers pay whenever their ad gets clicked. It’s really that simple. PPC is a broad term as you can apply it to ads shown on social media and search engines.

The most popular kind of PPC is Google’s paid-search ad. The PPC ads appear when users search for something, especially when buying online, using Google as their search engine. They get to be displayed on the top-most and the right side of the results page.

When a user uses a keyword to search for something related to a business, pay-per-click allows advertisers to bid for their ad placement on a search engine’s sponsored links. For example, if a coffee shop bids on the keyword “coffee shop,” their ads might show on the top of the Google results page whenever someone queries using that keyword.

Whenever users click on the ad, they will be redirected to the shop’s website, and the business will have to pay a small fee. This small fee is a worthy investment since what you get in return to generate leads for your site and convert them is more than what you pay for.

 

How Much Is Pay-Per-Click?

Hearing the benefits of pay-per-click advertising is music to a business owner’s ears, but the million-dollar question is how much does it cost? It’s an understandable question since you’ll want to know if you can afford this advertisement type.

The truth is there is no boxed answer where one size fits all. This may be frustrating to hear, but it depends on several factors, especially since Google Ads is a customizable ad platform.

Google Ads’ Google Search Network’s average cost-per-click is $1 to $2, while Google Display Network is generally less than $1. Most small to medium-sized businesses spend around $9,000 to $10,000 a month on Google Ads, and that’s just the ballpark figure. 

Your pay-per-click advertising costs may depend on several factors such as your chosen industry, your customers’ lifecycles, and the current trends in the market.

However, one of the most significant advantages of Google Ads trumps the costs. And that advantage is that you have complete control over how much and when you spend. You can also increase or decrease your ad spending in real-time. 

 

How Does Pay-Per-Click Work?

Google uses an automated process called Ad Auction that determines the ads’ relevance and validity that appear on their results page. In this system, the advertisers bid on keywords that are relevant to their line of business.

With pay-per-clicks, when a user types in a search query, the search engine’s algorithm determines which ad is displayed and from which advertiser. It does this by searching into the pool of ads and choosing a group of them to appear on its results page’s prominent ad space.

Paying a huge amount of money won’t ensure that your ads will appear first and on top. The appearance of an ad is based on its Ad Rank. This Ad Rank depends on two key factors: your maximum bid and quality score.

That’s the part where some beginners may start to get flustered. Some businesses hire a pay-per-click agency to help them out with their Ad Rank. Or you can also opt to do it on your own. Either way is OK, as long as you are doing it right.

Your maximum bid, or sometimes called CPC bid, is the highest amount you can shell out for a keyword. A quality score is a system that measures how relevant or valuable your ad is to the user’s search query. Quality score is composed of click-through rate, relevance, and landing page. The higher the quality score is, the better ranking an ad will receive.

Some companies would turn to pay-per-click management services to take care of their ads’ quality score. That would mean that they are willing to invest in services that help improve their Ad Rank because the ROI from PPC is worth it.

 

How Do I Start a Pay-Per-Click?

Starting a pay-per-click is easy. However, it entails planning things out before a business owner signs up and creates an account.

Begin by thinking about what you are aiming for with PPC marketing. Determine if you’re using it to sell products or services, drive online traffic to your site, or acquire more subscribers. You can also decide if you’ll be hiring a pay-per-click agency or doing it your way.

Next, you’ll need to start choosing your keywords. Remember to have focused keywords. When you group similar keywords, you’ll be getting very relevant ads.

When thinking about keywords, consider the buyer’s journey. They usually start with a general search then progress into more specific terms like make and models. That’s the part of the buyer’s journey where you know they’re ready to buy. That’s why you should try to bid on specific keywords to increase your chances of making a sale.

Some pay-per-click management services can take care of finding the relevant keywords to your business, so you won’t have to. That will ensure that you’re bidding on the right keywords.

You may then begin formulating ad copies for a limited space. You only get twenty-five characters for the headline, seventy characters of ad text, and thirty-five characters for the display URL. That’s why you must come up with compelling short ads.

After getting all the necessary elements ready, you can now begin in three easy steps. First, you have to create your search ad. Then choose the potential customers that you want to connect with. Lastly, set a daily budget for your ads.

 

Conclusion

Investing in Google’s pay-per-click advertising is a beneficial move for your business. Google has dominated the search engine market, with a 92.05% market share as of February 2021. And since online traffic is composed mainly of search queries, particularly from Google, you can never go wrong with Google’s PPC.

Want to tap into the power of PPC ads for your business? The RxMedia team is standing by to deliver tangible results from your paid ads. Talk to us today about your business and advertising needs by calling 503-974-3300. We would love to hear from you.

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