What Is PPC? The Ultimate Beginners Guide

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By Boost

Friday, 6th August 2021

What is PPC?

Pay-per-click (PPC) advertising, also known as cost per click (CPC), is a form of internet marketing and advertising which involves the payment of money to a website owner, publisher or another business in exchange for displaying an advertisement. 

The main concept behind PPC is that advertisers only pay when the consumer conducts a specific action, which is usually to click an ad. PPC advertising is primarily used on search engines – such as Google AdWords and Yahoo! but can also be utilised on social media platforms such as Facebook and Twitter.

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Why Use PPC?

PPC advertising is more cost effective than other forms of online advertising, as you’re only paying when somebody clicks on your advert. 

Creating a PPC advertising campaign also requires less time and effort than other forms of internet marketing such as SEO and email marketing. In addition, you do not need to be concerned with the quality content from your site being “spammed” by automated bots, which can happen if the same content is posted in many different places on the Internet. If you are looking for a quick, cost-effective way to generate more traffic – and hopefully sales – having a PPC advertising campaign is the way to go.

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How To Use PPC Advertising?

1. To start with, it’s important to set goals for your campaign, as whatever action the public performs will be the part of your advertisement that you pay for. Do you want people to click on the link? Then set this as your goal. 

2. Then you have to decide where you want to place your advertisements. They can be placed on social media sites or on Google AdWords or Microsoft Advertising.

3. When making your advertisements, decide what daily budget you want to set for your chosen keywords.

4. Create your compelling advert, using key words that your target market are likely to search for, to make sure your advert is seen by lots of people.

5.  Keep an eye on how the keywords are performing, and change them when you’ve learned what works. 

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How To Learn From Your Campaign?

Using analytical tools, you can see what demographics were clicking on your advertisements, and therefore you can tailor your future advertisements to aim towards your desired market. 

You can also see which advertisements performed the best and on which page, which also allows you to know for future where you want to place your adverts and what kind of budget you need to set for the future. 

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What Should Your Budget Be?

This is where things can get a little bit more technical, but breaking the formula down can really help you understand how much money you should be putting towards your campaign. 

PPC Budget = (Number of Customers / CR2) / CR1 * CPC

Number of customers = (Revenue / Sales Period) / Average Sale Amount

  • CR1: The amount of people that turn into potential customers after visiting your website.
  • CR2: The close rate of your sales team.

Now that you have all of the elements you need, it’s time to run your PPC advertisement! Remember, nobody gets it perfect first time, it’s important to learn from each advertisement and your success is sure to come. 

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