Pay Per Click marketing enables you to advertise on Google and other websites including Facebook, getting your message out to a vast audience of internet searchers. Conducting PPC marketing with say Google requires using Google's advertising platform, AdWords.Contact US
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Pay Per Click marketing enables you to advertise on Google and other websites including Facebook, getting your message out to a vast audience of internet searchers. Conducting PPC marketing with say Google requires using Google's advertising platform, AdWords.
A great PPC campaign requires lot's of work and a keen eye to ensure you are getting the most value out of you clicks.
AdWords is Google's pay-per-click (PPC) advertising platform and main source of revenue. In PPC Google marketing, advertisers use AdWords to bid on the keywords they want to trigger their sponsored ads. Google chooses ads to be displayed and the ads' position based on each user's maximum bid and Quality Score. Quality Score is determined by factors like:
- Relevance of ad copy to the keyword
- Relevance of the ad to its corresponding landing page
- The ad's click-through rate (CTR)
- Historical account performance
- Other relevance and performance factors
Below is a Google search for "Hawaiian Cruises" the top three listings on the left and all the listings on the right are Sponsored Ads i.e.. they're in business with Google through PPC.
If you’re trying to master PPC, you need a solid understanding of Quality Score. That’s because your Quality Scores have enormous influence over the cost and effectiveness of your paid search campaigns. Just as your credit score can affect whether or not you qualify for a loan and how high your interest rate is, Google Quality Score affects how your PPC ads perform and how much you pay for each click.
A quality Score is Google's rating of the quality and relevance of both your keywords and PPC ads. It is used to determine your cost per click (CPC) and multiplied by your maximum bid to determine your ad rank in the ad auction process. Your Quality Score depends on multiple factors, including:
- Your click-through rate (CTR).
- The relevance of each keyword to its ad group.
- Landing page quality and relevance.
- The relevance of your ad text .
- Your historical AdWords account performance.
No one outside of Google knows exactly how much each factor “weighs” in the Quality Score algorithm, but we do know that click-through rate is the most important component. When more people who see your ad click it, that’s a strong indication to Google that your ads are relevant and helpful to users. Accordingly, Google rewards you with:
- Higherad rankings
Achieving a high click through rate is essential to your PPC success, because it directly affects both your Quality Score and how much you pay every time someone clicks your search ad. Are your click-through rates holding you back, or are they high enough?
As mentioned above, PPC click-through rate is the rate at which your PPC ads are clicked. This number is the percentage of people who view your ad (impressions) and then actually go on to click the ad (clicks). The formula for CTR looks like this:
(Total Clicks on Ad) / (Total Impressions) = Click Through Rate
Cost Per Click (CPC) refers to the actual price you pay for each click in your pay-per-click (PPC) marketing campaigns. In this lesson you'll learn:
- A more thorough definition of cost per click.
- Why CPC is important to you and your PPC campaigns.
- How to lower your cost per click while maintaining (or even improving) traffic and conversion levels.
A "click" on one of your PPC text ads represents a visit, or an interaction with your company's product or service offering. Every click in a PPC campaign represents attention from a person who is searching for something that you offer. This attention is what you're buying, as an advertiser, so it's important to note two factors:
- What type of attention you’re going after, and
- How much you’re paying for it.
How Is Cost Per Click Calculated?
Above is the actual formula for cost per click in AdWords.
Cost per action (CPA) – sometimes referred to as cost per acquisition – is a metric that measures how much your business pays in order to attain a conversion. Generally, your CPA will be higher than your cost per click, or CPC, because not everyone who clicks your ad will go on to complete your desired action, whether it’s making a purchase or filling out a form to become a lead. Cost per action takes into account the number of ad clicks you need before someone converts – in order words, improving your conversion rate will lower your CPA.
So, what determines your CPA? Like most things PPC, your CPA is directly affected by your Quality Score, Google’s all-important metric based on the quality of your keywords, ads, and landing pages. In general, the higher your Quality Score, the lower your costs – in fact, for each point your score is above the average Quality Score of 5, your CPA will drop about 16%.
Keeping your Quality Score high and your CPA low can be a huge benefit to your PPC budget over time, giving you the opportunity to buy more exposure in the online advertising space and optimize the number of conversions that come from your ad spend.