How Does PPC Work?

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You’ve seen ads.  When you have searched for something and it showed you what you were looking for exactly on top but with an ‘ad’ mention on it. That’s how ppc data analysis work for you to rank better!

PPC aka Pay per click ads are paid placements on Google, Bing, Yahoo, Facebook or any search engine and social media.  The simple rule is that the advertisers only have to pay when someone clicks on the ad, which is something clearly explained by the name “pay-per-click.” too.  Pay per click advertising is one of the fastest forms of digital marketing available to businesses.  If customers search for your services and products on Google, Pay per click is most likely to help them find you.

how does ppc work

How does PPC bidding work?

An instant auction takes place when someone does a search query that includes a relevant keyword your advertiser has bid on.  Google’s formula determines placement and cost for different ads based on factors like the advertiser’s maximum bid on the keyword, Ad and landing page quality, the expected ad click-through rate and availability of ad extensions.

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Maximum bid on the keyword

This one speaks for itself.  How much are you willing to pay for your ad bid?  This does not mean that you will pay it but you will just end up paying a little more than comparison to the result that is right below you.

Ad and landing page quality

If you are bidding on “immigration attorney” and sending people to a page about travel agents, your ad will be seen as an irrelevant ad and may not run regardless of your high bid. Likewise, if you are sending people to a page which is covered in ads or it has a poorly-written content, it will ultimately result in affecting your ad rank score.  Since Google tracks user signals, if there is a huge sum of users that click on your ads but then leave your site and return to Google to look on other results, it will make your landing page quality score to suffer.

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Expected click-through rate

No one clicking on your ads is also a dilemma, which will cause your PPC efforts to suffer. Your ad is not being of any value and is also wasting valuable ad space.  Also, Google already predicts the given percentage of users who should be clicking on your ads depending on ad placements. If people end up not clicking on them, there is likely a reason that needs to be sorted out immediately.

How quickly does PPC work?

It all depends on the industry you belong to and it’s varies from industry to industry. Typically, a good Google Ads manager gets a PPC campaign to drive new leads within a few days of initiating a new campaign.  An even better Pay per Click manager will optimize the campaign on a daily basis according to needs which may end up resulting in decreasing costs for the advertiser as the campaign proceeds.

Do people actually click on PPC ads?

The simple answer is yes, they do.  Around 60% of the revenue generated by Google comes from ads. Additionally, there are certain people whose entire lead generation model is based on Pay per Click ads. While you may usually scroll through these results, successful PPC companies’ clients have ads with click-through rates up to 8%.  It would be safe to say in other words that for some searches, at least one out of ten users click on paid results.

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How much do PPC ads cost?

As mentioned above, the cost of a Pay per Click varies from campaign to campaign, and frankly saying, “How much does it cost to run PPC ads?” is a wrong question to ask. The question should be the other way, “how much will it cost to get business with PPC ads?” The cost per click does not really matter but what matters is the cost of getting a new client. It has to deal with an auction, so the cost-per-click will vary based on the bids your competitors have set.

What industries are PPC ads good for?

If your customers search for your products and services on Google than congratulations, your domain is worth testing to run PPC ads.  In case if Google or the internet is not the path that will lead your customers to succeed at their customer journey with you, then you must not waste resources. A doctor owning a personal clinic or a lawyer with a private firm should run PPC ads.  The land attorney that helps people get approval to build new offices would likely be wasting his time by running PPC Ads.

Here is your guide to how PPC works. You can certainly keep it in perspective while reaching out to an agency to run ads for you. for further information, you can read our Guide:

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