Can Pay Per Click advertising (PPC) really help your business? How does it work?
PPC advertising is a simple method of using search engines like Google to deliver qualified prospects to your website. It is cost effective, simple to use and can be started with a very small budget. This article is designed as a simple introduction to PPC advertising but if you would like more help in setting up your own PPC campaign, please check out our services page.
Pay per click advertising is an online advertising model where you only pay when someone clicks on your advertisement and visits your site. It doesn’t matter how many times people see your ad or how often it is displayed – if nobody clicks on it, you pay nothing.
The most common PPC advertising example is Google Adwords. When you type something into Google it searches the web and then displays the pages it thinks are most relevant based on the terms you typed in (your keywords). For example, if you type in ‘tropical fish’ it will give you a list of pages that use the term ‘tropical fish’ in order of relevance and importance.
There are lots of thing that you can do to get your website to the top of the list for keywords and phrases that are relevant to your business – you can find a good introduction to these in our free report on Search Engines in Plain English.
However, search engine optimization takes time and you might be up against some pretty big players.
Google’s PPC advertising lets you buy your way onto the first page of the results in the form of the small text advertisements that you see along the right hand side of the screen, and under the heading ‘sponsored results’.
Opening Your Account
To start a pay per click advertising campaign you will need to set up an account. With Google, you can do that at the Adwords Sign Up Page. Once your account is opened you can create a simple text based advertisement – usually a headline plus two additional short lines, using select keywords, of course.
This is the ad that will be displayed next to your chosen search terms. You will also be able to select which countries your ad will be displayed in. In fact, if you sell to a local market only you can even select a county or city.
Choosing Your Keywords
The next step is choosing the search terms that you want your ad to appear next to. Using our tropical fish example, you might want to show up when someone searches for ‘tropical fish’ or ‘Japanese fighting fish’ or any number of terms.
Before you start typing them in, do your homework and find out the terms that people are searching for – Google has tools to help you do this.
Setting a Budget
The next step is to set a budget – both for the total amount that you are prepared to spend and the amount you are prepared to spend per click. For example, there may be 10 businesses that would all like their ads displayed next to the term ‘tropical fish’. So whose ad does Google put first in the list? Google ranks the ads by combining two factors:
You can decide how much you are prepared to ‘bid’ for your terms starting from a few cents. Based on your business, select an amount that you are willing to pay – it can always to be changed later. At this stage Google will show you your estimated position and the average number of people you will attract each day. If you’ve ‘bid’ $0.10 per click for the term ‘tropical fish’ and attract 10 clicks per day, that’s means you will have spent $1 per day on your ads. If nobody clicks you will have spent nothing. Based on these estimates you can set the maximum amount that you want to spend in any day or month. Once you have reached your budget your ads will simply stop getting displayed.
You will be charged by credit card or direct debit each month for the number of clicks you had.
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Would you like more targeted traffic to your website? Contextual advertising could be the answer you’re looking for, especially if your business targets a specific niche.
It is an online advertising model where relevant ads are displayed on websites or other online media, based on the content that is on that web page. The advertising network searches the page for keywords and then delivers an advertisement that matches those keywords. For example, if you were reading a website about sports – and they use contextual advertisement – then you would only see ads related to sports.
For the advertiser it means that their ads are being displayed on pages related to their products or services. Chances are, if someone is reading that page, they may be interested in that topic – in this case, sports. That increases the chances that they will also be interested in your product or service.
No, pay per click is a model of how you pay for advertising, not how it is displayed. However, in many cases PPC is used alongside contextual ads – for example, Google Adwords and Adsense. When you type something into Google it searches the web and then displays the pages it thinks are most relevant based on the terms you typed in (your keywords). For example, if you type in ‘tropical fish’ it will give you a list of pages that use the term ‘tropical fish’ in order of relevance and importance.
On the right hand side of the results page Google also displays what it calls ‘sponsored results’ – this is Google Adwords and is a perfect example of a contextual ad. The ads that are displayed there are relevant to the keywords that you typed into Google. In this case you would expect to see advertisements related to ‘tropical fish’ – fish tanks, pet shops and the like. Each advertiser chooses the keywords that are appropriate to their advertisements and will only show up when those terms are searched for – i.e. contextual. They only pay however, when someone clicks on that ad – that is PPC.
Google Adwords combines the two – contextual advert and PPC – to great effect and has become one of the world’s largest advertising networks. Adsense is based on the same concept. Adsense allows website publishers to put small bits of code onto their website that deliver Adwords-style ads based on the text that is on the website page. So a page about boxing would have small boxing-related text ads appear on the page. When someone clicks on these ads, the revenue generated is split between Google and the website owner.
Google is certainly not the only advertising network that uses contextual ads and contextual advert does not have to use PPC.
The purpose of contextual advert is simply to make any advertising more relevant to what is on the website. That should mean that advertisers get a better response (and more targeted leads) and customers are not annoyed by irrelevant ads.
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