When we talk about Pay-per-Click (PPC) marketing, we are mostly considering Google AdWords. Statistics from Serpwatch shows that Google owns more than 73% of the search market, and its campaigns reach more than 90% of internet users on a global level.
Over 1.2 million businesses and 1 million websites are part of the Google search and display network. To get the best out of PPC advertising and use it to grow your business, you need to understand how search engine ads work, especially Google AdWords.
What is PPC?
PPC is a type of internet marketing that permits advertisers to bid on specific keywords that users are searching for through search engines, and to have their ads displayed on the search engine results page when the right keywords are met.
With this form of marketing, you only pay a certain fee anytime your ad gets a click. It is among the oldest and most effective ways of internet marketing still in existence. When done correctly, PPC can effectively drive traffic to your website at a meager sum and increase your sales.
A case study carried out on a B2B advertising company for 10 weeks showed an increase in website traffic by 17% and sales by 136% using just PPC ads. That is why over 78% of marketers are actively using Google ads to get their message out to the right audience.
In 2014, search ads made up 39% of the total internet advertising revenue, which is worth over $9.1 billion.
Understanding how advertising platforms like Google AdWords work is paramount if you wish to get the best result with your PPC advertising campaign.
How PPC Works?
Considering that 98% of users will always choose businesses that are on the first page of search results and that sponsored ads get two out of every three clicks, the goal of every PPC marketing campaign is to appear on the first page of Google and other search engines results pages.
First, you determine what keywords you wish to bid on related to your product or services, and then you select a price you want to place on each keyword. When a user runs a search with keywords that match the ones you bid on, the ad auction begins, where several other ads are compared to yours to determine which has more relevant content that would be beneficial to the user.
The ad auction is a process used by most search engines to determine the relevance of an ad. It is what will determine your ad rank, and your ad rank is what decides where and if your ads will appear in the search engine results.
With the system above, we can see that it doesn’t matter how much you bid on a particular keyword. When you have a low-quality score with your ad copy, your ad rank will automatically get a low score. And if your ad rank is low, you can’t get on the first page of search engines. As a result, your business will suffer.