What is Pay Per Click Marketing?
The simplest explanation is that businesses pay to have their ad promoting their business displayed and they pay for the people that click on the ad. The marketing ad can be text or a display ad directed at a business’s target audience.
What makes Pay Per Click Marketing effective?
Effective campaigns depend on your goals and the strategy that you put behind them. What makes a Pay Per Click (PPC) marketing campaign effective is clarity on your target audience. At least as a starting point. The better you understand who you’re trying to reach and how to communicate with them. The better you can expect to see your results.
How many types of PPC marketing are there?
There are 8 main types of Pay Per click marketing models to choose from for your campaign.
- Search Ads- These are the ads that you’ll see at the top of a page when you search for a topic. Typically, 4 ads on a Google search followed by what they deem the best free article that answers your question. Then you’ll see the “People also ask” section after that. These 4 ads are paid ad placements meant to entice searchers to click on the links. Prior to taking a look at other options further down the page. These are text ads with a title and a brief description.
- Display Ads- These ads have images and are typically displayed on Google Ad Partner websites. Display ads are a bit more targeted to a specific audience. The benefits of targeting a more specific audience is another way of staying top of mind. Whether it is with targeting people that are new or retargeting because they expressed an interest.
- Social Ads- Social media PPC is a format that more people are familiar with as a paid marketing option. These are the ads that you see on a variety of social media platform feeds and timelines. Listed as sponsored so that you can identify the difference between a paid post and a regular post.
- Remarketing Ads- Reengaging your audience through ads that display to people who have visited your website. It’s a reminder of your products/services. Whether it’s a person that visited your website and started the purchasing process or someone that didn’t make it that far. Remarketing ads bring value to your marketing budget because you get that additional opportunity to win the business with someone that expressed interest.
- Google Shopping Ads- Shopping ads are also Google search result ads. Based on pricing and images. The price comparisons make it a bit more competitive but a good price and image go a long way in gathering clicks. It is also a good way to compete against your competitors who may have deeper pockets advertising-wise.
- Local Service Ads- These ads are more of a limited opportunity based on industry. Essentially services that you may need in a pinch. A busted pipe, locked out of the house, fuse issues those types of service needs. Think home services but of the emergency type of situation.
- Gmail sponsored promotional ads- While there are plenty of people who just naturally skip over these ads. There is an audience that benefits from these ads being run and includes them in their marketing strategy. You’ll want a great subject line and something to get their attention on the click to see a return on the investment but you are reaching people directly in their inbox. Where they may be more inclined to click to see what it is, that you’re selling.
- In-stream ads- Rounding out the list is the ability to promote your products/services within the video on YouTube. That box pops up just above the control panel when watching videos. Some ads you have to watch in their entirety and others that you can skip but it’s enough to catch your attention. Considering the volume of people on YouTube watching videos. You can get a lot of eyes on your ads and benefit from brand awareness as a goal. Clicks that turn into sales will require good to great content.
What is a good strategy for Pay Per Click marketing?
PPC campaigns require a budget that can get you enough exposure to gather results. The results that you gather help you start to strengthen your campaign strategy and put together best practices based on proven results.
Results from generating revenue as the main metric is understandable as it is the bottom line. Money does indeed make the world go round when it comes to PPC campaign results. It’s common to focus on what revenue was generated. Revenue pays for the marketing budget. The goal of paying out of profits instead of your pocket is the ultimate goal.
Putting a focus on analytics is something that gets overlooked. Ideally, as a marketer, you’ll want to get a better understanding of what ads are doing well and why. The better you understand these factors the better the campaign you can run and match the results. A quick win that can’t be duplicated can end up having you burn through your budget trying to find lightning in a bottle.
Trending for one keyword is great. Bettering your results with multiple keywords and increasing your reach is a game-changer. This gets you exposure to new audiences and more learnings that can benefit your business in many ways. Identifying new products and services that can help you grow your company is one of those benefits. The ability to forecast sales by getting steady results quarter to quarter annually is another.
Majority Media offers marketing strategies and campaign management for digital marketing. You can find out more about the Pay Per Click strategy and campaign management services here.
Is Pay Per Click marketing expensive?
You will definitely need to set aside a decent size budget to gather the exposure needed to see results. That budget will depend on your product’s price points and the industry. Some audiences cost more than others to target and market your product/services to.
Ideally, you’ll want to see a solid return for your investment. In general, a good to great result will be a 20% cost per sale. By that I mean you need to go beyond trying to break even and target in the range of 3:1 or better for your marketing. For every dollar that you spend, you should be seeing a return of at least three dollars in profit to consider a campaign successful over time. That said that comes with learning how to market your products/services properly. Applying a proper strategy and best practices that you gain from trial and error and the analytics that you gather running test campaigns.
What you will want to look out for is not managing your daily budget properly and burning through your monthly budget too quickly and missing out on sales and time to gather proper analytics. This is why it is important to put a cap on daily spend. It is also important to make sure that you have enough ads to swap out so that it’s not the same ad every time. Repeat ads lose their value over time and begin to get tuned out. So, part of your marketing budget needs to be set aside for your ad creative.
Summary of PPC marketing strategy
We’ve covered the basics of what Pay Per Click marketing is. The variety of types of PPC marketing as well as marketing strategies. The reality is when it comes to your marketing budget nobody can really set that but you because you have your business to think about.
The take away that I always try to stress over 20+yrs of marketing and advertising. It can only get people to your store’s door and website. It cannot force them to buy. You have to make sure that you think through what you’re going to do to win that business that you just paid to get once they arrive.
If you found this helpful and want to find out more you can download a free resource that takes a deeper dive into Pay Per Click advertising. The eBook will help those people that want to do it themselves as opposed to paying for a service to manage and run the marketing campaigns for them. It can also help you identify what questions you should ask and what information you would want to know in order to make sure that you’re partnering with the right service provider. Highlighting quick wins for your campaign. If they don’t have these in the marketing strategy presented. You may want to ask more questions and get a better feel for how and when they expect to show results.
If you are someone that realizes that this is more work than you have time to take on. Majority Media offers Digital Marketing campaign services and can manage the campaign and put together strategies that fit your business and budget. My goal is to have you pay out of your profits instead of your pockets. You can find out more about our services on our Pay Per Click Marketing Service Page.
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