What is PPC? An Introduction to Pay Per Click Marketing

By | September 19, 2019

Hi. I’m Sam Stratton, the Digital Marketing
Director here at Koozai. Today I am going to be giving you an introduction
into pay-per-click advertising. There are a lot of people out there that aren’t
too sure or familiar of the different kinds of advertising that you can
do on the Internet, and paid search is one of them. The first thing that we’re going to go through,
it may seem simple to some people, but the difference between where paid
ads and organic search results differ. Imagine this is your web page.
You’ve done a search on Google for greenhouses. Here and here are
actually the sponsor paid advertisements. In this centre piece here,
you’ve got your organic listings. The bits I’m going to be talking
about today, I’m just going to purely be focusing on the paid advertising. There are three major players in terms of
PPC advertising. You’ve got Google, you’ve got Yahoo!, and you’ve got
Bing, which most people are going to be familiar with. Each of these search
engines have got their own platform to run PPC campaigns from. So with
Google, you’ve got Google AdWords, which is going to be by far the most
predominant platform and search engine used for paid advertisers. Following
this, you’ve got Yahoo! and Bing. They have recently merged together,
so all of the search results that you’re seeing on Bing and Yahoo! are
driven by the Bing results, and you’ve got two sets of results that are exactly
the same on two different search engines. Following on from this, I’m just going to
take this off of the board, and I want to talk to you a bit about how a campaign
should typically be structured. We see so many campaigns coming
here and PPC accounts coming in that are not set up in a structured and formal
way that the campaign is going to work. Getting that right I think
is key and one of the fundamental things we want to go through today. Up here we’ve got our account. Whether that
is with Bing, whether that’s with Yahoo!, or whether that’s with Google,
you’ve got your account here. Below that, you’re going to have your campaigns. Now the best thing to look at a campaign as
is if you’ve got a different service or a different product, you should
have a different campaign for each of those. Underneath your campaign, you’ve
then got what’s called ad groups. Now within a campaign, I would expect
to see multiple ad groups all containing different keywords. So within the
ad groups, we’ve then got our keywords. Now the reason I’m saying to structure a campaign
like this is you’ve got your campaign at the top, ad groups underneath
that all contain keywords. You think of an ad group like a house. So
you’ve got all of your different keywords as little people that go inside the
house. Now what you’re looking to do, so say if we’re taking a chocolate
manufacturer who wants to sell chocolate bars online, you might have Twix,
Bounty, Galaxy, Milky Ways, whatever. If you were to have all of those
keywords in one ad group, the ad text that you are going to write is never
going to be relevant to all three or four of those chocolate bars. So what you’re aiming to do is select keywords
that are really closely themed with each other and place them within
a group. We’ve got our keywords. So now let’s move on to ad text.
Within an ad group, you’ve got your ad text. Ad text should closely match
the keywords that you’ve got within that ad group. Let’s say we are selling
Twix chocolate bars. If you’ve got all you Twix variations of keywords
in that one group, you can then have ad text that is something along
the lines of, “Buy Twix online. Great deals at online prices. Twix bars are
delicious.” Link it through to your Twix page. If you had all of your different keywords
that were for all different chocolate bars within that one ad group, that
ad text is never going to marry up to all of those keywords and is never
going to be relevant. Moving on from keywords and ad texts, that’s
what we’ve covered so far, the next thing I want to talk about is your negative
keywords, which are missed on so many occasions by lots of different
campaigns that we’ve seen. So you’ve got your negative keywords. These are
keywords that should basically counteract anything that you don’t want your
ads to show for. There are going to be a lot of people online that might
be searching for free chocolate online, free Twix online. Putting
free as a negative keyword into your campaign level keywords is going to stop
any ads appearing if anyone is searching for anything with the phrase
free within it. So that’s your negatives. The next thing that you want to look at and
pay attention to when you’re creating an account is your budget that you
want to set. Now the budget is set at campaign level. It’s a daily budget
that you can allocate, and that should be something that you can afford to
pay on a daily basis. Following that you then want to set your keywords or
ad group bids. These are called maximum CPCs, and these are going to tell
the search engines what you’re willing to pay per click. So don’t over inflate
these and don’t put a really low CPC in there because your ads aren’t
going to be shown. Now that covers the basic campaign structure.
I have written a blog post that is going to go alongside this video,
so do check that out. We’ve got diagrams and stuff in there that should help
you structure your campaign accordingly. The final thing I want to go through is the
importance of measuring the success of your PPC campaign. AdWords, Yahoo!,
MSN adCenter, they’ve all got similar functionality and they all measure
the same elements of a PPC campaign. These are your clicks, so how much
traffic you are driving on each of your ads and keywords. Impressions
are how many times your ad is displayed within the search results. You’ve
got your click-through rate, your CTR, which is essentially your clicks
divided by your impressions. Anything above 5% is deemed a good click-through
rate, so that is something to aim for. Following that you’ve got your
spend. Spend is something that you really want to keep track of. You don’t
want to be spending over and above. You want to make sure that your PPC
campaigns are converting and generating a healthy ROI for you. Otherwise
there is no point in running them. Next up in tracking you’ve got your conversions.
All three platforms allow you to put a piece of code on your conversion
page so you can see which keywords are actually generating a conversion
for you, so another really important measurable here. Following that you’ve got your conversion
rate, which is, again, essentially your conversions divided by the
number of clicks. So how many clicks is it taking you to convert a lead
or a sale or a purchase? Finally we’ve got the cost per conversion,
which is again something that is really an important factor to look at when
you’re managing your PPC campaign, because you don’t want your cost
per conversion to be more than what you’re actually paying for that item
or that service in the first place. That’s it from me. Like I said, there is a
blog post that is going to be going live with this video as well, so do
check that out. If you’ve got any questions or want some further information,
follow us on Twitter, like us on Facebook, or sign up to our blog. Thanks
very much.

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