What is PPC in Digital Marketing

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What is PPC in Digital Marketing

One of the most effective online advertising models is PPC (Pay per Click). These are advertisements, the money for which is withdrawn from the advertising budget only when a potential client clicks on the advertisement and goes to the promoted site, online store, or other online resource. That is, the advertiser pays only for the targeted actions of the user, who, with a high probability, can become a real buyer. Such an advertising model is used in contextual and other advertising and allows you to optimize the cost of Internet promotion.

PPC - what is it?

When online advertising appeared, in most cases, payment was made for a certain number of impressions (CPM model). Advertisers were charged for 1,000 impressions. At the same time, no one guaranteed that those who viewed the advertisement would go to the site and make a purchase of the promoted product or service. When Pay per Click campaigns appeared, those who paid for advertising already understood how many of the people who watched were at least active. The fact that a person goes to the site does not yet guarantee a purchase, but his further actions are already being analyzed in a different context (not interested in the assortment, too high prices, incomprehensible working conditions, etc.).

Where can the PPC model be applied?

PPC marketing is an optimization scheme that is not only suitable for launching and running contextual campaigns. This model can be used for other types of Internet promotion. The advertiser himself chooses what he will pay for - for impressions (CPM) or for actions (CPA).

The choice of model depends on many factors. First of all, you need to consider the goals and objectives of the marketing strategy. For example, if there is a goal to increase brand awareness, you can use pay-per-impression (because even without clicking on the link, the user will catch a glimpse of the name of the company or trademark). If there is a goal to increase traffic, increase sales and the number of new customers, then pay per click will be more economical.

PPC advertising is a model that is used in search networks for natural search results for key queries, teaser networks, and partner resources. By placing advertising banners or ads on these sites, you can promote a variety of goods, services, works.

The main task of the pay-per-click model is to involve the maximum number of potential customers. By pulling a person into its sales funnel, the company is already further working with a more loyal user, taking into account his interests and preferences, interest in the product.

For what types of activities you can use the CPC traffic type:
  • sale of consumer goods (clothing, footwear, appliances, accessories and much more);
  • sale of products for the B2B sphere. These are equipment, raw materials and materials, software and components;
  • services for end consumers, for the business-to-business sphere.

Difference between PPC and CPC

In online advertising, models are presented that are aimed at paying for a certain activity of the target audience (TA). They use the following standard indicators:
  • PPC - the model by which the cost of a click is formed;
  • CPC is the cost per click paid by the advertiser.
The transition price can be fixed or remain flexible. A flexible grid is used in advertising in social networks, search engines. The variability of the cost of a click depends on the level of competition (the higher the competition, the more expensive the price per click), the quality of the banner and the online resource that a potential buyer goes to. Each advertising system forms its own pricing policy, which must be taken into account when optimizing the costs of the company's Internet promotion.

The effectiveness and benefits of the PPC model

Contextual advertising based on the PPC model has the following advantages:
  • optimization of promotion costs. The advertiser pays only for the targeted action of a potential customer;
  • the ability to analyze the effectiveness of the promotion of the site, online store, landing;
  • increase in targeted traffic. Advertising is clicked by already interested users who can become customers.
When evaluating the effectiveness of the advertising model that is used in online promotion, various indicators are studied. It's not just cost per click. An important metric is ROI (Return on Investment), which shows how much profit a company receives by conducting an advertising campaign.

Responsibilities of a PPC Specialist

It is better to trust contextual and other advertising to professionals. A PPC specialist is responsible for advertising campaigns, analyzes the pricing models of different sites, selects the best promotion channels, and interacts with the sales department, understanding who visits the site and for what purpose, for what reason they place or do not place an order.