The recent boom in internet usage and growth over the past fifteen years has forced advertisers to scramble to take their advertisements online in order to stay competitive. Advertisers who do not have their ads in the digital marketplace lose out on access to a network of potential customers around the globe for their products and services. Online advertising is a cost-effective, and smart option for businesses, marketers, and advertisers looking to extend their reach and increase sales.
Thanks to technological advancements, buying and selling products online has never been easier. To facilitate these rapid changes in e-commerce, advertising and marketing methods have also adapted. The revolutionary marketing strategy known as pay-per-click (PPC) marketing was born as a direct product of the digital innovations of the early 2000’s. PPC marketing is an incredibly effective option that cannot be overlooked by businesses and online marketers.
What Is PPC Marketing?
Pay-per-click (PPC) marketing is an online advertising model in which advertisers only pay for ads that are clicked on by users. PPC marketing drives traffic to advertisers websites, and in exchange, they pay the publisher each time their ad is clicked. A publisher is usually a webpage or blog owner, or search engine provider and PPC marketing is a lucrative strategy for them to generate advertising revenue.
Origin Of PPC Marketing
PPC marketing can be utilized for advertisements placed in search engine results such as Google, or for sponsored ads placed on websites. Google began PPC marketing in its search engine in 1999 and formally created the Google AdWords PPC Marketing software the following year in 2000.
Google AdWords is an industry leading pay-per-click marketing service that provides relevant and targeted advertisements within users search engine results based on keywords. Keywords are very important in PPC marketing, and they help to determine which advertisements are selected for placement.
How Does It Work?
PPC marketing on popular services such as Google AdWords operates on a bid-based system. In this bidding system, advertisers set a price they are willing to pay for a certain ad placement, usually selected by choosing specific keywords. The advertiser willing to pay the most will be granted the ad placement, and this is beneficial for the publisher as it generates the largest possible advertising revenue for that specific ad placement. Some publishers operate on a flat rate model for payment, and advertisers are required to pay the same flat rate per click.
Bid-Based PPC Vs. Flat Fee PPC
Determining which model is best for your business’ needs can be difficult as there are many factors that need to be considered. The advertiser must determine what each click is worth to them, and what it will generate in value in terms of a new follower or a potential sale. Employing an application like Google Analytics can help businesses and marketers calculate statistics like return on investment and click-through rates to determine exactly what each click is worth.
Learning the basics of pay-per-click marketing may seem intimidating at first. But, with hard-work and perseverance, PPC marketing tactics can be successfully utilized by any business online marketer or advertiser. Known by industry experts as a revolutionary opportunity, PPC marketing allows advertisers to only pay for ads that online visitors click on. This cost-saving and efficient system has led to hundreds of thousands of advertisers utilizing PPC marketing. To get an even more depth knowledge of PPC marketing, contact an online marketing consultant today.