What is the Difference Between PPC Marketing

PPC: Explanation and Instructions for Beginners

What is CPC (Cost Per Click)?

While the PPC is the accounting method called CPC (cost per click) the price you pay for each click of your ad. The principle is simple: you only pay when your advertising material is clicked on. The CPC can be a fixed price, but often you also bid on a keyword. That works then like an auction: The company that offers the highest amount gets the advertising space. So the more you bid per click, the more often your ad will appear in search results.

You can choose whether your ad should only be displayed when you precisely enter your keywords or, instead, in a broader context. It is also possible to have your ads on to restrict certain regions (geo-targeting) or exclude search queries that contain certain words.

You can see how well your ad is performing at the Click-Through Rate (CTR): This number tells you what percentage of the users to whom the ad is shown clicked on your advertising material.

PPC campaigns are campaigns based on the Based on the principle of pay per click. Here is SEA, so Search engine advertising, one of the areas where the pay per click principle is most commonly used. Google Ads or Yahoo Search Marketing also work with click prices. But also Facebook ads, displays and banners or text links in affiliate marketing are often paid per click.

Because Google Ads is certainly one of the best-known tools, we would like to use this example to explain how to set up a PPC campaign. Once you understand the principle, you can apply it to many other tools.

PPC and CPC instructions: This is how it works

You set up an account with the provider with whom you want to place ads. In the case of Google Ads, you can sign in to your Google account and then, if necessary, create different accounts for the companies you serve. You can then create campaigns under these accounts. You will be asked to enter your credit card as a means of payment and select a price for the campaign.

You then determine the keywords for the PPC campaign. These ensure that the inorganic search results - i.e. your ads - are always displayed in the search results when a user searches for the corresponding keywords.

Note that in most cases, multiple companies will want to promote the same keywords. If that is the case, an auction takes place between the bidders to preserve the advertising placement: So if you bid one euro as CPC, but another company only bids 90 cents, you will receive the advertising space and your competition will be left empty-handed.

As soon as users search for the relevant keyword, your Adword or your ad will be displayed. The great advantage of PPC is that you only pay if your ad is successful and a user actually clicks on it.

The account is set up in a few minutes and you can start creating your ads right away. Now you can experiment which choice of words and keywords achieve the highest CTR.

To the measurable goal: the range

Now you know what PPC stands for and what a PPC campaign can look like. But what is the whole procedure for?

With the Pay per Click formula, you can ostensibly increase the reach of your company's presence on the Internet - and all of this in a fully controllable manner, because you have full cost control. This allows you to determine in advance what budget you want to spend on your campaign.

This way, there are no unpleasant surprises. And you minimize wastage to users who are actually shown the ad, but who do not click on it (or do not even notice it). So you only pay if your ads really appeal to users and they become aware of your website.

For your everyday life as a marketer, this means that reach not only remains a vague term, but becomes a measurable and operationalizable goal.

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