How Does Pay-Per-Click Advertising Work Exactly?

January 29 / Clare J. / filed under Internet Marketing

If you’re considering branching out in your advertising efforts, one option to consider is Pay-Per-Click (PPC) advertising. Used on Google, Facebook, and a wide range of other sites, PPC advertising allows you to reach out to a very specific demographic at the time when you think they’ll be most receptive to your advertising. But what is it, how does it work, and why should you use it? Here are a few quick answers to help get you started.

What is PPC Advertising?

Unlike other forms of advertising where you pay for your ad to be up for a particular period of time – such as a weekly ad in a newspaper – PPC advertising only costs you money when you are reaching a prospective customer that is looking for your specific product or service on an online platform. That’s why it’s called pay-per-click, because you’re paying every time a prospect clicks on your ad, not for the ad to appear in one spot for a period of time.

How Does PPC Advertising Work?

Essentially, you put together an advertisement that will be effective in conveying your message, then determine which websites you’ll list it on. Google, Facebook, LinkedIn, Bing, Yahoo, Twitter, Pinterest: all of these sites have some form of PPC advertising available for you to purchase. You’ll want to consider what would be in line with your business’ focus, such as using search engine website ads for local businesses; LinkedIn for B2B or B2G businesses; or Facebook, Twitter or Pinterest for B2C businesses. This allows you to focus your advertisement on specific demographics that are most likely to be interested in your service.

Why Should I Use PPC Advertising?

PPC advertising allows you to target a hyper-focused demographic. As an example, say you run a company that provides financial aid counseling services prior to college to ensure the students receive the best financial aid packages. PPC allows you to target parents that best fit your target demographics: 40+ adults with teenage children, living in a specific region, and searching online in the evenings for information about financial aid and scholarships. PPC advertising lets your ad appear to those parents at those times, making it easier to get more out of your marketing dollars, which leads to our next question.

What’s the ROI on PPC Advertising?

Like any form of advertising, you can get good and bad results from PPC advertising. If you work through A/B split testing, spend a little time getting to know the platform you’re using and are willing to create a hyper-focused campaign, some results will provide as high as a 50% return on your investment, meaning that half of all visitors to your landing page or website are willing to make a purchase. Google Ads typically see $2 for every $1 spent. Social media is harder to calculate, but reaches a broader audience.

If you’re interested in starting a PPC advertising campaign but aren’t sure where you should start, the experienced professionals at Chair 10 Marketing can help. With years of experience in developing successful marketing campaigns, we can help you make the most out of your advertising dollars. Please feel free to reach out today with any questions, to get more information, or to schedule a consultation to develop an effective strategy for your business needs.