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How AdWords Works – A PPC Primer

How AdWords Works – A PPC Primer

Ever wondered how Google made $28 billion in 2010?

Google AdWords is the Internet Company’s biggest advertising product. Under this source of revenue, Google offers potential clients advertising in the form of rich-media ads, pay-per-click (PPC) advertising, site-targeted advertising and cost-per-thousand (CPM) advertising, with pay rates differing depending on whether the distribution range is local, national or international.

If you’re wondering what Google AdWords looks like, all you need to do is search for a keyword on Google. You can then take note of the text-based advertisements strategically placed along the results page. Typically, these advertisements usually only consist of one eye-catching headline followed by two text lines. domain webhosting Occasionally, images are also added with sizes complying to the Interactive Advertising Bureau (IAB) standard.

Why PPC?

Of the four types of advertising forms offered by Google AdWords, pay-per-click (PPC) is the most popular. Essentially, PPC involves creating a text-based advertisement which is then displayed in websites via AdSense and on Google search pages via AdWords. Like its namesake suggests, Google is only paid each time someone clicks on the PPC advertisement which brings them to the landing page of your website.

The reason why PPC is the most widely used form of advertising on Google is simply because anyone can afford this mode of advertising and you only pay when someone clicks on your ad. At the same time, the affordability of PPC does not dent the fact that anyone can unleash their creativity by attracting new site visitors with less than 25 characters of title space. In the event that your advertisement gets a lot of attention, rest assured that you won’t be forking out your life savings to Google as you have the option of selecting the maximum amount you are willing to pay per click as well as the maximum amount of money you are willing to spend on a daily basis.

PPC also offers website owners the right to manage their advertising as well, in the sense that you also get to choose your targeted language, country and location you would like your advertisement to appear most frequently on. In other words, AdWords PPC allows you to target a niche group interested in your product or services, as opposed to randomly promoting your company to the entire World Wide Web.

As something cool on the Internet can become a faux pas seemingly overnight, investing in AdWords allows you to reach your audience in an instant. With the right keywords, PPC via Google AdWords can help generate targeted traffic within minutes of opening said account whereas other traditional forms of advertising will require days (or even weeks) to process and publish advertisements. In contrast, PPC empowers the owners to adjust their ad campaign based on the changing interests of its audience.

The PPC Campaign Structure

Of course, with everyone else jumping on board the PPC bandwagon, it is of the upmost importance that you separate yourself from the rest of the pack with a winning AdWords structure as the quality of your advertisement practically determines how well your account will perform on the Google search pages.

Step One: Choosing Your Campaign

There are about half a dozen ways to run your campaign. While most people base their advert on products and services offered, others focus on location whereas there are also those who concentrate solely on performance and bidding, branding, seasonality and keyword match types. Whichever focus group you select, be sure to plan your ad groups to run parallel to your campaign as well. For instance, advertising stiletto heels and bondage skirts to eighty year old retirees will certainly not generate you large volumes of revenue. At the end of the day, all of your marketing strategies (i.e. your campaigns, ad groups and keywords) must all be tightly relevant to each other to better your chances of running a successful advert.

Step Two: Check Your Settings

Having the wrong settings for your PPC might not cause your campaign to fail, but it might also cause some loss of profits. The most vital setting you must correct is the Location and Languages mode for obvious reasons. If you have Search Network enabled, you might also want to adjust the advanced location options as well that can be used for targeting and exclusion.

You can then decide on where you would like your advertisements to be displayed on the Internet via the Networks and Devices settings. On the Search and Content Network, you have the option of selecting between only appearing on Google searches versus debuting on as well as all other partnering sites.

Step Three: Choosing Your Devices

Under the Devices Settings, you can decide on whether your PPC appears only on desktops, laptops, mobile devices or all of the above. Unless you are intent on focusing on a mobile phone campaign or desktop/laptop exclusive campaign, we usually recommend advertisers choose all of the above for wider viewership.

How the Bidding Model Works

The Bidding and Budget setting is most certainly the most important in terms of monetary gains. Setting a budget for your PPC is a pretty delicate matter as an over exposed advertisement can cause you to use up your entire advertising budget overnight whereas a barely seen advert will not allow your campaign to reach its full potential. To determine the ideal daily budget for your campaign, all you need to do is divide the total number of days in that month by the number of campaigns you own. domain ip info . You can then reallocate accordingly once the account is running actively.

According to AdWords Help, the key to a successful bidding model is in increasing your maximum Cost-Per-Click (CPC). Hence to increase your CPC, you are literally obliged to outbid other advertisers. The good news is that even if your bid is several dollars (e.g. $5) in difference from the second highest bidder (e.g. $0.58), you will only be paying an extra penny higher than the second highest bidder (e.g. $0.59). Of course, this also means that competing advertisers may purposefully push your bidding price upwards simply by setting their bids constantly below yours.

For the bidding virgin, we recommend that you first start out by focusing on manually bidding for clicks as this allows you best control over your budget. In due time, you might also consider conversion optimization offered by Google, although those are usually best suited for campaigns which generate over 15 conversions every month.