In this post we will focus on the Pay-Per-Click Adversiting model. As all advertising campaigns are designed to meet the stated objectives of the marketing plan it is convenient for every company to know the different types of online advertising models that exist and analyze which one is more in line with their campaign.
Pay-per-click is one of the advertising methods in which the advertiser pays the affiliate for their ads to appear on their online platforms. It can be in their search engines, on social media or websites. Once the user clicks on the ad, it is redirected to the advertiser’s website generating web traffic.
Its goal is to increase sales by generating more website traffic, leads from potential customers and branding the brand.
- Channel that allows high segmentation.
- Results measurement: With the right tracking system, you can calculate the ROI (return of investment) of your keywords.
- Technically it is less complex than SEO (Search Engine Optimization).
- It is predictable since the traffic and results are normally stable and predictable compared to SEO.
- It is appropriate for branding and remarketing. Since on one hand it is proven that there is a brand effect with PPC and on the other, Google offers the data trough engine cookies to display the adds.
- Measurement method for campaigns that are designed to make more branding, not for campaigns designed to generate sales.
- The market is very competitive and consequently more expensive.
- It is unsuitable for companies with a low budget.
- Some users may find the content irrelevant because they do not trust the advertisers and therefore, they don’t click on the ad.
- You must have specialized knowledge to now how to configure the tool.
The advertiser can agree with the affiliate three main forms of payment:
- The Cost Per Click (CPC): The advertiser brand pays the affiliate for each click that the user makes on the ad this directs them to be advertiser’s website. The cost of each keyword may vary depending on the level of competition.
- The Cost Per Acquisition (CPA): The advertiser pays when it has achieved the goal of selling through the ad.
- Cost Per Impression (CPI): The advertiser pays for the number of times the ad is published.
The main strategies to follow with PPC
There are two main types of strategies for PPC advertising:
- High budget: It is based on being able to compete with the main competitors that offer the highest amount of the most searched keywords. Therefore, a considerable conversion rate (the% of users who do a specific action with your company) should be assumed once users go to the website.
- Reduced budget: It is low-cost strategy based on the use of less popular phrases, that is, long-tail keywords. Less traffic will be generated and therefore, it will be necessary to inquire into the key phrases so that the traffic matches the most popular keywords.
To optimize the CPC of the words, through the Google Ads platform, you can define and automate the maximum and minimum that the advertiser is willing to pay for each click. A good practice is to extend the range of key phrases to include low volume phrases. It is also important to note that when the words are Short tail it is more difficult to obtain conversions at a reduced cost since the competition is much bigger due to their search volume. On the other hand, if you opt for Long tail words, the competition will be able to achieve better and more specific results according to your interests.