What is PPC, and How Does It Work?

Is your online advertising strategy more “meh” than a venti, no-whip, half-caf, soy latte?

Ditch the corporate coffee chains and discover the hidden gem of PPC—the boutique coffee shop just waiting for you to visit.

Sure, there’s no free WiFi, but the results? They’ll blow your mind.

Let’s turn you into a PPC sommelier, one click at a time.

What is PPC?

Enough caffeine analogies, let’s get down to it.

PPC stands for “pay-per-click.” The concept is in the name: advertisers pay a fee each time an ad receives a click. In this way, PPC varies from traditional advertising—billboards, TV commercials, print ads—where advertisers are throwing spaghetti at the wall and hoping something sticks.

No spaghetti throwing with PPC. Nope, you know exactly who’s interacting with an ad, giving you the data you need to refine your strategy and maximize your return on investment (ROI).

PPC Terminology

PPC is filled with acronyms and its very own slew of phrases. I got you, though. Here are some common terms you’ll want to wrap your head around:

• Impressions are the number of times an ad is displayed, whether it’s clicked on or not.
• Clicks are, yup, the number of times users actually click on an ad.
• CTR (Click-Through Rate) is the percentage of impressions that result in clicks.
• CPC (Cost-Per-Click) is the amount an advertiser pays each time someone clicks on an ad.
• Conversion rate is the percentage of clicks that lead to a desired action (for example, a purchase, a signup, or a download).
• Quality score is Google’s rating of an ad’s relevance and quality. A higher Quality Score can lead to lower CPCs and better ad positions.
• Ad Rank determines an ad’s position on the search results page. It’s calculated based on the bid amount and Quality Score.
• Campaign is a collection of ad groups that share a common budget, targeting settings, and overall goal.
• Ad group is a group of related keywords and ads that target a specific theme or product.
• Keywords are the words or phrases that trigger an ad to appear when someone searches for them.

Learn more: check out our SEO glossary for definitions.

PPC vs. SEO vs. SEM

And the last piece of the “what” puzzle: PPC, SEO, and SEM. They’re all part of the same digital marketing family, but they each have their own unique personalities and skill sets.

Here’s what I mean:

• SEM (Search Engine Marketing) is the umbrella term that encompasses both paid and organic search strategies.
• SEO (Search Engine Optimization) focuses on earning those top spots in the search results through high-quality content, technical optimization, and backlinks.
• PPC (Pay-Per-Click) pays its way to the top of the search results with targeted ads and laser-focused campaigns.

While each discipline has a different approach, they all share the same goal: to get a website in front of the right people at just the right time.

Learn more: SEO vs. PPC.

Types of PPC Ads

Okay-doke, next, the different types of PPC ads. They come in many different formats:

Search Ads

Search ads are the trusty workhorses of PPC. They’re those text-based ads you see on the top (and sometimes bottom) of the search results. Sure, they might not be flashy, but they get the job done.

Display Ads

Display ads appear on websites and apps across the Google Display Network, reaching users who might not be actively searching for your product or service but could still be interested. They’re perfect for building brand awareness, getting your logo in front of a wider audience, and subtly planting the seed for future conversions.

Video Ads

Video ads: think mini-blockbusters for your brand. They’re not just eye candy, they’re a full-blown sensory experience. Showcase your product in action, tell your brand’s epic origin story, or just make people laugh—the possibilities are endless. And with platforms like YouTube and social media, you can reach a billion+ strong audience. Can’t beat that.

Remarketing Ads

Remarketing ads follow your potential customers around the internet, gently (or not-so-gently) reminding them of that amazing product they left in their cart or that blog post they were totally digging. It’s like a little “Hey, remember me?” whisper in their ear, nudging them back to your site to seal the deal.

How PPC Works

No gavel-banging or stuffy auctioneers here. PPC is a fast-paced, high-stakes game where every keyword is a prized possession.

Here’s the play-by-play for PPC search ads:

Every time someone searches for something on Google (or Bing or any other search engine that offers PPC), an auction takes place. Advertisers who’ve targeted those keywords enter the ring, each one hoping their ad will be crowned the champion and displayed at the top of the search results.

But how does the winner get chosen? It’s not just about who’s willing to pay the most (though that certainly helps). Google’s algorithm takes a few things into account:

• How much are you willing to pay for each click on your ad?
• Is your ad relevant to the search query? Does it have a high click-through rate? Is the landing page experience top-notch?
• Do you have any fancy add-ons like sitelinks or call extensions that could boost your ad’s performance?

All these factors get thrown into a blender, and voilà! You get your Ad Rank, which determines your ad’s position on the page.

The higher your Ad Rank, the better your placement.

Just remember, it’s not just about throwing money at the problem. You need a winning combination of smart bidding, high-quality ads, and a conversion-optimized landing page.

Why PPC Matters: The Benefits for Your Business

No more patiently nurturing those organic rankings—with PPC, you can get your brand in front of eager eyes instantly.

Yup, bypass the line and get your (or your client’s) business noticed by the right crowd.

And we’re not talking about just any crowd. With PPC’s laser-focused targeting, you can zero in on your ideal customers based on their demographics, interests, location, and even their online behavior.

But PPC isn’t just about clicks and impressions. Nope, it’s also about cold, hard data. You can track every click, every conversion, and every dollar spent, giving you the insights you need to fine-tune your campaigns like a marketing maestro.

And if things aren’t working out? Don’t sweat it. PPC gives you the flexibility to adjust your budget, targeting, and ad copy on the fly.

Even if those clicks aren’t rolling in right away, don’t throw in the towel just yet. Think of it like a billboard on the digital highway—even if motorists don’t immediately pull over, they’re still absorbing the brand message.

Every impression builds recognition, planting seeds for future conversions. It’s brand awareness, amplified.

Top PPC Advertising Platforms

Okay, let’s talk platforms. Here’s a quick rundown of the major PPC players:

Google Ads

With its massive reach and unparalleled targeting options, Google Ads is the go-to platform for many businesses. It is particularly effective for search ads, display ads, and remarketing campaigns, making it a versatile choice for businesses of all sizes.

Bing Ads

While it might not have the same reach as Google, Bing Ads offers a less competitive landscape and potentially lower CPCs. It’s like the indie band that’s about to hit it big—if you get in early, you could reap the rewards. Bing Ads is a great option for businesses targeting a more mature or professional audience, especially in the B2B space.

Social Media Ads

Social media ads offer highly targeted options based on demographics, interests, and behaviors, making them perfect for building brand awareness and engaging with your community. Just be prepared to create visually appealing and thumb-stopping content to stand out from the crowd.

Other Platforms

Depending on your industry and target audience, there are a whole heap of other PPC platforms to consider. From Amazon Advertising for e-commerce businesses to programmatic advertising for reaching specific audiences across the web, there’s a platform for every niche.

And which platform is right for you? That depends on your goals, target audience, and budget.

Conclusion and Next Steps

Alright, here’s the real question: Are you ready to take the plunge and launch your own PPC campaigns?

We’ve got you.

Loganix, that’s us, will help you navigate the complexities of paid search, craft compelling ad campaigns, and optimize your landing pages for maximum conversions.

So, what are you waiting for?

🚀 Head over to our PPC management services, and let’s chat. 🚀