Pay Per Click (PPC) FAQs

Dive deep into PPC marketing. Learn about Google PPC campaigns, Pay-Per-Click advertising strategies, how to generate PPC leads, optimizing ecommerce PPC, and mastering B2B PPC.

First, you need to identify your goals, set up your objectives, and understand your target audience. This is important to establish a foundation. Once this is done, you can sign up and create a Google Ads account. After that, you can implement the following steps.

 

  • Identify your primary and secondary keywords.
  • Create your ad campaign.
  • Start creating your ads.
  • Measure the performance of your ad campaign regularly.
  • Identify the flaws in your campaign and fix them.

Google AdWords is an older term for Google Ads, which is an online advertising platform that allows you to display your ads on Google’s search engine results page. It works on a PPC model where you have to pay only when a user clicks your ad.

  • Set a clear, well-defined objective.
  • Find highly targeted search phrases (Long tail keywords) that serve searcher intent and use them to your advantage.
  • Optimize your landing page.
  • Exclude irrelevant search terms by adding them to your negative keywords list.
  • Use relevant metrics to measure the performance of your ad campaign.
  •  Sign up and set up a Google Ads account.
  • Set up your campaign by choosing the campaign objective and campaign type.
  • In the “Describe Your Business” section, add information related to your business.
  • Set your geographic area by specifying your location and language.
  • Set up your keywords.
  • Calculate your ad budget, pick a bid strategy, and complete the “Budget and Review” section.

A/B testing is a process in which two or more versions of an element – like ad copy, an image, a web page or an app – are shown to different segments of website users at the same time to determine which version performs better. Here, you split your audience to test the versions, so, this process is also referred to as split testing.

CTA is an abbreviation of “Call-to-Action,” which is a text prompt designed on a website to convince the target audience of a marketing campaign to take some specific action, such as making a purchase. A CTA is usually an action phrase such as “Buy Now”, “Subscribe”, and so on.

Cost per click (CPC) is an important metric in online advertising that measures how much advertisers need to pay for the ads they place on social media platforms or their websites each time someone clicks on their ad. CPC is sometimes referred to as pay-per-click (PPC).

A marketing campaign is a sequence of strategic activities that aim to promote a product, service, or brand as a whole through different channels and mediums with a specific business goal or objective in mind.

A retargeting ad is an online advertising technique that offers an opportunity to marketers to reach out to customers who previously visited their website but left without converting or taking any desired action. Retargeting, which is also referred to as remarketing, helps marketers to recapture potential leads.

Cost per click, abbreviated as CPC, is calculated by dividing the overall cost of an advertiser’s ad campaign by the number of clicks the ad received.


CPC = Overall advertising cost of an ad / Total number of clicks generated by the ad

The conversion rate is the percentage of users who have completed a specific action, such as purchasing an item from your website.

 

Conversion rate = Number of users who have completed an action / Total number of users who viewed your ad


A lower conversion rate indicates that the content needs to be optimized to achieve the desired result.

CTR, which is the abbreviation of “click-through rate,” is the number of clicks an advertisement receives divided by the number of times the ad is shown (the number of impressions). If an advertisement has 200 clicks and 1000 impressions, then the CTR would be 20%.

Return on Ad Spend (ROAS) is a metric that determines the cost-effectiveness of an ad campaign by measuring the revenue advertisers earn for each dollar they spend on advertising.


Return on Ad Spend = Conversion Revenue / Total Ad Spend

The average click-through rate for a Google ad campaign is determined based on the ratio of ad clicks to impressions. There is no fixed average CTR since it varies depending on the industry. However, many industries have an average click-through rate in the range of 4 to 6%.

A key performance indicator (KPI) is a quantifiable metric that helps organizations track their progress and determine how well they are performing in terms of meeting their desired goals and objectives. It helps them identify their strengths and weaknesses, enabling them to take data-driven and business-related decisions accordingly.

There are many best practices in creating ads. However, here are two of the most important:

 

  • Ensure that you write a compelling, genuine ad copy, focusing on the message that reflects your brand as well as the products or services you offer.
  • Use keywords effectively and evaluate the performance of your ads using relevant metrics.

The quality score in AdWords is a keyword-level score on a scale of 1-10 that allows advertisers to assess the quality and relevance of their keywords with respect to the ad copy, landing pages, and user experience. In a nutshell, this is a tool given to advertisers by Google to help them determine the effectiveness of their campaigns. A higher quality score indicates a lower cost per click, leading to better ad positions.

There’s no clear-cut answer to this question. First, let’s try to understand what an average click-through rate is. The average CTR is determined based on the ratio of ad clicks to impressions. The average CTR varies depending on the industry; however, many industries have an average click-through rate in the range of 4 to 6%. So, a CTR higher than this range can be considered a good CTR.

Even though there is no hard and fast rule when it comes to the number of ad groups you should have in each campaign, it is advisable not to have more than 10 ad groups per campaign (preferably no more than 7-10). The number of ad groups you can have in each campaign will depend on your target audience and the complexity of your offerings.

A sitelink extension is an ad extension feature in Google Ads that allows advertisers to include additional links to pages beyond the destination landing page in their PPC ad. This feature allows advertisers to take users to specific pages on their website that are relevant to the user’s search intent, thereby increasing the click-through rate.

An impression is a metric used for evaluating the number of digital views or engagements of an ad or any other piece of content, such as a post or web page. It represents an opportunity for an ad to be seen by its audience and influence them into becoming a customer.

You should use responsive display ads when your main focus is on performance and meeting branding requirements. Responsive display ads are crucial if you are striving for better reach, enhanced performance, and improved click-through rates.

Dynamic search ads use the content from your website to dynamically create ad headlines that target relevant searches. They help advertisers identify relevant searches and target keywords that their traditional or regular search campaigns may have missed, thereby ensuring that their ads remain relevant to what users are searching for.

Attribution modeling helps advertisers determine how much credit they need to allocate for different marketing channels or touchpoints – the credit required for each marketing channel and touchpoint in the customer’s buying journey for a specific sale.

An ad group is a collection of one or more ads that house keywords and landing pages, helping advertisers organize their ads by a common theme and structure their PPC campaign into a meaningful hierarchy.

Engagement rate is a metric that lets advertisers determine how much an audience is engaged (actively involved) with their content – the average number of interactions such as likes, comments, and shares their social media content receives per follower.

Social Media Engagement Rate (%) = Likes+Shares+Comments /Number of followers  * 100

Return on ad spend (ROAS) is calculated by dividing the revenue generated by an ad campaign by the cost of the campaign. It is a key metric in digital marketing as it allows advertisers to measure the profitability of their ad campaign. There isn’t a one-size-fits-all metric to calculate a good ROAS, since each industry has different advertising strategies. So, a good ROAS can vary depending on the industry. However, a ROAS greater than 100% is usually considered a good ROAS as it indicates that the business is making more money compared to its ad expenditures.

“Exact match keywords” is a filter used in ad campaigns that allow your ad to appear only when a user searches for your keyword. It means that the user who is searching for a specific keyword is actually using the exact words you have included in your keyword in the exact same order. In a nutshell, it allows advertisers to display their ads on searches that have the same intent as their keyword.

Cost per acquisition is a marketing tool that helps advertisers determine the total cost of acquiring a particular action from a customer – the total cost of acquiring a new customer through an ad campaign.


Cost Per Acquisition (CPA) = Total Advertising Spend / Number of Acquisitions Generated

The key benefit of using the sitelink extension is that it allows users to directly go to the relevant pages, making it easier for them to take a desired action. This can increase the click-through rate significantly.

Callout, sitelink, and structured snippets are some ad extensions that can serve automatically, i.e., Google Ads will display them below your ad automatically.

While Google Ads allows as many as 20,000 keywords per ad group, the usually recommended amount is in the range of 20-25. However, there is no precise answer to this question, as this recommended range does not always guarantee a successful campaign. Targeting high-quality keywords is the key. Targeting 10 high-quality keywords can give better results compared to 20, 30, or even 50 low-quality keywords. So, there is no perfect amount as such, because it could vary depending on the ad.

Phrase match is a keyword match type that allows advertisers to show their ads on searches that include the meaning of their keyword. Phrase match keywords are less focused than exact match keywords; however, they allow advertisers to reach more searches compared to exact match keywords.

Advertisers don’t need to change the bid value manually when it comes to automated bidding since the platform’s algorithm gains a good understanding of the performance of a specific keyword by analyzing the past data which will increase the chances of the users clicking on that ad or taking a desired action. The main advantage of automated bidding is that it simplifies the process of setting bids for advertisers, thereby helping them improve the results of their campaigns.

Conversion-focused bidding or conversion value-based automated bidding is a type of smart bidding strategy or enhanced cost-per-click (ECPC) that helps you get more conversions from manual bidding.

  • Automated bidding helps advertisers save time, as they don’t need to set bid amounts manually for their ad groups or keywords separately.
  • It simplifies the process of setting bids and increases visibility in search results, clicks, and conversions, thereby improving the overall results of an ad campaign.

There are several benefits of using responsive display ads (RDAs). These ads include an interactive design that easily adjusts to the size of any device it’s being viewed on, including mobile phones. Another main advantage of RDAs is that they ensure better conversion rates thanks to their machine learning capacity that tests variations and evaluates them on their own.

Conversion tracking helps advertisers find out how many sales their campaign has driven. It helps them identify which ads, listings, and keywords are proving to be more beneficial for their business.

There are several benefits of display ads; however, the key benefit is that they are eye-catching and visually appealing. They can reach your target audience on the go and familiarize them with your brand.

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