Pay Per Click (PPC) - What Is It, Important Metrics, and Benefits

Nandini Bansal Nandini Bansal
Apr 11, 2022 4 min read
Pay Per Click (PPC) - What Is It, Important Metrics, and Benefits

Pay-per-click (PPC) marketing is a form of online advertising in which advertisers pay publishers a fee every time their ad is clicked. It is a common way of driving traffic to your websites.

Search Engine Marketing is the most essential and popular form of PPC marketing. Search engines allow advertisers to link their ads when a keyword relevant to their product is searched by a user. For instance, if we search, β€œblack watches,” ads from different online shopping stores might show up on the top of your results page.

What is (PPC)?
Important PPC Metrics
Benefits Of PPC Advertising

What is (PPC)?

Pay-per-click is most commonly associated with search engines like Google Ads, Microsoft Advertising, Amazon Advertising etc. Advertisers have to bid for keywords relevant to their target audience to secure a position to display their advertisements, search offerings or product listings on these engines. All these services are managed under a PPC pricing model. PPC is used to lessen the costs of digital advertising while retaining profitability and setting goals.

Google PPC Search Ad
Google PPC Search Ad

Social networking sites like Facebook, Twitter, Linkedin and Pinterest have also adopted the PPC form of advertising known as Social PPC. These ads target groups on the basis of demographics, interest or other information gathered by a particular platform.

In social PPC, the advertiser determines the viewership of the ads, in contrast to it being led according to the user’s search terms. These ads appear on the user’s feed or timeline. The advertisers usually pay through two bidding systems: CPC (Cost Per Click) or CPM (Cost Per Thousand Impressions).

Important PPC Metrics

The success of a PPC campaign is essential to the success of a company. Thus, the metrics used to determine the effectiveness of a PPC campaign are:

Conversion Marketing

Conversions are the crux of the deal i.e. how often does a click result in a sale, it is what you are ultimately concerned about. Cost Per Acquisition (CPA) is a specific type of conversion measure and usually refers to the cost of getting a customer.

Quality Score

It is a number that Google assigns to the quality and relevance of your ads, keywords and landing pages. A quality score is essential in determining the position of your ad in the search engine.

Impression Share

It measures the rate of potential impressions that your ads are getting. For example, if there are 1000 searches for a keyword and your ad shows up 750 times of those 1000, then your impression share would be 75%.

Click-Through Rate

It is the measure of people who actually click on your ad to the number of people who see the ad. A low CTR might indicate that an ad is either irrelevant or isn’t compelling enough. Calculating and comparing CTR is a quick way to determine whether an ad is under or overperforming.

Benefits Of PPC Advertising

There are multiple benefits of using the method and strategy of PPC when it comes to advertising.

Ads Cater to People Who Look For Them

Ads are only displayed for potential clients who search for relevant keywords and look for particular results. This gives an advertiser more control over when, where and how an ad can be displayed.

Easily Accessible

Anyone, be it a startup with limited resources or just a company looking for an entry into the world of digital marketing can quickly catch up and even get a head start with the help of the PPC marketing method.

Measurable Tactics

PPC advertising campaigns can be strategically set up and designed to measure accurate effectiveness. You can calculate and even determine the exact amount of profit return on your investment.

You Pay When Someone Clicks

With most advertising methods, you have to pay a hefty cost just for securing a position for your ad. It does not ensure any visits or sales to your business. One of the most essential benefits of PPC is that you only pay when someone interacts with your ad, ensuring a chance for profit.

Reduces Inequalities and Widens Opportunities

With PPC you can compete with mega giants of the business who have been around for a while even if you are a website or a startup in its very initial stages, it lets you compete for customers and provides you with an edge in the world of marketing.

Budget Friendly

In most types of advertising, with rudimentary standards, you are stuck with a particular pricing method. PPC allows you to set your own budget and work according to it. It does not discriminate between an MNC or a small-town startup.

Helps in Achieving Brand goals

It offers your company brand exposure and directs traffic to your website, helping in increasing sales and profits. It can introduce your brand to people who haven’t heard of it before, thus, it creates a name for the company in the market.


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FAQs

What is PPC?

PPC also known as Pay-per-click advertising is an advertising method where advertisers pay a small fee if a user interacts with their ad.

What is an example of PPC?

If an advertiser sets up an ad, and when a user searches for the keyword, for example, 'best digital marketing course', Google will position your website on the top search results.

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