A Beginner’s Guide to PPC Advertising

Businessman reading Beginner's Guide to PPC Advertising

Pay-per-click (PPC) advertising is one of the best investments a business can make. However, there is a steep learning curve when you begin and lots of information to pick up before you select a pay-per-click advertising service or kick off any campaigns.

On this page, you’ll get a high-level overview of the benefits of paid ads, some of the challenges businesses face when running them, and how a typical pay-per-click company might address them. That way, you’ll have a strong foundation for making some of your initial decisions strategically and can move forward with confidence.

What is Pay-Per-Click Advertising?

Pay-per-click ads are a form of paid advertising in which the business pays each time someone clicks their ad. The phrase “cost-per-click,” or “CPC,” is sometimes used to denote the same thing, though it’s actually the metric used when measuring those clicks.

The process is managed by an ad platform or network, such as Google or Microsoft, and there are many types of PPC ads, including search ads and display ads. Sometimes the ad publisher is the ad platform. This is the case with search ads. Google, for example, will run your ads alongside search results. Other times, the publisher is a website or application that wants to earn money by displaying ads.

PPC ads run on a bidding system, which means you decide how much you’re willing to spend on a click before your ads begin running. The ad platform will weigh this heavily in its decision on which ads to show and in what order, but it will sometimes give a lower bidder a better ad position it’s likely to provide the user with a better experience.

How a Pay-Per-Click Advertising Service Works: 1. Publisher creates ad, 2. User browses or runs search, 3. Ad platform holds auction, 4. Publisher's ad is displayed, 5. User clicks ad

If everything goes well, the publisher and platform are happy because they’re earning, the user is happy because they’ve been matched with something that helps them, and the advertiser is happy because they’ve connected with a customer. However, running PPC ads can be complicated and time-consuming, so advertisers will often partner with a pay-per-click advertising service.

Benefits of Using a Pay-Per-Click Advertising Service

Working with a pay-per-click management company can transform your ad experience and improve overall digital marketing results. Before we dig into the other aspects, let’s first look at some benefits of working with pay-per-click advertising agencies.

PPC returns $2 for every $1 spent, per TechJury.
PPC agencies can produce instant results because your ads start displaying as soon as you launch.
You can target specific audiences or personas with PPC to maximize your budget.
You can tailor your ads to meet unique company goals, such as boosting brand awareness, increasing sales, or boosting retention.
Results are easily measured, so you can see exactly what’s working and how prospects behave.
PPC complements other forms of marketing, so you get better results overall.
PPC management firms can take care of everything for you so that you can focus on the day-to-day needs of your business.

PPC vs. SEO: Which One Should You Choose for Your Business?

One of the greatest debates in digital marketing is whether SEO vs. PPC is best. It’s a trick question. This is one example of how PPC complements another form of digital marketing. Companies that leverage both together dominate search results for branded terms, create a seamless customer journey, boost conversions, and obtain more data, so it’s easier to make educated decisions that improve the effectiveness of all digital marketing initiatives going forward.

But, let’s say you can’t kick them off at the same time. Where do you start? If you’re trying to decide whether to hire an SEO company or pay-per-click advertising service first, it makes sense to start with SEO because it takes longer to see returns. You can begin SEO efforts and launch your PPC campaigns while waiting for SEO to work so your business gets results faster.

However, pay-per-click companies are your best bet if you can only invest in one area because they’ll immediately increase sales. You can then apply that cash to running more PPC ads or toward SEO initiatives.

Why Most PPC Campaigns Fail

One of the biggest complaints people have while going solo or before finding the best PPC agency for their needs is that PPC doesn’t work for them. In reality, paid ads can work for most businesses. However, PPC campaigns fail for a variety of reasons, such as:

Not using negative keywords.
Sending users to a homepage instead of a dedicated landing page.
Using massive ad groups that are difficult to manage and make targeting impossible.
Using ineffective CTAs.
Not working with a PPC pro or experienced pay-per-click agency.

How to Maximize Your PPC Marketing Budget to Get More Leads

Pay-per-click management companies optimize campaigns to generate the most leads possible consistently. You can apply the same strategies pay-per-click advertising companies use to improve the effectiveness of your campaigns too.

Research your competitors to see if they have ad strategies you want to emulate or are leaving gaps you can fill.
Target the right audience to ensure your budget is only spent on people likely to convert.
Increase your ad budget so your ads display more often.
Check out pay-per-click marketing agencies and have an expert head up your advertising.

How to Write Ad Copy That Converts

PPC advertising companies employ writers that specialize in ad copy. If you’re trying to write killer ad copy on your own without the help of PPC marketing companies or copywriters, try to emulate the approach as much as possible.

Get to know your audience, keywords, competitors, and platforms before you start.
Identify which assets you’ll need, including ads, graphics, and landing pages, to create a cohesive experience.
Focus your ad copy on the solution, not the product or its features.
Consider what objections your reader might have and eliminate them with your writing.
Craft a compelling CTA that nudges readers to take the next step.
Make the most additional assets to boost clicks, like sitelinks and graphics.
Leverage strategies that increase clicks, like keywords, power words, and numbers.
Draft multiple versions of each ad you create.
Dedicate time to continuous optimization strategies, such as A/B testing.

Choosing Whether to Manage Ads In-House or Outsource to a Pay-Per-Click Agency

Now that we’ve covered the background, you’re probably wondering if you should outsource to a pay-per-click advertising firm or manage PPC in-house. The decision typically comes down to whether you really have the expertise to handle them in-house. PPC companies don’t put just one person in charge of PPC. There are typically copywriters, graphic designers, developers, PPC specialists to address the technical aspects of setups, and more. This is because there are many jobs involved, and campaigns perform better when someone with experience in each area handles those tasks.

Conversely, small businesses don’t typically have these types of teams. It’s often the business owner or a marketer who is already managing SEO, social media, and dozens of other things, who is tasked with PPC. This person is rarely an expert in any one area and doesn’t have the bandwidth to perform ongoing tasks. As a result, around 25 percent of PPC budgets are wasted, according to Search Engine Land.

Managing PPC in-house can be a sound decision if you can build a full in-house team of specialists. If your brand isn’t at that stage yet, you’ll get better results and greater ROI by outsourcing.