What Are PPC Ads, and Do They Work?

You may have heard that PPC ads (pay-per-click) can help your website appear in conspicuous places on search engines, but what are PPC ads, and how do they work?

PPC advertising is a unique form of paid advertising model where advertisers only pay when users click on their ads. So, in the case of PPC ads, instead of incurring costs just for displaying your ads, you only pay when a user takes an extra step by clicking on your ad. The ad may be a link to your website landing page or an app.

If you are running a small or medium business, one successful PPC campaign can skyrocket your business revenue. So, it’s important you understand how PPC works and how it can help you reach new customers.

How PPC Ads Work

PPC as an advertising model covers several ad platforms (for example, Google Ads and Bing Ads) and different ad formats, including:

Search ads
Display ads
Video ads
Shopping ads
Gmail ads

Google Ads (formerly Google AdWords) is the most popular PPC platform because it provides access to the largest pool of potential customers. It also offers several ad options based on your campaign goals.

Setting up a PPC campaign generally follows the same process irrespective of the ad platform or format:

Choose the ad platform and create an advertising account with them.
Select the campaign type based on your goal.
Define your ad settings and target (audiences, devices, locations, etc.).
Set your budget and bidding strategy.
Create the ad and add the URL.

In the case of PPC, advertisers commonly bid for their ads to appear in the available ad spaces, a process we will explain in greater detail below.

Ad Auction: How Ad Platforms Decide Ad Placement

To understand the ad auction process, you need to understand three terms: maximum CPC ( cost-per-click), quality score, and ad rank.

When setting up your ad on Google or other platforms, you’ll choose your maximum CPC. This is the highest amount of money you’re willing to pay for each click. Generally, the higher the amount you set as your maximum CPC, the higher your chances of appearing at the top positions.

However, Google also uses a quality score as a factor when deciding ad placement.

Your quality score ranges from 1–10. According to Google, it is “meant to give you a sense of how well your ad quality compares to other advertisers” for a particular keyword.

Google uses the combined performance of 3 components to calculate your quality score:

Expected clickthrough rate (CTR), which is the likelihood that users will click your ad when they see it
Ad relevance, which shows how closely your ad matches the intent behind a user’s search
Landing page experience

Your ad rank is the position of your ad on the SERP (Search Engine Result Page). Your maximum CPC and quality score influence your ad rank.

Does Pay-per-Click Advertising Work?

If you’re considering trying out PPC ads, you may wonder: “Are PPC ads worth it?” The answer is yes. The ROI you may get from a successful PPC campaign can be well above what you spent. In fact, Google claims that advertisers can get $8 for every $1 spent on PPC ads.

Here are some PPC ads benefits:

High Buying Intent

People conduct searches on Google when they are actively searching for a solution or a product. When you select a keyword that has a buying intent, many of those that will come across your ad are users who are ready to make a purchase. Little wonder Google Ads receive 65% of the clicks of users ready to buy.

Fast Result

PPC ads can give you fast results, unlike some marketing strategies like SEO (search engine optimization), which usually take time to produce any tangible result. As a small business with low domain authority, PPC ads may be your only chance to appear in the SERP’s top position fast.

It is Measurable

You can always track and measure the result you’re getting for every dollar spent on PPC. You can run an A/B split test and identify the keywords, offers, or landing pages that will perform better.

Targeting Option

PPC ads allow you to define your ideal clients based on their demographics, such as age, location, interest, and gender, and target them with your ads. You can also run retargeting ads to show your ads to people who clicked on your ad but didn’t buy.

Multiple Ad Formats

With PPC ads, you have different ad formats to choose from based on your needs. There’s the shopping ad ideal for e-commerce stores, and display ads to run retargeting campaigns.

How To Create Profitable PPC Campaigns

Here are some tips for creating successful PPC campaigns:

Choose the Right Keyword

Choose relevant keywords that show a buying intent. You can also use negative keywords to prevent your ad from appearing on searches containing those keywords. This helps prevent waste and maximize ROI.

Optimize Your Landing Page for Conversion

Your landing page, where you send users after they click on your ad, is your opportunity to convert them to customers or leads. So, focus on creating a compelling landing page that provides a seamless experience. Your landing page should match the search intent and expectations. A landing page that ticks these boxes will help improve your quality score, which will give you a better ad rank.

Perform A/B Split Test

Don’t make assumptions. Always test your PPC ads components: headline, description, keywords, and landing page to discover changes that can improve your result.

Hire a PPC Team of Experts

Running and managing a successful PPC campaign requires some level of experience and skill that you may not have. Hire an expert team like NeONBRAND and let them put their experience and expertise to work for you.

Our PPC team of experts at NeONBRAND has helped several Las Vegas small businesses run wildly successful PPC campaigns. Contact us today to discover how we can help you run profitable PPC campaigns to power your Las Vegas advertising and drive business growth.

What Are PPC Ads, and Do They Work? A Guide for Las Vegas SMBs