What is Google Ads PPC?
Pay Per Click (PPC) Defined
“Google Ads is Google’s pay-per-click (PPC) advertising solution, which allows businesses and website owners to bid on key terms/phrases. Advertisers pay a fee each time one of their ads is clicked. You get to choose your daily budget and then pay when someone clicks on your ad. This gives you the advertiser the chance to show an ad next to searches on Google.com, right when people are looking for what you have to offer”. (Google Ads, 2021)
What are the Benefits of Google Ads PPC?
Relevance: Google Ads helps you connect with the right people, at the right time, with the right message.
Control: Google Ads gives you complete control over your budget, you choose how much to spend per month, per day, and per ad.
Results: With the PPC model you only pay for results you want, like clicks to the website or calls to the business.
How does Google Ads PPC Work?
As mentioned above, Google Ads operates under a pay-per-click (PPC) model. That means you target a specific keyword on Google and make bids on the keyword — competing with others also targeting the keyword. The bids you make are “maximum bids” — or the maximum you’re willing to pay for an ad, you can also let Google do the bidding for you with smart bidding.
Google AdWords Glossary
Terms you Should know Before Setting up a Google Ads PPC Campaign
Search engine marketing (SEM) = a digital marketing strategy used to increase the visibility of a website in search engine results pages (SERPs). Alternately referred to as paid search or PPC.
Audience = Audiences are made up of segments, or groups of people with specific interests, intents, and demographic information, as estimated by Google. When adding an audience to a campaign or ad group, you can select from a wide range of segments.
– Affinity Audiences: Affinity audiences are useful to advertisers who are looking to raise awareness and drive consideration among affinity groups that have a strong interest in similar products/services. Reaching potential customers based on their lifestyles, passions, and habits.
– In – Market Audiences: In-market audiences allow you to find customers who are researching products or services and actively considering buying something like what you offer. Made for advertisers that are more focused on gaining conversions from potential buyers.
– Remarketing Audiences: A way to reach people who have previously interacted with your products or services.
Targeting = A way for advertisers to narrow the focus of their SEM campaigns to a subset of possible audiences. Targeting works like a set of filters to make your ad appear based on geography, time, age, gender, or device.
Bid = Like an auction, this is the amount you’re willing to be charged for a click on your ad. It is usually a “not to exceed” amount, so the cost may be quite less than your bid.
Click = The action a potential customer takes when selecting a link in your ad, via a mouse-click or touchscreen, for example. The clicked link may take the person to your website, to an app store page, trigger a telephone call from a mobile device or show directions to your location.
Click-through rate (CTR) =The percentage of people who clicked an ad that was presented in search results. Measuring CTR is a common indication of how well ads or keywords are performing. The average CTR across all industries for Google search ads is 1.91%.
Conversion = A desired action that a person takes as a result of clicking your ad. Conversions are most commonly defined as completing a purchase, registering for an event, making a phone call, visiting a store and subscribing to a newsletter.
Cost = In pay-per-click advertising, this is the amount an advertiser pays for their ads that were clicked. You control costs by setting budget limits and improving the targeting of your ads.
Cost per acquisition (CPA) = A calculation of total cost spent divided by the number of conversions the advertiser received, such as the number of new customers or purchases occurred.
Cost per click (CPC) = The price an advertiser pays for a click on an ad from a potential customer. Advertisers watch this number closely as they evaluate the effectiveness of their ads.
Impressions = In PPC advertising, the number of times an ad appears as a result of a search on a search engine.
Keyword = Words or phrases that ad campaigns are based upon. You choose them depending on what you feel potential customers are looking for when searching with those words or phrases. The campaign keywords are what trigger the ad to display.
Landing page = The page on your website where searchers arrive after clicking on your ad.
Goals = A particular action that you want to track in Google Analytics, which will help you understand how well your site is achieving its objectives. A goal can include completing a ‘contact us’ form (for a lead generation site), a social share or a minimum time spent on a page (for a media page).
Ecommerce Goal = A particular type of goal that shows when a website user has made a purchase. Unlike normal goals, this includes the concept of how much a user has spent.