How Does Pay-Per-Click (PPC) Advertising Work?

How Does Pay-Per-Click (PPC) Advertising Work?

PPC is a quick and simple method of promoting your company to a target market. For the campaign to be evaluated for success, it must have a minimum of one aim or objective. Usually, this is something simple like completing a lead form or download a PDF brochure from your website.

Keywords, keyword phrases or search terms that buyers are likely to use to find your product or service prompt adverts to appear at the top of search engine results pages – usually with a slightly shaded background or “Ad” notice to show they’re a paid ad.

The campaign is then often evaluated based on the number of clicks it generated to the website and the percentage of those clicks that resulted in the achievement of one or more of your objectives. This then provides concrete information about how much it can cost to receive leads and/or website sales to your company.

The following are just a few of the numerous variables that will determine your cost per click:

  • Your industry’s level of competition
  • The degree of competition for the search term you select
  • The calibre of your advertisements
  • The destination page’s quality
  • The amount per click that you are willing to pay

And some of these don’t come cheap. The cost per click of some highly competitive industries include:

  • Financial Services: £13+
  • Insurance and Business Services: £11+
  • Internet & Telecommunications: £11+
  • Property / Estate Agents: £10+

Therefore, your budget may just allow a few clicks every day, which will limit what it can accomplish for you, if it only allows £1,000 a month (about £30 per day) and your business is extremely competitive.

It’s critical to keep in mind that the user experience on the destination website is what determines whether a PPC campaign is successful in the end.

Any achievement will be swiftly undermined by a poorly designed website contact form that turns people off, even with a high performing PPC campaign that generates large volumes of quality hits.

Ensuring a positive onsite user experience is crucial before launching a possibly expensive PPC campaign.

The two main competitors for search clicks are Google Adwords and Bing – although Google accounts for over 90% of UK search traffic, so it’s likely you can live without Bing entirely. Depending upon your industry and target market, you may also wish to consider social PPC (Facebook Ads, Twitter Ads, LinkedIn Ads etc).

Stewart Curtis
Stewart Curtis

Stewart is a CIM-qualified Digital Marketing Professional with 15+ years experience across various industries including sport, energy, environmental, software and professional services. He started ShakerMaker Digital in 2020 and has thoroughly enjoyed the diversity of agency management, supporting 50+ local organisations with various digital projects.