What Does PPC Stand For and How Does Paid Media Work?

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Maybe you’re new to the marketing world, or you’re a small business owner trying to advertise, but either way, you’re wondering what in the world PPC is. Understanding this marketing tactic and how it works is crucial as a business owner, and that’s why we’re sharing what the acronym stands for and why it’s beneficial for you!

What Does PPC Stand For?

PPC stands for pay-per-click. It is a digital advertising strategy where businesses display ads on various platforms. Some of the most popular places include Facebook, Instagram, and Google. You’ll only pay if someone clicks on your ad. This marketing strategy is an effective way to drive traffic to your website and promote your products while maintaining your budget.

google ads homepage

How Does PPC Work?

PPC probably sounds simple enough, but in order to get the results you want, you’ll have to put in some work up front. Here are the basic steps of creating a PPC campaign:

1. Keyword Research

The first part of creating a PPC campaign is keyword research. You need to know what queries your ideal customer is searching around your products so you can create an ad that is perfect for them.

2. Ad Creation

Once you know what keywords you want to target, you can create your ad. This includes writing ad copy that includes the keywords and the graphics that will be shown in the ad space.

graphic designer creating a logo on a computer

3. Bidding

You’ll need to place bids on the keywords you want to target. This bid amount represents the maximum of what you are willing to pay for a click on your ad.

4. Ad Placement

Search engines and advertising platforms use various factors, like bid amount, ad quality, and relevance, to determine what ads will be displayed to users.

5. Ad Display

When a user searches for a keyword, the search engine or platform runs an auction to determine which ads will be displayed in the search results. The ads with the highest combination of bid and ad quality get shown.

ppc ads search on google

6. Clicks and Costs

When a user clicks on your ad, you are charged the amount of your bid. The cost per click (CPC) can vary depending on competition for the keyword, your bid amount, ad copy, and landing page.

7. Conversion Tracking

To measure the effectiveness of your PPC campaign, it’s essential to track conversions. This could be a sale, a lead form submission, or any other action you consider valuable.

8. Optimization

Continuous monitoring and optimization are crucial for a successful PPC campaign. Adjust your bids, refine your ad copy, and target the most effective keywords to improve your campaign’s performance.

google ads optimization recommendations

9. Budget Management

Advertisers set a daily or monthly budget to control their spending. Once the budget is exhausted, the ads stop running until the budget is replenished.

10. A/B Testing

Testing different ad elements, such as headlines, ad copy, and landing pages, can help refine your campaign and improve conversion rates.

PPC marketing is an ideal marketing tactic since you can target specific audiences effectively and closely control spending. And since you know what PPC stands for and have an idea of how it works, you’re ready to start creating ads for your business!

If you’re feeling overwhelmed at the thought of researching, writing, creating, and monitoring PPC ads for your business, you don’t have to do it alone. Reach out to our paid ad experts to find out how they can assist you with your marketing needs.

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