Pay per Click (PPC) Definition

PPC stands for pay-per-click, an online advertising system in which advertisers pay for one of their online ads each time a customer clicks. PPC marketing is an efficient and affordable way to promote your products or services or, if you are in an agency, the products or services of your customers to the most valuable audiences.

PPC definition and benefits

Advertisers can't just spend more on making sure their ads appear more popular than the ads of their rivals. Rather, ads are subject to what is known as the Ad Auction, a fully automated procedure used by Google and other significant search engines to determine the significance and legitimacy of advertisements appearing on the resulting websites of their search engines, also recognized as SERPs.

How to Calculate PPC?

Although there are lots of metrics to calculate PPC cost, there is one that could do the trick. Return of Ad Spend(ROAS): ROAS just PPC revenue minus PPC cost moreover it's usually shown as a percentage result. For example, if your sales from PPC are $1,000, and you paid $500 for PPC click costs, your ROAS would be 100 percent:

($1000 profit – $500 cost = $500) / $500 cost = 1.0 = 100%

The ROAS calculation's appeal is in its simplicity. Often, executives can do the calculation in their brains, making optimization on the fly simple to conduct.

Benefits of PPC Ads

Benefits of PPC Ads

Boots your web traffic: Pay-per-click advertising (PPC) can be a cost-effective way of increasing traffic to your website. Having your paid advertisement appear on the first page of search engine results increases your chances of being seen and making users take desired action.

Quick Results: It is fast meaning that you will see the result of your PPC actions almost immediately.

Checking for Right Keyword: It is targetable. You can test your keyword to find which one is suitable for your website and business.

You Only Pay for Clicks: Generate revenues while being able to control costs. So, you only pay when someone clicks to your ad.

You Can Control the Costs: You can work with your budget. You have absolute control over how much you want to spend. Also you can constantly change your ad budget within your limits.

Difference Between PPC and SEO?

Pay-Per-Click (PPC) and Search Engine Optimization (SEO) are both advertising strategies of the Search Engine Marketing (SEM).

The primary distinction between PPC and SEO is that PPC includes charging for supported advertising to show outcomes on a search engine page while SEO includes optimizing a website to organically activate a booking on the results page of a search engine.

You have to put extra work to increase your list rank when using SEO, In your meta description keywords and the content should be relevant.That creates what is called organic web traffic. It is slow, sturdy but making difference takes months.

Showing List Rates between PPC and SEO

On the other hand PPC is literally paid ad. Name is pay-per-click, so you pay for your traffic and it takes place above of the Organic traffic. It is bird-eye view for your ad campaign to see results more clearly and faster. Some market analytsis believe that having a site return in the organic results can influence your perceived credibility with a targeted audience.

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Call-to-Action

Click-to-Open Rate (CTOR)

Click-Through Rate (CTR)

Conversion Rate

Cost-per-Click (CPC)

Customer Acquisition Cost (CAC)