PPC (Pay per Click) – What is PPC?

PPC (Pay Per Click), also known as pay per click, is a type of advertising that is based on paying a stipulated amount for each click a user makes on the advertisement.  

We can find this advertising model in a large part of the advertising campaigns carried out online. It must be taken into account that PPC marketing is one of the most used in digital marketing because it has the advantage of being able to control the results in real time, thus also allowing adjustments to be made to the campaigns.    

 

Índice

  1. Where PPC ads are used
  2. Metrics related to PPC

Where PPC ads are used

PPC model ads are often found in online campaigns. Some of the most common PPC ads are:

  • Social media ads:  The pay-per-click model is often found in social media advertising. Some platforms, such as Facebook Ads, offer the option of running PPC campaigns where we can carry out truly effective segmentation taking advantage of the basic information available on social networks.

  • Search engine ads:  Search engines also offer the ability to display PPC ads. They are usually found before the search results, or in the sidebars. To place an ad on search engines like Bing or Google we will have to do it through an auction where we will bid for the maximum CPC that we want to pay for our keywords. 

  • Advertisements on web pages:  advertisements can also be placed on web pages visited by users with similar interests. This is known as display advertising, and consists of displaying advertising banners in a non-intrusive manner on the web pages visited by a specific user or group of users.

Metrics related to PPC

In PPC you pay for each click on the ad, so the cost of the advertising campaign will grow the more clicks the ads have. To control the cost and results of a campaign and know the status in which it is, it is convenient to take into account the following metrics, which also help to understand the meaning of PPC:

  • CPC (Cost Per Click):  the cost per click is the fixed price that will be paid for each click on the ad. This is usually determined through an auction where advertisers bid with the maximum cost they are willing to assume per click, or sometimes it is negotiated directly before starting the advertising campaign.

  • CTR (Click Through Rate):  The Click Through Rate is the percentage number of users who click on the ad compared to the total number of users who have seen the ad. This is often an important metric for setting an ad’s CPC, as higher quality ads typically have a higher CTR and are rewarded with a lower CPC.

  • Frequency:  is the number of times the ad has been shown to the same user.

  • Conversion:  represents the total number of users who have carried out the expected action (such as a registration or purchase) compared to the total number of users who have clicked on the ad.