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Why a PPC Plan is Important

What is PPC (Pay Per Click)

PPC stands for pay-per-click, a model of digital advertising where the advertiser pays a fee each time one of their ads is clicked on. You’re paying for targeted visits to your website (or landing page or app). When PPC is working correctly, the fee is trivial because the click is worth more than what you pay for it. For example, if you pay $3 for a click, but the click results in a $300 sale, then you’ve made a hefty profit.

PPC ads come in different shapes and sizes (literally) and can consist of text, images, videos, or a combination. They can appear on search engines, websites, social media platforms, and more. The cost of each ad can be managed according to user affordability. PPC ads can be paused or canceled at any time.

What is Used to Measure PPC?

There are platforms, tools, and resources across the web to evaluate, monitor, and measure the keywords for your competitors and/or your organization and give you important data through analytics reports. These platforms such as Spy Fu or SEMrush range in price and solutions and incorporate other features that will assist a company in its PPC growth.

A PPC report aka an analysis can be run through the above-mentioned platforms. A PPC report is exactly what it sounds like. It is used to show the results of the PPC keyword campaign.

What Do the Reports Do, What Do They Measure?

Monthly generated PPC reports will demonstrate whether the company is meeting its goals and in which areas they need to improve. Updating keywords to generate a better analytics report is a task and should be reviewed monthly. If the values are low the words need to be updated for the following ad and so on.

The key metrics include the following:

  • Clicks – the number of times the ad has been clicked on.

  • Cost per click – aka ad spends and CPC.

  • Click-through rate – the measure of how many people have clicked through and reviewed the ad from start to finish. The higher this is the better.

  • Conversion rate – a measure of how effective a website is in converting a visitor

  • Cost per conversion - This really is the bottom line. How much has it cost you to generate a conversion? Is it cost-effective? Are you getting a decent rate of return aka ROR? Meaning are you generating more revenue than ad spend?

Overview and Theory

Examining the competition aka peers in the industry allows us to see how they are using keywords, how much they pay monthly, and how they are performing. This is done by taking a look at some key metrics from competitors across the web. Then after this, the next thing to do is to run ads using similar phrases.

The theory with PPC is that when done well it works hand in hand with SEO similar to a marriage between two people that really get along and work well together to succeed in life. Just like a marriage that may need some therapy and tweaking along the way, PPC methodology and strategies should be updated in order to stay competitive on Google.

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