The Future of PPC: Where will we be in the next 5 years?

Future of PPC: Pay-Per-Click (PPC) is a term found in the language of every modern marketer nowadays. Businesses use PPC to drive traffic and conversions from search engines. Therefore, PPC plays a vital role in the online marketing strategy.

A PPC campaign is a great way to promote your business online because it allows you to reach people actively looking for what you have to offer, especially if the company provides products or services that are hard to find in certain regions. 

PPC ads aim to direct traffic to a specific point or generate concrete action among users: obtain leads, increase sales, etc. To evaluate the suitability of starting an online ad campaign, e-commerce must first analyze the brand’s digital presence to understand what is missing or not working and weigh the cost-benefits of advertising for the company. Also, for your campaign to be a success, you need to take into account the following aspects:

What they are and why to use them

Nowadays, anyone has searched for service information on Google at least once. When users type a keyword related to the product or service they are looking for, Google returns a series of results defined as “organic” or “paid”.

The positioning in Google’s organic results is achieved through SEO strategies, and reaching the first page of the search engines or the first position is a job that takes a long time and is difficult to guarantee.

The positioning in the paid results, on the other hand, is obtained with a strategy known as Pay Per Click on Google Ads and allows you to immediately gain visibility as a budget is allocated to appear in one of the positions of Google’s paid results. The advertiser pays a fee (which varies according to the reference sectors, competition, site optimization and keywords) every time a user clicks on the advertisement.

PPC is a very useful tool for acquiring new visitors to your website and increasing the likelihood that they will turn into customers, directly controlling the expense and return on investment. This article covers the basics of Pay-Per-Click (PPC), discusses how it works, and helps you understand how to get the most out of it.

What is Pay-Per-Click?

The pay-per-click model is an online advertising model that allows advertisers to bid on keywords, i.e. words or phrases typed by web users, to better position the search engine results page (SERP) for those specific searches. 

Advertisers bid for placement in the “sponsored links” section of search engine results pages or through ad exchanges via an auction process that can be automated.

PPC auctions are dynamic real-time bidding with advertisers competing to display their ads on search results, websites, or coupon sites. They are incredibly effective for quickly driving traffic and large volumes to a website, page, or offer.

How does the Pay-Per-Click model work?

Advertisers bid on keywords used by consumers when searching online. Bidding is typically done through an automated online process where advertisers indicate how much they are willing to pay per click or impression (CPC / CPM). This is called automatic bid management, provided by most third-party pay-per-click providers such as Google Adwords.

There are two types of costs associated with this advertising model: cost per click (CPC), the amount that the advertiser pays each time a user clicks on their ad, and cost per thousand impressions (CPM), by charging advertisers the number of views their ad received.

Typically, the most popular websites use CPM because it gives them a steady revenue stream. However, less popular sites may use CPC because it’s easier for advertisers to control how much they spend on their ads.

How keywords work in Pay-Per-Click advertising

Keywords are an integral part of pay-per-click (PPC) advertising because they help determine which ads are shown to users searching online.  When a user uses a search engine, the user’s query is compared to keywords on websites that are part of AdWords campaigns. Ads can include variations of the key phrase or show an ad relevant to only part of the key phrase.

The benefit of matching keywords to a user’s search is twofold: it allows advertisers to show ads directly relevant to what users want and ensures that ads aren’t shown when there is no match.

These benefits increase click-through and conversion rates for PPC ads, allowing advertisers to get more value from their campaigns.

Features and benefits of a PPC campaign

Many companies think that Search Engine Optimization (SEO) is enough to boost rankings. However, it is not the fastest and most guaranteed way. Furthermore, PPC generates twice the number of visitors as SEO. Let’s see some key components of a PPC campaign:

  • adequate account structure and organization;
  • Eye- catching, well-designed advertising images that grab attention and attract clicks;
  • a realistic budget considering bidding strategies and keyword match types;
  • relevant announcements, in an organized and coherent way, to create a positive image of the company in the eyes of users;
  • Ads and landing pages must match and not be too similar to each other to avoid confusion.

The use of Pay-Per-Click (PPC) advertising, therefore, can have significant benefits if done correctly. It is ideal for small businesses with little traditional advertising exposure to gain an online presence and increase their visibility on search engine results pages.

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