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Presentation about Pay-Per-Click
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Pay Per Click Advertising (PPC)
Akmam ChowdhuryAgila ElsaidKawthar Jan
Pay-Per-Click (PPC) advertising is an old marketing model with a long history that
started at the end of the 1990s during the dot com boom, however (due to rampant
problems with click fraud) most advertisers have switched for advertisements on
other websites in favor of CPA and CPS affiliate marketing.
Google started search engine advertising in December 1999. It was not until
October 2000 that the AdWords system was introduced, allowing advertisers to
create text ads for placement on the Google search engine. However, PPC was only
introduced in 2002; until then, advertisements were charged at cost-per-thousand
impressions. Overture has filed a patent infringement lawsuit against Google, saying
the rival search service overstepped its bounds with its ad-placement tools.
History
Definition
Pay-Per-Click advertising also known as PPC is a form of online advertising whereby
internet users are directed to an advertiser’s website after clicking on
advertisement. This marketing method involves keywords and phrases in small
text ads. Advertisers bid on keywords or phrases to get ads displayed in search
engine result pages. Ads can also be displayed on other web sites provided by the
service you are using for your ad campaigns. Many search engine providers have
PPC offerings, the most notable & profitable are Google, Yahoo & MSN.
The mechanism of PPC
Choosing PPC as a method for web advertising campaign can have a numerous
benefits if it was planned, founded and monitored properly. Planning a successful PPC
campaign is none other than doing all researches thoroughly and making sure the right
gears have been set to the right direction without wasting valuable time and resources.
So what are the steps of a successful PPC??
Define attainable goals: setting clear and simple goals for the campaign make it
so easy to achieve and reach. For example: Raising brand awareness, increasing traffic
volume and sales figures.
Set up appealing Campaigns: having a relevant geographic and or demographic
targets helps to track campaign efficiently.
Develop tightly themed Ad Groups: the more relevant your ad text is the higher
the CTR (click through rate), the Quality Score and the Page Rank. As for Ad Text
Optimization, place catchy calls to action and inter- capitalize your display URL. For
instance, instead of having www.helpmyresume.org,show ww.HelpMyResume.org In
addition, rotate various ads and you can track individual performance.
Keyword research (niche research): coming up with keywords from the User’s
perspective, not the business’s is actually vital to the entire business itself. Using the
right keywords will unlock your path towards a successful pay-per-click advertising
campaign.
Landing Page Optimization: having an effective layout landing page makes it so
easy to monitor and measure the efficiency of different advertisements.
AccountUnique e-mail address & password
Billing informationAccount preferences
CampaignStart & end dateDaily budgetGoogle Network preferenceLanguage & location targeting
CampaignStart & end dateDaily budgetGoogle Network preferenceLanguage & location targeting
Ad GroupOne set of keywords
/ placements one more Ads on CPM or
CPC bids
Ad GroupOne set of keywords /
placements one more Ads on CPM
or CPC bids
Ad GroupOne set of keywords /
placements one more Ads on CPM
or CPC bids
Ad GroupOne set of keywords
/ placements one more Ads on CPM or
CPC bids
How to start Google Ad Wards
Determining cost per click
There are two primary models for determining cost per click: flat-rate and bid-based. In
both cases the advertiser must consider the potential value of a click from a given source.
This value is based on the type of individual the advertiser is expecting to receive as a
visitor to his or her website, and what the advertiser can gain from that visit, usually
revenue, both in the short term as well as in the long term. As with other forms of
advertising targeting is key, and factors that often play into PPC campaigns include the
target's interest (often defined by a search term they have entered into a search engine, or
the content of a page that they are browsing), intent (e.g., to purchase or not), location
(for geo targeting), and the day and time that they are browsing.
1)-Flat-rate PPC:
In the flat-rate model, the advertiser and publisher agree upon a fixed amount that will
be paid for each click. In many cases the publisher has a rate card that lists the CPC
within different areas of their website or network. These various amounts are often
related to the content on pages, with content that generally attracts more valuable
visitors having a higher CPC than content that attracts less valuable visitors. However, in
many cases advertisers can negotiate lower rates, especially when committing to a long-
term or high-value contract.
The flat-rate model is particularly common to comparison shopping engines, which
typically publish rate cards. However, these rates are sometimes minimal, and
advertisers can pay more for greater visibility. In many cases, the entire core content of
these sites is paid ads
Bid-based PPC
In the bid-based model, the advertiser signs a contract that allows them to compete against other
advertisers in a private auction hosted by a publisher or, more commonly, an advertising network. Each
advertiser informs the host of the maximum amount that he or she is willing to pay for a given ad spot
(often based on a keyword), usually using online tools to do so. The auction plays out in an automated
fashion every time a visitor triggers the ad spot.
When the ad spot is part of a search engine results page (SERP), the automated auction takes place
whenever a search for the keyword that is being bid upon occurs. All bids for the keyword that target
the searcher's geo-location, the day and time of the search, etc. are then compared and the winner
determined. In situations where there are multiple ad spots, a common occurrence on SERPs, there
can be multiple winners whose positions on the page are influenced by the amount each has bid. The
ad with the highest bid generally shows up first, though additional factors such as ad quality and
relevance can sometimes come into play.
In addition to ad spots on SERPs, the major advertising networks allow for
contextual ads to be placed on the properties of 3rd-parties with whom they have
partnered. These publishers sign up to host ads on behalf of the network. In return,
they receive a portion of the ad revenue that the network generates, which can be
anywhere from 50% to over 80% of the gross revenue paid by advertisers. These
properties are often referred to as a content network and the ads on them as contextual
ads because the ad spots are associated with keywords based on the context of the
page on which they are found. In general, ads on content networks have a much
lower click-through rate (CTR) and conversion rate (CR) than ads found on SERPs and
consequently are less highly valued
Content network properties can include websites, newsletters, and e-mails.
Advertisers pay for each click they receive, with the actual amount paid based on the amount bid.
It is common practice amongst auction hosts to charge a winning bidder just slightly more (e.g. one
penny) than the next highest bidder or the actual amount bid, whichever is lower. This avoids
situations where bidders are constantly adjusting their bids by very small amounts to see if they can
still win the auction while paying just a little bit less per click.
To maximize success and achieve scale, automated bid management systems can be deployed.
These systems can be used directly by the advertiser, though they are more commonly used by
advertising agencies that offer PPC bid management as a service. These tools generally allow for bid
management at scale, with thousands or even millions of PPC bids controlled by a highly automated
system. The system generally sets each bid based on the goal that has been set for it, such as maximize
profit, maximize traffic at breakeven, and so forth.
The system is usually tied into the advertiser's website and fed the results of
each click, which then allows it to set bids. The effectiveness of these systems is
directly related to the quality and quantity of the performance data that they
have to work with - low-traffic ads can lead to a scarcity of data problem that
renders many bid management tools useless at worst, or inefficient at best.
How does bidding work?
When we set up keywords we specify the amount we are willing to pay for each
click through to our website. Based on our bid & our quality score, Google will place
our Ad in the search results at the position they see fit
Key in keywords or website URL from
search engine
Click PPC Ad
Direct Linking
Affiliate linking page pre-selling build lists
Merchant website
Authority site Affiliate Networks
Purchase Eam
Click away
Differences between Flat rate (Budget) & Bidding
Flat rate (Budget) Bidding
In the flat-rate model, the advertiser and publisher
agree upon a fixed amount that will be paid for each
click.
The amounts are often related to the content on
pages, with content that generally attracts more
valuable visitors having a higher CPC than content that
attracts less valuable visitors.
The flat-rate model is particularly common
to comparison shopping engines, which typically publish
rate cards. However, these rates are sometimes
minimal, and advertisers can pay more for greater
visibility.
In the bid-based model, the advertiser signs a
contract that allows them to compete against
other advertisers in a private auction hosted by a
publisher or, more commonly, an advertising
network. Advertisers pay for each click they
receive, with the actual amount paid based on the
amount bid.
The ad with the highest bid generally shows up
first, though additional factors such as ad quality
and relevance can sometimes come into play.
It is common practice amongst auction hosts to
charge a winning bidder just slightly more (e.g. one
penny) than the next highest bidder or the actual
amount bid, whichever is lower. To maximize
success and achieve scale, automated bid
management systems can be deployed.
Benefit and reasons of using PPC advertising
PPC advertising offers the fast & quantifiable methods of generating excellent level of
traffic to our website &can easily be used in conjunction with any form of online and offline
advertising to create a potent marketing mix.
If managed correctly PPC marketing generates targeted visitors to our website.
Get instant visibility
Cost to enter is small
Easy to track ROI
The advantages of pay per click marketing are-
Instant increase in traffic: This strategy of pay per click marketing works marvels because the
advertisement gets displayed on networks as it is set up. So this implies that you get visitors within
minutes and no other strategies tend to match up with PPC marketing. There are various other methods
that actually take weeks or even months to show effect. However, with PPC you can get visible results
within a few minutes and hours.
Controlling the ad: Through the method of PPC marketing one can choose when your ad should be
displayed, and also determine the maximum amount that you are willing to pay for particular keyword.
There are options of choosing the daily budget and one can also track and monitor the results given
through ads. You can modify the results accordingly.
Targeting visitors: Through PPC marketing, you can benefit by getting visitors, who are already
looking, for similar kinds of product or websites. Hence, the advertisement would offer you with
relevant keywords that are focused only on highly targeted visitors that may convert into customers.
Paying only for one click- Another benefit of pay per click marketing is that you have to
pay only for one click. There are no additional charges for any kinds of ad impressions or ad
view. Hence, there is a need to pay only when somebody clicks your ad and there are no charges
for display.
Easy usage- Even the newbie's can easily set up and use the pay per click marketing
campaigns within minutes. The easy usage ensures additional benefits for all investors.
Disadvantages of pay per click marketing
Paid marketing- This pay per click marketing service is not for free and so one needs a
separate budget. It can be a big disadvantage for all the small business owners, and those
who are starting with lower budgets.
Traffic lasts till you pay- In pay per click marketing the visitors come only through click.
So you need to pay for each click and the traffic stops coming in as the campaign stops.
Experience- Setting up would require some expertise as there are chances of very high
losses in the initial days.
Companies Provide PPC for Health care
One of the companies that provide PPC for Health care is The Healthcare Marketing Group; it
provides integrated medical marketing strategies covering all PPC:
Google AdWords and Yahoo Search Marketing
Display Ad Marketing
Contextual Marketing
Behavioral Marketing
Remarketing
This group provides Pay-Per-Click, Search engine optimization, Social Media Management,
Online Reputation Management and Online Marketplace for the physician and other medical
practitioners.