M20: Pay Per Click Advertising: An Introduction

Presenter:
Dr. Tejinderpal Singh
Associate Professor
University Business School

Panjab University Chandigarh

Hello everyone, welcome the first Module of this week and the name of this Module is “Pay Per
Click Advertising: An Introduction”. As we discussed that majority of the traffic to our website
is coming through Search Engines and we should improve our ranking in search research results
by adopting the strategies of Search Engine optimization strategies both on –page and off page.

But, do you think that search engines are the only way through which our visitors, prospects or
customers are reaching to websites? Not at all, there many other ways through which they may
landon our websites. PAY PER CLICK is one of them. So, in this Module we will discuss the
basics of PAY PER CLICK advertising and you will specifically learn

What is PAY PER CLICK Advertising?

What are various forms of Pay Per Click

Why a business should choose Pay Per Click advertising ?

I know you are very inquisitive to learn about PayPer Click Advertising , so without wasting
time , let us start our module, with an aim to move one step ahead in digital marketing.

Just recall our one of the example and this example was about newspaper advertising.

Suppose , you are running a coaching institute and you want to advertise various course in the
newspaper that has a circulation of suppose 1000 readers. Suppose you agree to Rs.100 and
advertised the product. However, only 400 people actually saw you advertisement when it
appeared

Now tell me how much actually you will be charged. Will it be for 1000 readers or For 400
readers
Answer is very simple.

The Advertising Model in off line media works on the basis of total reach not on the basis of
actually views.

So in this case , you will be charged on the basis of 1000 reader even your ad is seen by only 400
readers,

Even if no one will see your advertisement, you will be charged with full amount.

But the scenario is different in case of online advertising where most of the advertising models
work on Pay Per Click

that means you will be charged only , if someone clicks on your advertisement otherwise. You
will not be charged for anything

So, let me formally define but is pay per click advertising

According to WordStrem.

“PPC stands for pay-per-click, a model of internet marketing in which advertisers pay a fee each
time one of their ads is clicked”

Here are few examples of PPC

You can see ads appearing on Search Engines Results, YouTube Ads, Ads on various Websites,
Ads on Social Media etc.

More Specifically, it’s a way of buying visits to your site, rather than attempting to “earn” those
visits organically.

Now let us See what are various forms of Pay Per Click Advertising

Search Engine Marketing

Display Advertising

Social Media Advertising

Remarketing

Shopping Ads

Let us Explain them one by one.

We already know that, any SERP has two types of results i.e Organic Results and In-Organic
Results. To secure the high ranking in organic results you have to optimize your website to make
it search engine friendly. In Digital marketing terminology, it is called Search Engine
Optimization. We also know that securing high ranking in organic results is free of cost and you
need not pay anything to the Google or other popular search engines in this regard.

However, to secure the position in in-organic results is not free of cost and you have to pay the
advertising fee to the Google or any search engine to place your advertising in the search
engines’s inorganic results. But it this case, you will be only charged if someone clicks on your
advertisement, otherwise you will not be charged for anything. That is why it is called Pay Per
Click.

The most important point here. Just paying the higher amount to the Google or any other search
Engine does not guarantee that your ad will definitely appear in search results. No doubt, pricing
is the Important factor but there are other factors too that contribute to whether your ad will
appear or not like keywords, Ad Quality, Quality of landing page, Bidding by competitors etc.
We will discuss all these factors in a while.

Moreover, Search engines are not the only place where searcher happen . A search can happen
at Google Map, it can happen at You Tube, it can happen in shopping etc. Ads can also appear
there. So, these are also within the domain of Search engine marketing

For search Engine Marketing there are Two very Important Platforms that being used worldwide
and these platforms are

Google Ads

Bing Ads.

Without any debate Google Ads is the leader in Search Engine Marketing as it has 92.34% share
in the search engine market followed by Bing (2.64%) and Yahoo (1.81%) (Sourse:
StatCounter, Aug,2019) .

Even in our course, we will use Google ads Platform to learn about Search engine marketing
campaign.
I have discussed with you just the meaning of pay-per-click advertising along with the one but
very important forms of pay-per-click advertising i.e. Search engine marketing. So I will
continue my discussion on the rest of the forms of pay per click advertising in the next part.

Part -2

Just thinks for a while, do you think that our all prospects are coming to websites through Search
Engines or all the time they are on search engines.

Obviously No

They may be on you tube, they be on blogs, they may be on different websites of their interest.

Do don’t you think we should target them their and show our advertisements in the forms of
banner, animations or even in a text form.

Yes, we should.

So, this is nothing, it is call display advertising. Let me explain it.

Display advertising is the important from of PAY PER CLICK adverting.

Just thinks for a while, do you think that our all prospects are coming to websites through Search
Engines or all the time they are on search engines.

Obviously No

They may be on you tube, they be on blogs, they may be on different websites of their interest.

Do don’t you think we should target them their and show our advertisements in the forms of
banner, animations or even in a text form.

Yes, we should.

So, this is nothing , it is call display advertising . Let me explain it.

According to KASTARIA, Display advertising is a form of advertising that conveys a

photographs, or other graphics.

According to Google Ads, Display Ads help the advertiser to the reach people while they’re
browsing their favorite websites, watching YouTube video, checking their Gmail account, or
using mobile devices and apps.
Similar to the Search Engine Marketing, Google Ads and Bing Ads are the most popular
platforms of display advertising. In our course, we will learn how to use Google Ads to run
display advertisements. Just wait for that.

Next , we have social media as an important form of display advertising

You will be surprised to notice that according the report released by McKinsey (2019). We as
Indians are spending the highest amount of time on Social Media in the world. We spend
about 17 hours per week on social media websites like Facebook, Twitter, Instagram, and
others and it is a world record. It is happening all because of cheap android phones and easy
access to 4G services.

So, for marketers, social Media is the important destination to advertise their product or
services because of it high penetration rate especially in India.

Most of the advertising models of Social Media Advertising are based on Pay Per Click that
means you will only pay if someone clicks on your ads.

Going by the importance of social media , we will learn how to use Facebook , Twitter and
Linkedin for Pay PER Click Advertising in the respective modules.

Remarketing

You might have noticed that while surfing the internet you start experience ads of those site
that you visited previously

Suppose, I want to book an air ticket from Chandigarh to Goa through Makemy trip and yet not
finalized the booking. It is very strange to notice that ads of Make my trip start appearing on
other websites as well where my purpose of visiting those sites is all together different.

From marketer’s point of view , it is nothing but it is remarketing and very important form of
PPC . we will learn about remarketing advertising with the help of Google Ads.

Next we have Shopping ads

You must have noticed these types ads on Google search Page or on YouTube. These are nothing
it is part of Google Shopping ads which are essentially a Pay Per Click Ads.

Shopping ads helps the buyers to search for products quickly and easily on Google,
According to Google Ads , Shopping ads allow seller to Control the product information and
maintain the accuracy and freshness of the product information, so that customers find the
relevant, current items they're looking for

Google shopping ads are again managed from Google Ads platform and we will lean about it
shortly.

So, this was the discussion on various forms of pay per click advertising. I am not claiming that
these are the only form of pay click advertising. You may find many more forms of pay per click
advertising once you start exploring this domain. Thanks

PART -3

Now the very basic question, as an online marketer why should I use Pay Per Click format of
advertising in my promotional mix.

There are so many good reasons why a business should use the PPC ads to promote their product
and services. Let us look at few of them-

Pay only, if someone clicks your Ad

This is the whole essence of PPC campaigns that you will not be charged, if no one clicks on
your ads. In other words pay for your ads if someone clicks. So this is a very cost effective in this
way. If a prospect is really interested in your product only then he will click on your ad
otherwise you will not pay for it. So there are high chances that only quality traffic will come to
your website if targeted properly. So this is a win- win satiation for the business as they get
visibility free of cost even few people are clicking on the ads.

Control How to Spend on Ads

Budgeting is important element of overall online marketing campaigns. Pay per click makes it
very flexible. You have full control over your budgeting decision. For example, how much bid
you want to make, How much amount per day you want to spend on ads. If you want to increase
or decrease your bid amount you can easily do it.

What is a bid? I will explain it shortly. Moreover, if you want to stop your ad at any time you do
it instantly. All the decision are at your finger tips and you can take them instantly.

Target Your Audience Precisely

In most of the PPC platforms there are bunch of settings which make it possible to target the
right audience. For example, I want to target the audience on the basis of location that means I
want to show my ad in a particular area. This can be easily done from the location setting of the
any PPC platforms. Similarly, if I want to show my advertisement to particular age groups it is
possible with the help of PPC Campaign Settings.

In case of Search Engine Marketing, targeting of audience is done on the basis of the keywords
that they type in the search engines to search for information, for products or services.

Similarly, in case of display advertisements the targeting is done on the basis of audience interest
and demographics.

We will discuss about all these audience targeting settings in the detail in the respective modules

The fastest way to bring the traffic

You may spend months or years to bring traffic to your website by improving your search
ranking in the organic results with the help of Search Engine Optimization strategy.
However, You will find that the results of PPC campaign are very quick and fast. Designing a
PPC campaign doesn't take much time. Once your campaign is live you can expect that within a
few hours people will start visiting your website and chances of conversion increase with more
traffic to the website. Very impressive!!!

High Return on Investment

As we are discussing that you pay for clicks only. So it is very cost effective. In various PPC
platforms, there is an inbuilt feature to optimize the ads. For example, we can increase or
decrease the bid amount and the budget amount at any time to optimize the ads as lot of data is
available with respect to advertisements in such platforms like Click Through rate, Average Cost
Per Click etc.

The terms may be new for you but we will learn them in a short while

A proper optimization of ads will surely improve your return on investment in PPC scenario. The
Only thing is that you have to learn how to make the maximum use of such data to make our
campaigns successful.
Ad scheduling is Key to PPC

Ad scheduling is very good feature of PPC campaigns. You need not to run your ads 24 hours a
day on the internet. Based on your experience and the data retrieved from PPC platforms, you
can easily schedule your ads by keeping in mind the audience's interaction with your ads. You
can select a particular day/ days and a time frame on each day to show your ads. This feature is
amazing and it will surely help you to reduce the cost of advertisement and to give the quality
traffic to your website.

Statistics are in favor of PPC

Just to understand the importance of pay per click advertising. Let me show you a few stats
from various reports which will strengthen your opinion in favour of pay per click advertising.

1. Search Engine Land, 2019 , 75 percent of people said search ads make it easier to
find the information they’re looking for

2. For every $1 spent on Google Adwords, businesses earn an average revenue of $2

3. 40 percent of brands want to increase their PPC budget, indicating that this is an
effective and lucrative tool for marketers (SocialMediaToday)

4. Google Ads alone reaches a network of more than 2 million websites and
applications (Google).

5. PPC visitors are 50 percent more likely to make a purchase than organic visitors
(Unbounce).

6. PPC statistics are easier to measure than SEO statistics, making it easier for
marketers to track ROI and manage budgets (Unbounce)

Looking at various benefits of PPC advertising and the statistics generated from various reports
now I hope that you are convinced with why a business should use a per click advertising in their
promotional mix.
In this module we have just discussed the basics of pay-per-click advertising. From now
onwards, practical and very interesting things will start. Just join me in the next Module. Thank
you.