Pay-per-click (PPC): What You Need to Know?
Successful performance marketing strategy. What you need to know for PPC, proper ROAS, and other metrics.
16.10.2024
Pay-per-click (PPC): What You Need to Know?
PPC campaigns (Pay-per-click) are one of the most effective ways for businesses to quickly increase website traffic and generate conversions. But what should everyone know about PPC campaigns, and how can they help a company’s growth?
How Do PPC Campaigns Work?
PPC campaigns operate on a pay-per-click model, where advertisers pay for each click on their ad. Advertisers create ads that are shown to users based on selected keywords or demographic parameters. When a user clicks on the ad, the advertiser pays for that click. The goal is to attract relevant users to the website and achieve the highest possible conversion rate.
PPC ads appear in search engine results (Google Ads) or on social media platforms (Facebook Ads, LinkedIn). One of the main advantages of PPC campaigns is that businesses can target very specific groups of people, increasing the likelihood of campaign success and conversion completion.
How Can PPC Campaigns Help a Company’s Growth?
PPC campaigns can be a key tool for business growth, as they allow companies to immediately drive targeted visitors to their website. Additionally, PPC campaigns are easily measurable, so you can accurately track how much return each dollar invested brings.
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Quick results – Unlike SEO, where it can take months to see results, PPC campaigns provide immediate visibility. Once the campaign is launched, ads start showing, which can lead to an instant increase in website traffic.
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Measurable metrics – PPC campaigns enable businesses to track CTR (Click-Through Rate), CPA (Cost Per Acquisition), and ROAS (Return on Ad Spend). This data allows you to determine exactly how campaigns are performing and which strategies are most effective.
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Flexible budget – With PPC, you have full control over the budget. You can start with smaller amounts and gradually increase investment if the campaigns bring the desired results.
Action Plan: How Can You Use PPC Campaigns for Business Growth?
If you want to grow quickly and efficiently, PPC campaigns are an ideal tool. Here’s a practical example of how you can use PPC in your company:
Example with Numbers: Let’s say you invest 20,000 CZK in a PPC campaign. You set target keywords with a high relevance score, and the campaign generates 40 CZK per 1,000 impressions (CPM). This buys you 500,000 impressions.
If you have great creative content, you can maintain a CTR of 0.5%, meaning you’ll achieve approximately 2,500 website visits from these 500,000 impressions. Your website conversion rate is a solid 1%, resulting in 25 orders.
If the average value of one conversion is 1,500 CZK, your revenue from the campaign will be 37,500 CZK. This means your ROAS will be 188% (PNO 53%), which indicates decent results but also shows room for further campaign optimization.
How to Properly Optimize PPC Campaigns?
Continuous optimization is key to the success of PPC campaigns. You should ensure that you regularly monitor campaign performance and make adjustments based on the results. This includes changing targeting, adjusting ad copy, and testing different strategies to improve CTR and reduce CPA.
Key Areas for Optimization:
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A/B Testing: Test different versions of ads (text, images, CTA) and see which version delivers better results.
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Budget Adjustment: Track which keyword or ad set delivers the best results and allocate more resources there.
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Quality of Traffic: Monitor how users behave after clicking on the ad. If you see a high bounce rate, it may be necessary to adjust targeting or the ad itself.
Conclusion
PPC campaigns are one of the most effective tools for achieving immediate results. They allow for targeted outreach to relevant audiences, provide measurable results, and offer flexibility, which is key to business growth. At Delicate Crime, we’ll help you create and optimize PPC campaigns to maximize your ROAS and support your company’s growth.
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