Search Engine Marketing | Google Ads Key-terms - Indore Digital

Key Concepts to Understand About PPC

Search Engine Marketing (SEM)

The objective of all forms of digital advertising is to rank for a target keyword, which you can do in several ways. Search Engine Marketing (SEM) refers to any digital marketing (paid or unpaid) done on a search engine, like Google, Yahoo, or Bing. SEM is an umbrella term that encompasses both paid advertising and search engine optimization, that is, ranking organically for keywords. We are a leading advertisement agency in Indore. It’s important to note that not all PPC occurs on search engines — social media has PPC ads, too (think: Facebook Ads).

CPC or Cost Per Click

CPC is the price paid by the advertiser for each click on an ad. Here you can agree on a fixed price for each click or determine the price through an auction. In the case of the latter, the advertiser establishes a bid or maximum price that they are willing to pay for each click. The system compares the ad with similar ones based on their quality and the price they are willing to pay and shows the winning ad in the first place.

(Competitor’s Ad Rank / Your Quality Score) + 0.01 = Actual CPC.

Let’s go over the terms in this equation, so you know what you’re paying for:

Ad Rank

This value determines the position of an ad on a search engine results page. It’s equal to Maximum Bid x Quality Score

Quality Score

This is the score that search engines give to your ad based on your clickthrough rate (CTR) — measured against the average CTR of ads in that position — the relevance of your keywords, the quality of your landing page, and your past performance on the SERP.

Maximum Bid

This is the maximum you're willing to pay per click on your ad.

CPM

CPM, also known as cost per thousand, is the cost per one thousand impressions. It’s most commonly used for paid social and display ads. There are other types of cost-pers… like cost-per-engagement, cost-per-acquisition (CPA), but for the sake of preserving your mental space, we’re going to stick with clicks, a.k.a. CPC.

Campaign 

The first step in setting up your PPC ads is determining your ad campaign. You can think of your campaign as the key message or theme you want to get across with your advertisements.

Ad group

One size doesn’t fit all. That’s why you’ll create a series of ads within your campaign based on a set of highly related keywords. You can set a CPC for each ad group that you create.

Keywords

Each ad within your ad group will target a set of relevant keywords or key terms. These keywords tell search engines which terms or search queries you want your ad to be displayed alongside in SERPs. Once you determine which keywords perform best, you can set a micro CPC specifically for keywords within your ads.

Ad text

Your keywords should inform your ad text. Remember, your Quality Score is determined by how relevant your ad is; therefore, the text in your ad (and landing page, for that matter) should match the keyword terms you’re targeting.

Landing Page

A landing page is a critical piece of your paid advertising strategy. The landing page is where users will end up once they click your PPC ad. Whether it’s a dedicated webpage, your homepage, or somewhere else, make sure to follow landing page best practices to maximize conversions.

Conversion

Conversion is probably the most important metric in a PPC campaign because it involves measuring the performance of your ad in economic terms. The term "conversion" refers to each of the purchases made by a user after clicking on an ad. The conversion ratio is the percentage of users converted into customers out of all the users that clicked on the ad.

Conversion ratio = number of conversions ÷ web visits

Frequency

In this case, frequency means the number of times each ad is shown to a specific user during a given time period. To calculate frequency, divide the number of impressions by the number of unique users.

Frequency = number of impressions ÷ number of unique users

 Conclusion 

 

 Pay-per-click advertising strategy surely boosts your sales and business by helping you with targeting and connecting with target audiences. By embedding the above-mentioned 5 five components in your PPC marketing strategy you can avail of the full benefits of this fantastic marketing tool. If you're looking for Digital Marketing Agency in Indore, Indore Digital will shape your marketing campaigns profitably.