What is PPC, and How Does it Help?

Small business owners often find themselves swamped by information about growing their company. There’s no shortage of techniques they can use. The terms that describe those techniques can get confusing, though. That’s especially true when the acronyms start to look like alphabet soup. Let’s decode what you’ve come across while investigating advertising strategies. What is PPC, and how will it help you grow your market share and profits?

What is PPC?

PPC stands for Pay-per-click. What it refers to is a specific model of working out payments and revenue for online advertising.

Let’s say you buy an advertisement space on someone else’s website. Pay-per-click means that you pay according to the number of times that a viewer clicks on it.

PPC works best when the point of the ad is, in fact, to get people to “click through” to a website or a landing page. From there, the prospect can begin moving through the sales funnel. Analyzing that click-through rate helps businesses to know how cost-effective the ad is. They do this by comparison with the cost-per-mille (CPM) and cost per order. The latter measure refers to how much advertising spending it takes to get a prospect to buy. The former is the cost per thousand impressions or views regardless of clicks.

How PPC Helps Businesses Grow

PPC advertising coordinates the interests of both advertisers and publishers. What does that mean? Think of it this way: your business would prefer to pay as little as possible for each ad. The site your ad appears on wants to earn as much money as it can for giving you the exposure. You also want to get as much traffic and revenue as possible from your ad.

The solution lies in the fact that PPC uses two different payment models. One version lets advertisers opt for a flat rate that keeps cost per click stable. The other lets them use bid-based PPC. The bidding system is complex. It keeps costs down, though, by allowing many advertisers to compete for the same ad space. Each advertiser offers the greatest amount they want to spend per ad. Only the winning bidder shows up, though, when a user triggers the ad by visiting the page. On top of that, they only pay if that user clicks the ad.

Furthermore, this means that you only pay for ads that target the prospects you want. They visit pages while looking for specific keywords that you’re willing to pay to appear next to, and no others. That keeps you advertising costs far below what you would spend on traditional media ads. Your brand shows up in a more relevant context, to people who are more likely to buy than the general public.

The Value of Choosing REV CMO

Understanding PPC at the basic level is essential for online business success. Managing it is a bit more complicated, though. REV CMO provides PPC and other services so that you don’t have to. You also don’t have to hire a full-time Chief Marketing Officer to handle it before you’re ready to. Reach out to us to learn more about how we can help you grow your business to that level, and beyond.

What is PPC? It’s the gateway to your brand. Open it up to your customers!

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