Pay Per Click (PPC) advertising was first introduced in 1998 as a way for advertisers to literally “pay per click” when an advertisement is clicked by a potential customer. The mechanism was an instant success and was adopted by Microsoft, Yahoo and later Google - replacing the standard advertising model of “pay per impression” where advertisers pay for the volume of advertisements shown.
PPC is now the standard mechanism used by search engines (competing via price auction for top positions on search engine results pages); shopping portals (syndicating data feeds that contain product listings to shopping portals); and social media websites (placing advertisements that appear on Facebook and LinkedIn profile pages).
There are 3 major search engines worldwide: Google with 80% market share; and Yahoo! & Bing each with 10% market share. Google has the leading PPC system called Google AdWords, while Yahoo! & Bing use Bing Ads.
The 3 major search engines own the largest portals; Shopzilla is the largest of the 2nd tier CPC portals; while there are hundreds of smaller portals too.
The 3 major search engines also have display networks: Google AdSense is by far the largest; followed by DoubleClick which is also owned by Google; while social networks including Facebook and LinkedIn are increasing in size.
Although each has developed proprietary PPC systems they all employ a similar pricing mechanism and have adopted the same concepts as Google. This allows you to simply optimise for Google, then replicate for the others."
The most important aspect of PPC is to understand the auction mechanism and know how to take advantage of it. Positions and profit are determined by how much you bid [$] and Quality Score [QS]. Google rewards the advertisers that engage with customers the most efficiently and effectively. Learning how to improve Quality Score reduces CPC and increases traffic, orders and profit.
Position = Bid x Quality Score [QS]
Search QS = CTR + keyword relevancy + text ad relevancy + adgroup relevancy + landing page relevancy
Portal QS = CTR + keyword relevancy + quantity of date provided + accuracy of data provided
e.g. Two advertisers: one business is called ‘BMW Wipers Inc’ [A] and the other is ‘BMW Sales Inc’ [B].
- [A] sells BMW windscreen wipers; [B] sells new BMW motor vehicles
- [A] makes $10 profit each sale; [B] makes $1,000 profit each sale
- [A] targets “bmw windscreen wipers”; [B] targets all “bmw” keywords
- [A] bids $0.10 per click; [B] bids $1.00 per click
A potential customer types “bmw windscreen wipers” into Google and both ads are displayed. Google expects to make more money from [B] because the bid is 10 times greater, so starting positions are: [B] 1st & [A] 2nd
However, because [A] is offering customers exactly what they are looking for in the text ad, more people click on [A] than [B] despite it being in 2nd position. After sufficient data has been accumulated Google’s algorithm then calculates the Return On Investment [ROI] for both ads.
Because Google makes more from BMW Wipers Inc, the positions are then flipped: [A] 1st & [B] 2nd. Now BMW Windscreen Wipers Inc is in 1st position with a much lower bid!
Better ads generate MORE orders & MORE customers for LESS cost!
Our range of PPC services cater for most budgets and circumstances however should you wish to discuss your requirements with us please do not hesitate to contact your nearest office:
PPC Sunshine Coast
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Your Google AdWords account must adopt a logical taxonomic scheme for the PPC campaign to succeed.
Google employs an algorithm called ‘Quality Score’ to place the best structured advertisers at the top of search result pages at a lower Cost Per Click (CPC). Therefore, success or failure is often pre-determined by the quality of the foundations established at this stage of the process.
The Creative Collective will select the correct account settings and establish the best account structure for your business. You gain more than just an account that is easy to manage and analyse: you’ll have a solid foundation that will allow you to build a successful PPC campaign paying the lowest Cost Per Click (CPC) possible.
Contact one of our offices today to discuss setting up a Google AdWords account:
Google AdWords Sunshine Coast
Google AdWords Brisbane
Google AdWords Gold Coast
Google AdWords Newcastle
Google AdWords Sydney
Once your account is up and running the real work begins!
When we started ten years ago PPC campaign management mostly involved “bid management” - adjusting the Cost Per Click (CPC) for a given position for each keyword.
Today PPC campaign management is more about improving the advertisements customers read to reduce CPC and continuously adding / removing new phrases to grow the campaign.
The Creative Collective has learned what works for different businesses. In some cases a local approach works best, targeting the right markets and customising advertisements for a specific audience.
For others it is a case of increasing market share as much as possible for the business to dominate search engine results. For every business we employ three key concepts to get the best result.
PPC Management Sunshine Coast
PPC Management Brisbane
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1. We adopt a perfectionist approach: we write ads that are beautiful, without spelling errors or poor grammar. Your text ads are the first thing customers see, ergo they give your customers their first impression of your business.
2. We adopt a logical approach: including the primary keyword in either the title or description and use the Display URL to repeat the keyword - to let your customers know that you have exactly what they are looking for.
3. We adopt a formulaic approach: testing which “ingredients” work for different types of adgroups so that you can learn what messages appeal to your customers.
Before committing to anything you may like The Creative Collective to assess the market and/or your existing accounts.
The Creative Collective has prepared hundreds of PPC Assessment documents over the years which provides you with insight into:
- Keyword research: search demand, estimated Cost Per Click (CPC), expected sales & ROI
- Competitor analysis: positions, estimated traffic, spend & sales volume
- Account review: account structure, campaign settings, keyword performance
- Recommendations: increasing market share, traffic, sales & ROI
PPC Assessment Sunshine Coast
PPC Assessment Brisbane
PPC Assessment Gold Coast
PPC Assessment Newcastle
PPC Assessment Sydney