Advertising Explained
So this first part is just gonna be pay-per-click advertising explained for beginners. So if you’re just getting started with pay-per-click advertising, maybe you’re, just trying to learn a little bit more about it for your own business.
Maybe you just got a job in pay-per-click advertising and you need to know more. We’re gonna continue to put out more and more videos about this, so you can keep learning, and so you’ll, be ready to go no matter what it is.
You’re trying to achieve so. First things. First, what is pay-per-click advertising so pay-per-click advertising is a form of advertising where, if you’re an advertiser, you pay for each click to your website or if you have a mobile app.
Something like that. So every single click that you’re driving. You’re, paying for each click. You don’t pay for impressions. You don’t pay for anything like that. You’re, paying for clicks. Specifically.
Now, Google ads is the most well-known pay-per-click advertising network, along with Bing ads. I consider Facebook to be a pay-per-click advertising network, even though technically it’s, not it’s really considered social advertising, and you’re generally paying for impressions on Facebook ads, but I still consider it to be a pay-per-click Advertising network, but ultimately what it is is advertisers are setting bids on keywords for clicks to their websites.
So you’re, either bidding on keywords or you’re bidding on audiences and you’re. If you’re an advertiser, you only pay when an advertisement is click, so we just recently did our Google Ads campaign and you can find it here.
Farmhouse coal search campaign. You can see it right there. You can find it on our channel. I would highly recommend checking out our pay-per-click advertising playlist through YouTube through our YouTube channel.
We’ll, put the link at the top in the video description, so you can find it easily, but coming back over to Google Ads here. This is an example of a pay-per-click advertising campaign through Google. It’s, specifically a search campaign where we’re targeting keywords related to farmhouse decor, and if you can see here there’s impressions at the top.
Here there’s; interactions for interactions. It’s, just gonna mean clicks in this case for this campaign and it’s. Gon na show we almost have 3,000 impressions and 16 clicks and if you look at saying the average cost is 61 cents, the total cost is nine dollars and 77 cents, so the average cost is our average cost per click.
So we’re only paying for these 16 clicks to our website. We didn’t pay at all for any of the impressions that didn ‘ T drive click so that’s. Why it’s called pay per click. Advertising is because you’re, paying for each click to your website.
So next is gonna be how does pay-per-click advertising work so generally it works. You set a bid for clicks to your website. You’re, either bidding on keywords or you’re bidding on audiences and you’re, setting a bid for how much you’re willing to pay for each click to your website.
Now bids can really vary. So for something like home decor, you might be bidding one to two dollars for something like real estate. You might start bidding up to $ 5 $ 6 $ 7. Depending on the market. You’re in some lawyers, some insurance companies.
They probably bid upwards of twenty thirty dollars per click. Some of the top bids go above fifty dollars for each click to your website. So how much you’re paying for click generally depends on how much revenue each clicked in can drive to your business.
So, for example, if you’re in a lawyer, you’re willing to pay $ 50 per click, because one client can equal thousands and thousands of dollars same with real estate agents. They’re generally gonna pay.
More now home to court, even though you’re selling high price items, sometimes you’re still only making a certain amount for each sale, so it ‘ S really depends on what keywords you’re targeting what audiences you’re targeting and because you’re entering an auction against other advertisers.
So, generally, the amount you’re willing to pay for each click depends on the other advertisers as well. How much they’re willing to pay for each click. If other advertisers are willing to pay much more than you for each click, then you ‘
Re gonna have trouble ever winning the auction. So the way it works is when you’re bidding for something let’s, say you and five other advertisers are bidding for a specific keyword. Every time someone typed something into Google, you’re gonna be entering an auction to try to get your advertisement out there.
So we open an example in Google here. So if someone types in accounting software, if you can see right here, the top four results are all advertisements, so they’re all based on accounting software. Each of these companies went to enter this auction and then also on the right-hand side.
These are also ads as well, so these are considered shopping ads, so these are search ads over here. These are considered. Google shopping ads. So if you click through any of these, it’s. Gon na be considered an advertisement click and you can see sponsored up in the top right-hand corner over here.
You can see ad next to each of the URLs, so this is the way it works. Is these advertisers are entering an auction because they’re bidding on the keyword, accounting software and they’re, each bidding a certain amount? And if we come back over here it’s.
Gon na say, the advertisements that show are based on a bid and an ads quality score or relevancy score. So basically, the way it’s gonna work. Google is gonna take into account how much the advertiser is bidding and they also use something called quality score, which is gonna look at their landing page.
It’s, gonna look at the average click-through rate historically for this advertiser, so it uses another score along with the bid to basically come up with what’s called an ad rank, and each ad will be ranked in the Google Search results based on their ad rank, so that’s.
Gon na be a combination of Quality Score and bid, so that’s. Basically, how the auction works. Is it’s gonna take into account the bid it’s gonna take into account the Quality Score and whatever ad has the top ad rank is gonna show at the top, whatever a second is gonna show? Second, and so on and so forth, that’s.
Basically, how pay-per-click advertising works? You’re bidding on a certain set of targeting and depending on advertisers. Other other competitors and different factors is gonna determine how much you’re, paying.
How often your ad shows up in the search results and how often your ad gets clicked so next gonna be. How can you get started with pay-per-click ads? So you can start by using pop popular pay-per-click advertising networks, so Google Ads Bing ads Facebook Ads.
So all these are very popular. You need a website or an app to promote, and then once you have your website and you’re ready to promote, you generally want to create different landing pages. So landing pages is where you’re, going to be sending traffic to and then once you’re kind of ready to go.
What you want to do is sign up with the pay-per-click networks. You enter your payment information and you can start by creating your first campaign. We have tutorials on our channel for how to get started with campaigns with all the top ad networks.
So if you want to get started, definitely check out our tutorials and it’s really easy to get started. I mean you just need to sign up. You need to enter your business information, you need to enter your website and then you just get started with creating your campaign and over time.
What you want to do is test and optimize, so it pay-per-click advertising worth it. So I think the key is testing and optimizing your campaigns. So I ‘ Ve worked with large companies. I’ve worked for large companies, they’ve, run pay-per-click advertising ads every single day.
I’ve, worked with companies that have million dollar yearly budgets and ultimately, they’re, trying to drive more leads and sales, and when you’re trying to rank high in Google, it can be very difficult, especially when we Come back to this example, so just for accounting software, so just to be ranked at the top here, you’re still below four different links.
There’s, all sorts of ads to the side. There’s. These links at the top, so it’s, becoming more and more difficult to get traffic to your website just through organic search. So that’s. Why a lot of companies are running pay-per-click ads, so it’s, definitely worth it.
I think it’s worth it for businesses of all sizes, but you do need to test. You do need more knowledge of pay-per-click advertising and the different pay-per-click ad networks, how they work and how to get the best results for your budget.
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