Paid Search Advertising Tutorial

1.2 Introduction

Hello. In this video, we're going to introduce PPC. Define what it is and why it's useful for companies to use PPC as part of their marketing mix.

1.3 What is PPC?

Now PPC is often called pay per click, and it's the process of buying paid media on search results such as Google or Bing to bring targeted traffic to your website in order to gain new customers. So for many companies, PPC is the primary marketing channel for new customer acquisition. If you've ever done a search on Google, Yahoo, or Bing before, you might see ads at the top, and sometimes the side or bottom of the page, these are PPC ads. These ads are often the first item a user sees, after conducting a search and they can bring a lot of traffic to your company. In fact, Google, Yahoo and Bing, the three primary search engines along with a few others, have over 90 billion search queries they process every single month. So you take 90 billion queries across these engines, you can send a lot of traffic to your website. Now PPC extends beyond just search engines to other content providers, which are commonly newspaper sites, help sites or even social media sites and they also include Blogger, YouTube, and Gmail. So with displays networks that are controlled by PPC you have access to millions of more websites you can advertise in from just a single interface. This makes it much easier to buy banner-type ads across the entire web, from just a single console. In fact, just Google's network, this doesn't include Bing, consists of more than 2 million sites and 1 trillion monthly impressions. So between search and display we can reach almost every single internet user with targeted ads. It's roughly 90% of global users and 94% of United States users see paid search ads. Now there's a lot more targeting options available on PPC than we could even cover in a brief few minutes. But paid search isn't always dependent on reaching a new prospect. You can also reach prior visitors from your own website with PPC as well. So, for instance, one of the many targeting options is known as remarketing. With the remarketing, you can show ads to a user based upon actions they did on your website. So, if someone comes to your website, they add a product to your shopping car and they abandon a shopping cart and leave your site. You can then show an offer back to the user who abandoned your website to bring them back and finish the transaction. So PPC, it's generally known for its ability to reach users who are actively searching for your company, but once you start mastering the systems, you can reach users with very specific criteria, with targeted based ads.

1.4 How PPC Works

Now it's called PPC, or Pay Per Click, for a reason, it's an Auction Based System. So you will set a bid for what you're willing to pay, for any one user to come to your site, so because of this, it's also important to have an understanding of analytics. So you can measure the value of what a click is to you, in order to set your bids of what you're willing to pay for these new customers to come to your sites. Now with pay per click because we're paying, we get a lot of targeting capabilities to make sure we're delivering the proper ads to users. You have geographic constraints you can use. You can target multiple countries, a single country, a state, an individual city, or even radius' around specific zip codes, you can change your ads or stop advertising based on the time of day or even hours within a day. You can reach users on desktop sites as well as mobile devices, and then you can target individual sites across the 2 million sites that participate in showing ads from paid search engines. So it doesn't matter if you're a local business, an ecommerce business or just want to bring more traffic to your site, to introduce your products and services to a user, search engines can help. If someone does a search for educational toys, commonly ecommerce query, you'll see ads at the top of the page, the first thing a user sees. If you do a search for a service such as car insurance or home insurance, the first thing a user sees are paid based ads that are based upon those search queries brings targeted traffic to your sites. Now Bing has ads as well, so if you could advertise a term like Chicago hotels geographic based queries and only rates users who are looking for something in a specific geography. You might be a small business and only want to show people searching for accounting help in a specific region as well. So one of the real advantages of search marketing, is that a user is actively looking for a business. So this is not like cold calling or a TV ad where you have to interrupt someone and hope you find someone who wants to listen to your message. With search advertising these are akin to warm leads, the user has already told the search engine exactly what they're looking for via the keyword they put into the engine. So now by putting your ad front and center of someone who's actively looking for a company like yours, you can reach the user when they are actively trying to find someone just like you.

1.5 The PPC Cycle

Now because we are paying-per-click, there's this whole cycle we really should understand of how everything fits together. So first off you're going to choose keywords. These are keywords that when someone inputs into a search engine, you want to show your ad based upon a user doing that search. So then you'll next, write ads that fit to those keywords, that deliver a targeted message based upon each specific keyword that a user may put into an engine. Next, you'll want to set bids based upon what you're willing to pay to get a user to your site. So now what happens is someone does a search and your ad's displayed. If the user clicks on your ad and goes to your site, that's when you pay. Hence, why it's called PPC or pay-per-click, because you only pay when someone clicks on an ad to go to your site. You don't have to just pay for impressions, you actually pay for traffic. Then you can measure on your site what that visitor was worth and then based upon what that visitor is worth you can reset your bids and change them so that you make sure you're getting the returns based upon your marketing budgets.

1.6 PPC for Small Companies

So for small companies, PPC is usually managed either by an outside vendor such as an agency, or by a single person inside of the company. Now often this person's not full time and paid search. They often manage other aspects of the business or they might be the business owner. So because this person is wearing so many hats, they really need to focus on speed and efficiency and making quick decisions. Streamlined accounts set up in creation to get the ads running. because they're not going to have all the time to really take advantage of every single trend, which a larger company can do. Now the advantage though, with small companies, is they can be really flexible in how they approach PPC as part of their marketing mix. Without many people to report to, the person can try out a lot things very quickly, without having to consult with multiple teams. Now because with PPC you can target to just a very small area, which is very common for small businesses to be geographic focused. You can still compete with large enterprise companies very well because you're focused on users and a specific geography. Where they may be focused on a lot of various aspects and you can drill down more specific with them. It's also common for small companies to focus on what's known as long tail keywords. Keywords that can be very specific but they have low search volume to them. Often these companies don't focus on high keyword volumes because the company can't handle the number of leads that's possible from highly competitive and highly searched terms.

1.7 PPC for Mid-Sized Companies

Now for mid-sized companies, they may also use an agency to coordinate some of their marketing efforts and do the rest of it in-house. They also might do it all in-house. Now it's possible that a single person is managing all the digital marketing efforts in a mid-sized company, but in most cases, there are a few people working towards a common goal. Often one person's in charge of the website. Another person might be in charge of SCO. A third might be in charge of paid search. It's also common to see this same person in charge of SCO and PPC in mid-size companies. And then when you look at social media marketing or email marketing, these often fall to the same SEO and PPC people. And usually don't have dedicated people working on it. Now it's common in a mid sized company to have some of these efforts entirely in-house and some partially outsourced where you may have another vendor who manages your website. And then your traffic drivers paid search and organic traffic managed in-house. So the advantage of having multiple people working on various digital efforts is that someone can really specialize in an area, such as just paid search, or just web design. And then other aspects of the business can leverage these people as necessary. So for instance, if you have an in-house designer and you want to run an image ad across various paid search networks, you can just walk over to the image designers desk and ask him for what you want. So, with teams where someone's often specialized in an area but needs some help from others, which is pretty common, it's best if each member of the team has a basic understanding of each of the major disciplines. Analytics, conversion optimization, and paid search or SCO a traffic driver. So for instance, if the PPC team is creating new ads and they want to send traffic to a specific page on the site, and they want to make a page for that offer. They could either walk over to a designer's desk and ask them to create something, but then you don't know what you're going to get, and the designer might be specialized in conversion optimization. But if instead the paid search team has a basic understanding of conversion optimization, they can do a basic mock up of the page of how they envision the offer working, then work the designer to bring this page to life. So having a basic understanding of other disciplines is really useful in paid search.

1.8 PPC for Enterprise Companies

then we'll look at enterprise companies. It's common to see again a combination of some in-house and out-sourced items. But, the real advantage of enterprise companies is resources. They often have dedicated teams to page search. Another team that works on search engine optimization. Another person's an analytics specialist. Maybe someones an e-mail specialist and so forth. Now the disadvantage of all these teams is you often get stuck in a lot of meetings trying to coordinate everything. So with enterprise companies, it's really important to have good communication to leverage the resources appropriately. It's also common in larger companies to see things needing to be approved by a legal department before new ads or content can be pushed live. So in-house coordination between teams is really essential for enterprise companies. Now another advantage of large companies is that they have the sales teams and marketing budgets to to compete on really highly searched terms, or expensive terms. Since they're often spending a lot of money on paid search, they must have employees dedicated to each facet of the marketing channels. To ensure that the results are always being monitored and can be changed as necessary.

1.9 PPC Advantage

So, one of the real advantages of paid search is a lot of inventory sources from one place. If you advertise with just Bing and Google, so not a lot of sources, you can be on all of Google's search results, all of Bing's search results, Google Maps, Bing Maps, Gmail, YouTube, and of course a couple million sites that partner with these to show some of their ads. So since Google alone, reaches 90% of global visitors, when you combine this with Bing's Market Share, you can reach almost every Internet user with paid search. So if you don't use paid search you're going to miss out on a lot of prospects. It's also important we look at how marketing funnels work online. But everyone has this basic understanding of the various channels. So it starts with driving traffic to your site. This might be SEO, PPC, social media, email, etc. Then someone gets to your website. At this point in time you want to focus on conversion rate optimization. Making sure people who get to your site become customers. Then once they become customers you can use your analytics and look at your customer behavior and your website behavior to refine how you're driving traffic. So PPC is just one piece of this marketing puzzle but it is a piece that can make all the other disciplines better because of its testing capabilities. PPC can really give you insights to use in other channels. So with organic optimization, or SEO. It's common to take three months, six months, or nine months, to rank for highly competitive keywords. If you pick the wrong keywords, you'll have wasted a lot of effort and ranking. So a paid search, you can quickly get feedback into exactly what keywords converts, so their organic teams can make sure they're working on the correct keywords. If you're doing email, you can look at quickly how different ads perform, and use those as subject lines or part of the email message. If you want to design a new website, you want to make sure it converts as well as your old one, so you can easily send some traffic via paid search to this new site to ensure it's going to convert. So whenever you want to test out new messages, there's no easier channel to test with than paid search. And finally, one of the real advantages of PPC is that you can determine where in the buying funnel you want to reach users and tailor your message to each step. So when we think of the top of the funnel, awareness and interest, the display network is great for this because you're advertising to the people who are reading newspapers, who might not know about your product yet. And then when we get to the consideration phase, a learn phase and a shop phase, this is where traditional search marketing, putting keywords in search results, brings prospects to your site who are thinking about your products. The buy phase is great to use with some remarketing efforts, and also advertising on search results. And even when we look at post buy, we look at retention rates and lifetime visitor values, remarketing of our display networks is great.

1.10 Thank You

So with PPC, you really can ensure that these 1 trillion display monthly impressions, and 90 billion monthly search queries. You can pare them down based upon all your targeting options that are capable within paid search and where you want to reach a user in the buying funnel. So you can make sure you really are showing the correct message to a targeted user so you'll bring the hottest prospects to your site and turn them into new customers.

  • Disclaimer
  • PMP, PMI, PMBOK, CAPM, PgMP, PfMP, ACP, PBA, RMP, SP, and OPM3 are registered marks of the Project Management Institute, Inc.

Request more information

For individuals
For business
Phone Number*
Your Message (Optional)
We are looking into your query.
Our consultants will get in touch with you soon.

A Simplilearn representative will get back to you in one business day.

First Name*
Last Name*
Work Email*
Phone Number*
Job Title*