To achieve optimal results, all elements of a PPC campaign must be in good working order, operating together synergistically. Like an automobile engine, all parts must be finely tuned together to ensure that the driver gets from point A to point B, quickly and efficiently. If any one part of the engine is defective or inefficient, the engine may run poorly or not at all.
Likewise, if any one part of a PPC campaign is deficient or ineffective, it can drag down the performance of the whole campaign to unacceptable levels.
1.1. PPC Campaign Uses
Although most advertisers will use PPC advertising to garner sales, submitted leads, or donations, others may benefit in ways that are more indirect.
For example, the goal of some ad campaigns is not necessarily to elicit a direct response by the person viewing the ad. Rather, the goal is simply to achieve branding—to cause the person viewing the ad to remember the name of a company or the features of a product, which will result in a visit to a bricks-and-mortar storefront. Branding is also an effective way to generate word-of-mouth marketing, whereby people viewing the ad tell others about their impression or experience.
1.2. The Science of PPC
The next chapter covers the mechanics of PPC, but for now it's important to understand that successful direct-response advertising of any kind requires using methods and techniques that are closer to science than to art. Successful PPC advertisers constantly use calculators, spreadsheets, and software tools to plan, construct, measure, and optimize campaigns. If you're not comfortable with the mathematical side of PPC advertising, you may need to find an assistant or colleague who can become proficient in that aspect of the job.
For example, determining the optimal price to pay for each click requires calculations based on the price you're willing to pay for a conversion. Usually this is a simple one-time exercise, but for companies with multiple products or a range of desired conversion actions, the task can get quite complicated.
1.3. The Art of PPC
Although PPC advertisers have a big toolkit of scientific tools and techniques to employ, successful PPC advertising requires a mastery of skills that are mainly artistic in nature. Chief among these are the ability to write well and a sense of professional graphic design.
Writing effective, persuasive ads is crucial to the success of a PPC campaign. Often the failure of a campaign can be attributed to poor ad copywriting. Ads may be displayed frequently but fail to elicit a significant proportion of clicks, as evidenced by one of the most important metrics of campaign success: click-through rate (usually abbreviated as CTR).
1.4. The State of the PPC Industry
Since the inception of PPC advertising in 1998, advertisers have paid Google, Yahoo!, and Microsoft billions of dollars for targeted clicks. Despite the effects of a global recession, almost half of advertisers polled by MarketingSherpa said they intended to increase their PPC spending in 2009. Conversion rates for PPC campaigns have also been climbing steadily—almost half of the respondents in the same study reported that conversion rates have increased over the previous year.
After several experimental efforts in the mid-to-late 1990s, PPC advertising was popularized by the startup company GoTo which was developed at Bill Gross's Idealab in 1998. GoTo had the PPC advertising field to itself until it was renamed Overture in 2001, and expanded as a back-end ad service platform for search engines such as Yahoo! and MSN.
Likewise, if any one part of a PPC campaign is deficient or ineffective, it can drag down the performance of the whole campaign to unacceptable levels.
1.1. PPC Campaign Uses
Although most advertisers will use PPC advertising to garner sales, submitted leads, or donations, others may benefit in ways that are more indirect.
For example, the goal of some ad campaigns is not necessarily to elicit a direct response by the person viewing the ad. Rather, the goal is simply to achieve branding—to cause the person viewing the ad to remember the name of a company or the features of a product, which will result in a visit to a bricks-and-mortar storefront. Branding is also an effective way to generate word-of-mouth marketing, whereby people viewing the ad tell others about their impression or experience.
1.2. The Science of PPC
The next chapter covers the mechanics of PPC, but for now it's important to understand that successful direct-response advertising of any kind requires using methods and techniques that are closer to science than to art. Successful PPC advertisers constantly use calculators, spreadsheets, and software tools to plan, construct, measure, and optimize campaigns. If you're not comfortable with the mathematical side of PPC advertising, you may need to find an assistant or colleague who can become proficient in that aspect of the job.
For example, determining the optimal price to pay for each click requires calculations based on the price you're willing to pay for a conversion. Usually this is a simple one-time exercise, but for companies with multiple products or a range of desired conversion actions, the task can get quite complicated.
1.3. The Art of PPC
Although PPC advertisers have a big toolkit of scientific tools and techniques to employ, successful PPC advertising requires a mastery of skills that are mainly artistic in nature. Chief among these are the ability to write well and a sense of professional graphic design.
Writing effective, persuasive ads is crucial to the success of a PPC campaign. Often the failure of a campaign can be attributed to poor ad copywriting. Ads may be displayed frequently but fail to elicit a significant proportion of clicks, as evidenced by one of the most important metrics of campaign success: click-through rate (usually abbreviated as CTR).
1.4. The State of the PPC Industry
Since the inception of PPC advertising in 1998, advertisers have paid Google, Yahoo!, and Microsoft billions of dollars for targeted clicks. Despite the effects of a global recession, almost half of advertisers polled by MarketingSherpa said they intended to increase their PPC spending in 2009. Conversion rates for PPC campaigns have also been climbing steadily—almost half of the respondents in the same study reported that conversion rates have increased over the previous year.
After several experimental efforts in the mid-to-late 1990s, PPC advertising was popularized by the startup company GoTo which was developed at Bill Gross's Idealab in 1998. GoTo had the PPC advertising field to itself until it was renamed Overture in 2001, and expanded as a back-end ad service platform for search engines such as Yahoo! and MSN.
