Pay Per Click (PPC) Management

What is it and what does it consist of?

The “Pay per Click" (PPC) is a widespread model of digital advertising, through which advertisers pay to the websites and portals in which they advertise, only when someone clicks on their advertisement. In the case of search engines (Google, Yahoo, Bing …) advertisers usually bid for those keywords that are relevant to their potential consumers. Content websites, on the other hand, usually charge a fixed price per click instead of using a bidding system. The so-called “Cost per Click" (CPC), therefore, is the amount paid by an advertiser to the Seekers or other websites on the Internet for a single click on your ad. The click, therefore, directs the visitor directly to the advertiser’s website.

Pay-per-click advertising systems encompass websites where users are identified as potential buyers of the products or services of a given company. This “identification" is possible through the search criteria they use, or by the type of content they are browsing.

PPC providers include Google AdWords, Yahoo! Search Marketing and Microsoft adCenter, and all three operate under a bid-based model. In addition, all three offer both pay-per-click ads alongside their organic search results-usually called “Sponsored Links" or “Sponsored Ads," which usually appear adjacent to or on top of the Search Engine Pages results- or as pay-per-click ads on the content websites – in this case, in the places that your webmasters have deemed most convenient

There are two main models to determine the cost per click: the flat rate and the bid based advertisers. However, in both cases advertisers must consider the potential value of a click from a certain source (or, preferably, measure the absolute value). Thus, the value of a click is related to the type of user that the advertiser expects to receive on their website, and what that user can offer during that visit – income, in general – both in the short and long term.

As with other forms of advertising, in Pay Per Click segmentation is an aspect of vital importance. Also, the factors that often influence PPC campaigns include: the interests of the target audience (often defined by a search term they have entered in a Search Engine or the content of the page they are browsing for), their intentions (for example, buy or not), their locations (geolocation), and even the day and time they are browsing.

Flat Rate PPC Model
In the flat rate model, the advertiser and the owner of the website where the ad will be located agree a fixed amount to pay for each click. Many times the website already has a price list to stipulate the CPC, which will depend on the area of ​​the website where the ad is located -with a greater or lesser degree of visibility for users- and the content of the pages on which it is posted. such announcements are found -with a greater or lesser degree of relevance for users-. In other words, the more visibility and more interesting content for users, the higher the price per ad click. There are cases in which advertisers can negotiate lower rates, especially when they express their intention to advertise for a prolonged period of time or have a large budget. The PPC model of Flat Rate is especially common among comparison websites, which usually have their rates published. The costs in this case are usually quite affordable, allowing advertisers to pay more for greater visibility.

The websites and portals that adopt the PPC flat rate model are usually perfectly divided and classified into categories of products or services, which facilitates a high degree of segmentation for advertisers. In many cases, the entire main content of these websites are paid advertisements.

PPC model based on the bid
On the contrary, in the bid-based model, advertisers accept the conditions of a contract that allows them to compete with each other in a private auction organized by a web support or, more commonly, an advertising network. Each advertiser reports the maximum amount they are willing to pay for the click of an ad (often based on a keyword), using the online tools that the media makes available to them.

Thereafter, the auction is done automatically every time a user activates the ads. If these ads are part of a page of results of a Search Engine (SERP), the auction starts automatically if a user performs the search of any keyword that advertisers are bidding for. All bids for a keyword related to the user’s geographic location, as well as the day and time of the search (among other factors) are then compared and finally the advertiser who has won the auction is determined.

In those situations where there are multiple sites for ads, a common occurrence in the SERPs, there may be multiple winners whose position on the page will be directly determined by the amount that each of them has decided to bid. Thus, the ad with the highest bid usually appears in first position, although other factors such as the quality of the ad and its relevance to users may also influence it.

In addition to the announcements in the SERPs, the main advertising networks allow contextual advertisements in the websites of third parties with which they have been associated. These websites, commonly referred to as Publishers, must be previously registered in the advertising networks in order to host the advertisements and, in return, receive a part of the income they generate. This group of Editors is known as the “Content Network", since the advertisements they contain are related to keywords based on the context of the page they are on. In general, ads on content networks – web pages, newsletters, emails … – have a much lower percentage of clicks (CTR) and conversion rate (CR) than ads that appear in SERPs: consequently, They are usually less valued. Again, Advertisers pay for each click, calculating the total amount based on the bid they have set for each keyword. It is a common practice among advertising networks to charge the winning advertiser a little more (one cent, for example) than the next highest bidder or the total amount of the bid, whichever is less.

The reason for the above is to prevent advertisers from constantly adjusting their bids by very small amounts, to see if they can still win the auction by paying a little less per click each time. To optimize and scale the results, automated auction management systems can be implemented which, although they can be used directly by advertisers, are more commonly used by advertising agencies that offer the management of PPC bids as one of their services. These tools can allow bids to be managed at scale, with thousands or even millions of PPC auctions controlled by a highly automated system. These systems establish each auction, usually in terms of the objectives to be achieved: maximize sales or traffic, for example. The aforementioned systems are normally linked to the advertiser’s website and record the results of each click, to allow then to establish bids. The effectiveness of these systems is directly related to the quality and quantity of the data they manage. Thus, ads with little traffic can lead to a problem of data scarcity that makes many auction management tools useless in the worst case, or simply ineffective in the best of them.

In short, the process is quite simple: a set of keywords related to your product or service are entered into the system and you pay for the clicks that users make on your ads: well after performing a search based on your keywords, or while browsing the content of other websites whose theme is related to your business. However, maximizing the profitability of your campaigns requires an in-depth knowledge of the nuances of pay-per-click systems, as well as experience. With it you can save huge amounts of time and money.

Which are the requirements?
To start, you will need to register an account with at least one PPC provider (the most used is Google AdWords) although, if you prefer, we can take care of all the management of your configuration. You will also need to have the Google Analytics code installed on your website: again, if you want we can take care of it and verify with Google that the code works correctly. Next, we will determine with you the most appropriate keywords for your website, as well as the landing pages and the actions that we want users to perform on your website (fill in a form or purchase, for example). Finally, we will start the measurement of the relevant parameters: the Cost for Conversion (CC) if you want to get records or the Return of Investment (ROI) if what you want is to sell your products or services (a fundamental metric in the case of Electronic Commerce platforms). Thanks to all this we can thoroughly review your website and propose recommendations such as:

The restructuring of navigation.
Various technical changes or related to programming.
Modifications in the contents directed to the visitors of your web.
Creation of new and optimized content.
These recommendations can be implemented by your internal team (designers, editors, programmers …) or, if you prefer, our team can take care of them all.

How much does the PPC cost?
Since you are the owner of your AdWords account, the cost of the tasks we perform in it is an investment for you: you will continue to own your account in AdWords regardless of whether or not you decide to continue working on your project. The creation of advertising campaigns to drive users to your website and meet the desired objectives (records, sales …) is a very powerful tool, although of course it will always be influenced by the fact that a good product or service is offered, and that your business model is in line with all of the above.

Pay per click marketing is an ongoing process, so the ideal is to work by sessions. Each session costs € 600 (VAT not included) and the standard minimum number of sessions is 3. Also, depending on the size and needs of your project, you can choose and combine the number of sessions you choose, in the time you consider most convenient . Below you can see some examples:

A small company may prefer to start with 1 or 2 sessions per quarter or even per year.
An SME could choose between 1 and 5 sessions per month.
A company with a large structure can choose several sessions per month
Depending on the amount and frequency of the sessions you choose, you can set a notice period in case you decide to cancel the agreement, as well as a discount on the total.

Your involvement in the process
Undoubtedly, the more time you can devote your marketing team to PPC campaigns, the more you’ll get from our sessions. However, it is worth mentioning that we work with projects of all kinds: from companies that do not have a proper marketing team, to large corporate companies with huge marketing departments.

Measuring the results
Ad networks provide a large amount of data to enable analysis, measure the results of and optimize them gradually.

What results can you get?
We are confident that we can improve the results of your pay per click campaigns. So sure we are that, if you decide to hire us, this is what will happen … or we will refund your money. So clear. The number of sessions, the budget and the costs per click will depend directly on the state of the pages of your website, and the campaigns and actions that your competition performs. Do not hesitate to consult us about your project: we will offer you an estimate based on your case and needs.