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PPC, or pay-per-click, advertising is a form of online advertising in which advertisers pay each time a user clicks on their ads. This is the most widespread advertising format among online stores because it allows you to design campaigns aimed at a specific audience and measure the results. PPC ads aim to drive traffic to a certain website or generate a concrete action in users: creating leads, increasing sales, etc. To assess the suitability of launching an online ad campaign, eCommerce businesses must first perform an analysis of the digital presence of the brand to identify what’s missing or failing and weigh the cost-benefit ratio of advertising for the company.
For your campaign to be a success, you must also consider the following aspects:
The price of PPC ads
As we said, with PPC campaigns, businesses only pay when users click on their ads. Each click can have a flat rate or a price determined by bids. In the second case, the advertiser establishes a maximum price or bid that they’re willing to pay for each click. The system then compares their ad with other similar ads, based on the quality and price, and displays the winning ad first.
The importance of the landing page
The landing page is the place that users land after clicking on your ad. To generate a higher conversion rate, we recommend designing a specific landing page for the ad. This page should be highly optimised, both online as well as on mobile devices, since the speed will determine how long the consumers will remain on your website.
The advantages of PPC advertising for the eCommerce business
A properly configured PPC ad campaign can offer significant benefits to eCommerce businesses. Among these, you’ll find:
- a direct link between cost and visits
- audience segmentation
- information about the conversion rate
- improved positioning and visibility
A direct link between cost and visits
With this format, companies only pay for the visits that they receive and know exactly where their budget is going. In other advertising systems, the advertiser can have no guarantee that results are being achieved. At the same time, this system allows you to establish a maximum daily budget and select where and when your ad will be displayed.
Audience segmentation
There are many options for segmentation available to eCommerce businesses so that they reach only the public that interests them most. You can divide your target audience based on age, gender, location, interests, behaviour, etc. This will ensure that you’re only paying for those clicks that are more likely to end in purchase.
Information about the conversion rate
PPC platforms provide the company with comprehensive data about the ad’s performance, including the conversion rate and the number of purchases made by users that visited your landing page. This information facilitates the optimisation of ads in real time.
Improved positioning and visibility
Using PPC campaigns, you can display your ads on the sites that are most visited by users and increase the visibility of your products and services among potential customers. Online search engines have the highest success rate with these campaigns, especially Google, and social networks. Because of this, this ad implementation also encourages a better positioning of the brand in these environments.
Each ad will be defined by a series of keywords that correspond to the intention behind the searches made by the eCommerce business’s target audience. Refining these keywords as much as possible will also increase the guaranteed success of the ad. To do this, you can analyse the keywords and descriptions used by your competition through automated product monitoring software. This is one way of further limiting the description of the advertisement to achieve the best results.
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