My website is new, and it will take some time for organic (SEO) traffic to build up. Is there a way to get more online traffic right away? The answer is yes. If you are not getting the visitors you need through SEO or traditional marketing methods, PPC campaigns can put your business in front of ready to buy customers instantly.

What are PPC and CPC?

Contextual wise, what is the difference between PPC and CPC?

  • PPC, or Pay-Per-Click, is one of the most popular methods of SEM (Search Engine Marketing) advertising. It works by advertisers paying a certain amount of money every time a visitor clicks on their advertisement. These paid advertisements are generated through platforms like Google AdWords and Bing Ads.
  • CPC, or Cost-Per-Click, indicates the actual dollar amount that the advertiser needs to spend for a single click on the advertisement per keyword.

The PPC Campaign Calculations

In order to determine the success of a PPC campaign, it is important to understand the following three components of online marketing calculations:

Calculation #1: Click-Through-Rate

The CTR or Click-Through-Rate metric helps determine whether an ad can generate a good engagement. The higher the CTR, the better your ad performance will be.

Click-Through-Rate is calculated by the number of clicks divided by the number of impressions. Multiply the value by 100 and you will get a click through rate percentage. A good click through rate percentage for an ad is normally around 1%, however, depending on your industry the CTR may go higher or lower.

Calculation #1: Click-Through-Rate

Calculation #2: Conversion Rate

Conversion rate is the metric you need to closely monitor because it determines the advertisement’s profitability. Conversion in a PPC campaign is the number of leads or sales gained through clicks of advertisement. Conversion rate is calculated by the number of conversions divided by the number of clicks. Multiply this value by 100 and you will get a conversion rate percentage. Depending on your business, average conversion rate varies by industry.

Calculation #2: Conversion Rate

Calculation #3: Cost Per Conversion

Cost per conversion determines the cost per acquisition for a PPC campaign. It tells you if the marketing dollar spent on a campaign is worth the price base on your business needs.

Cost per conversion is calculated by the total campaign cost divide by the total conversions. The value is a dollar amount which represents how much an ad campaign cost to make conversion happen.

Calculation #3: Cost Per Conversion

3 Reasons Why PPC Marketing can Fast-Track Your Business Online

With proper research and setup, PPC campaigns can achieve immediate results within a planned budget. Here is what you can expect:

1. Instant Traffic

Unlike SEO marketing, which takes some time to see results, PPC can deliver instant traffic by displaying your ads on top positions of search queries within Google or Bing. Include high search volume keywords in ad message. It helps you gain visibility and improves conversion opportunities.

2. Controlled Cost

You decide how much you want to pay for each keyword click, so the cost is completely transparent. However, it does not mean advertising campaigns won’t get expensive.

Let’s go back to our PPC calculations for a minute. Even if you pay $0.50 per click, with 10,000 clicks, you will end up with a $5,000 dollar bill.

On the other hand, if 40% of those clicks converted into a sale with a $10 profit, then you are looking at a $40,000 earning. That is marketing money well spent.

So ultimately, your cost control and management are more than just receiving clicks. With the right SEM tools, you can improve and accelerate the campaign to convert more traffic into revenues.

3. Targeted Customer Marketing

Unlike traditional marketing where you are targeting as many people as possible and hoping some of them will become your customers, PPC is a much more defined marketing method.

It targets audiences who have already shown a preliminary interest in what you have to offer. PPC allows you to market to specific niche audience who fits your demographic criteria, so your ad targeting is more precise and effective. For example, use ad scheduling and geolocation settings to customize audience reach of every campaign.

Focus on Conversion

Sometimes PPC marketing can be a love-hate relationship. The best advice is to concentrate your effort on the conversion and don’t become fixated on the clicks. Make sure you are comfortable with the budget you set. Keep refining your campaign until you have found the winning strategies.