Most PPC campaigns revolve around four core principles, or 4C’s, as many marketers call them. These are Customer, Communication, Cost and Channels. These factors must be taken into account to reach your goal. They may, however, be influenced by factors such as government policies, customer needs, and company changes.
Yes! There is no doubt that PPC ads are worthwhile. This is the most efficient and cost-effective means of reaching a broader audience in a short period. The use of PPC ads allows you to reach your target audience in the shortest possible time. A significant advantage of PPC advertising is that one only has to pay if someone clicks on the ads themselves.
There are several factors that influence PPC pricing. It is usually determined by these factors that the PPC price for your business reaches a certain level. Let’s take a closer look at each of these.
- Keywords to be used
- Ad Rank
- Bid placed
- Budget for your ad campaign
- Target audience
- Industry in which your business operates
Keywords to be used:
There is a direct correlation between the keywords you bid on and the PPC cost. There is evidence that keyword competition and intent play a role in PPC pricing. The four types of search intent are navigational, informational, transactional, and commercial. Keywords with commercial or transactional intent will have a higher cost per click than keywords with informational intent. It is because these intent keywords are most likely to generate conversions and leads.
Your Ad Rank is the quality score multiplied by the maximum bid from your side. In response to a search query, Google Adwords will determine if any companies are bidding on relevant keywords. Upon finding such ads, an auction will be initiated, and all relevant ads will be put up for auction by Google, and each ad’s Ad Rank will be determined.
Once your campaign has been set up, you must decide on and set a maximum bid for the ads that will run for your business. Generally speaking, the more you bid, the higher your overall PPC cost will be. It is possible to set bids manually or you may opt for an automated bidding process. The automated bidding system will select the appropriate bidding limit, which again will have an impact on the final overall PPC pricing structure.
Budget for your ad campaign:
You should estimate how much you are willing to spend on Google PPC ads. In order to avoid overpaying for your ads, you should decide your spending limit well in advance. Your business’s ad campaign budget will ultimately determine how much you pay your PPC service provider.
A major advantage of PPC is the targeting capabilities that can be utilised to identify the exact audience to which your products or services are targeted. For PPC campaigns with a limited budget, these targeting options are essential to maximising your return on investment.
Industry in which the business operates:
PPC pricing is heavily influenced by the industry in which your business operates. You will experience a lower CPC if you sell vehicles compared to law and order bids. It is estimated that the average CPC is between two and three pounds. There will be a variation in CPC based on the industry in which your business operates.