What is Cost Per Click Marketing – How Do You Use It ?

What is cost per click marketing?

What is Cost Per Click Marketing - How Do You Use It ?

Today I will answer the question “What is Cost Per Click Marketing “. CPC (Cost per Click) marketing is a kind of online advertising, where the advertiser has to bear the costs of whenever the users end up clicking their ads. All the advertisers participate in a bid on what they see as a value for a click with regards to the keywords, audience type and platforms from where the click originates.

Such cost per click campaigns is done for multiple reasons. One reason is to increase the sales. Another reason could be to generate new leads. Yet, another one could be for promotion or awareness of the brand. Cost per click happens to be about relevance most of the time. At any given point in time, users could be searching for specific information, services and products.

Now, advertisers have the capability to show an ad that is targeted to the keyword at the exact moment when this search is happening. For example. If a user is searching for “white walking shoes”, the advertiser is in a position to show an ad that is speaking of “white walking shoes”.

Advertisers can be successful at their cost per click campaigns by targeting their account structure and settings. However, relevance continues to be the dominant factor in any such campaign.

What are the main Cost Per Click platforms?

Google AdWords

Google AdWords is the most popular and largest cost per click program out there. It is run on Google, its partner search sites and display networks. The launch of AdWords happened in Oct 2000 and since then, it has gone through many changes over the last 2 decades.  Goole Adwords is now known as Google Ads and has been developed with the idea of being able to work for companies of all sizes, all the way from Fortune 500 companies down to very small business.

Just like AdWords, Bing also has a cost per click platform called Bing Ads. This platform shows ads on Yahoo and Bing networks. The platform also makes use of its search partners. Bing Ads are basically an advertising platform based on keywords.

It is all about keywords

keyword themes

The way advertisers get started is by choosing a keyword theme and creating separate campaigns for each set of keyword themes. For example, a cost per click user may end up creating a campaign which has the theme “Coffee Mugs”. Now, in this campaign, there will be more themed subcategories which are known as ad groups.

You can learn more about SEO Keywords here .

Such a group may consist of large coffee mugs, medium coffee mugs and small coffee mugs. It does not stop here, every ad group can then contain keyword variations based on a theme. For example, the “Large coffee mug” ad group can consist of these keywords: Large coffee mug, coffee mug large and large coffee mug on sale. A particular match type must be assigned to every keyword.

Negative keywords may also be added the same as the positive terms.

This will help in removing unqualified traffic. For example, if someone searches for “Free Large coffee cup, ” he is not looking to buy. If the advertiser chooses free as a negative keyword than their ads will not be shown when the query contains this term.

You can take this even further if you are in sales on high end type of products. In those cases, you may want to use cheap and bargain and their related terms also as negative keywords. There are various ways of segmenting the users into what all called audiences. Audiences are most often used for re marketing.

You can segment audiences based on specific views of a page, the time they spend on the website, the number of pages they visit per website visit and so on. Just the same as keywords, audience is bid upon depending on relevance. For example, an advertiser may choose to bid more so they can re market to people who want the shopping card versus viewers of the home page.

What are the different Campaign types?

Search:

Search network is the most commonly used options for targeting. The search network consists of Google and its search partners like AOL.com, amazon and many more. The Search network is basically an advertising based on keywords, which means that the ad will be shown when a similar search happens.

Display Network:

A display network contains a lot of sites, sometimes millions, that have agreed to show text, video and image ads from Google. These kinds of ads are shown as part of the website content and do not utilize the traditional targeting that used keywords. It depends more on the demographics and audiences.

For example, when a user visits a blog that talks about the evolution of coffee mugs. Even though he/she is not in the buying mode the content seems relevant to coffee mugs. The user may choose not to click on the ad, but at least now they are aware that the brand exists.

There are more ways of doing this and it really depends on what platform you have chosen. This is because they all have their own unique offerings in terms of what you can do.

Conclusion

This article should get you started in the Cost Per Click arena. You will get to learn more as you explore your platform to see what else it offers. This has not covered all the aspects because they vary based on the platform you will choose to go with. There is one thing to keep in mind when it comes to cost per click marketing, be very careful with how you set it up or you may end up accumulating a lot of fees to be paid for advertising and end up with a lot of traffic of which very few converts.

So, segmentation is key.

Also, the unofficial motto in the world of cost per click is. Test every time something changes to ensure your ads are being displayed at the right place to the right audience. Make sure you have tested all the different strategies and features your account offers.

And as we mentioned before, every account is different and has its own unique nuances. Yes, there are the best practices you should follow. But for the most part you will not know till you have tested.

If you have any questions or comments on this post What is Cost per Click Marketing and How To Use It, please leave them below.

Read more on How to monetize your Niche Sites here

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