Small business PPC guide: Benefits, considerations, tips and more 

Key takeaways: 

• Small businesses can find PPC advertising ideal because it can deliver immediate results.  
• Yes. Between PPC and SEO, the former is more costly and requires significant funding. But it also has a better potential for a high ROI. 
• PPC allows you to target specific audiences and tap qualified leads at the right time.    

In today’s growing digital landscape, you need all the boost that you can get to maximize your online presence. With pay-per-click (PPC) services, you’ll get higher chances of reaching your target audience because you’ll be able to target them according to their demographics, interests, and search behavior.  

This level of targeting ensures that ads are displayed to users who are more likely to be interested in the products or services that you offer. And this is why PPC ads convert 50% better, according to Techjury.  

In this guide, we’ll provide in-depth information about PPC, its definition, whether you should use this for your business, and more. By the end of this article, you should be able to assess whether PPC is a smart solution for your business or not.   

What is PPC (Pay-Per-Click) marketing? 

PPC is a digital advertising model where advertisers pay a certain amount every time users click their ads.     

Your PPC ads are likely to attract users who are looking for certain products or services. That’s because they contain aesthetic elements and complementary information such as images, price, operation hours, and star ratings.    

These are only some of the factors that make such a form of advertising effective and efficient for targeting customers that use specific search terms—people ready to buy and want to have access to commercial information that PPC ads provide.  

Also, once you’ve learned how to employ ads on websites like Google, it’s easy to do the same on other platforms such as Bing, Facebook, and X (Twitter). 

PPC marketing offers businesses a cost-effective way to reach their target audience. By carefully selecting keywords and crafting compelling ad copies, advertisers can attract potential customers who are actively searching for products or services similar to what they offer. The bidding system ensures that advertisers with higher bids and better ad quality have a greater chance of their ads being displayed. Here’s how it usually goes:  

1. A user enters a search query on a search engine. 
2. A PPC auction takes place behind the scenes. 
3. The search engine analyzes the relevance and quality of advertisers’ ads. 
4. The search engine determines which ads to display based on factors such as bid amount, ad quality, and landing page experience. 
5. If the user clicks on an advertiser’s ad, they are directed to the advertiser’s website. 
6. The advertiser pays the search engine a predetermined amount based on the bid. This process allows businesses to gain visibility and attract potential customers while only paying when someone clicks on their ad. 

PPC campaigns require continuous monitoring and optimization to ensure maximum return on investment (ROI). Advertisers can track the performance of their ads, make adjustments to bidding strategies, refine targeting, and refine ad copy to improve campaign effectiveness and drive more conversions. 

PPC vs. SEO 

As mentioned earlier, PPC marketing is different from SEO, which aims to improve organic traffic from search engines.

PPC advertising and Search Engine Optimization (SEO) are forms of search engine marketing (SEM) strategies that help direct traffic to a website from search engines. However, they are two different channels that can work together for successful online growth. 

PPC advertising involves paying for every click of your ad. Meanwhile, SEO refers to improving your website’s visibility on search engines. Below are their key characteristics:  

Four key components of PPC Marketing 

There are several components to a PPC campaign. All of which are necessary to get your business and its message out to potential customers. Let’s get into the details for each item below.

1: Keywords 

Keywords act as a trigger that lets ads show up on Google. When a user searches online, keywords will help match and display ads related to the query. Let’s say a customer searches for pizza in New York, it picks up ads from businesses with keywords like “best pizza in NY” or “best New York pizzeria.”  

Keywords are vital to search engine marketing campaigns, so you should thoroughly research which relevant keywords have a high click-through rate (CTR) and cost-per-click (CPC).  

2: Ad auction   

An ad auction decides what order and which ads show whenever someone searches online. Here are the factors that Google considers in determining the ad’s relevance to the user’s query: 

• Bid – the maximum amount you’re ready to spend for a click on your ad.  
• Quality score– your ad’s importance and usefulness to searchers. 
• Ad extensions and formats impact – additional information to your ads, such as your location, contact number, site links, and more.

3: Ad groups 

Ad groups store your search marketing campaign’s keywords and help organize your PPC account into a coherent structure. It determines the keywords your ads will respond to, your ad’s statement, and your visitor’s destination when clicking your ad. The number of ad groups within a campaign depends on the number of keyword groups bid on.  

4: Quality score 

Quality score refers to the relevance and quality of your ads compared to other advertisers, which is measured on a zero to ten scale. A high score will improve your ad rank and lower your cost-per-click. 

The quality score is dependent on three components which include:  

• Click-through rate (CTR) – how often your ad will be clicked on when on display based on previous performance data. 
• Ad relevance – how closely your ad’s content matches the keywords you’re targeting.
• Landing page experience – whether your landing page has high content relevancy, navigability, and business transparency. 

How to manage your PPC campaign

The work doesn’t end after your new campaign goes live. You need to manage them for their continued efficiency and modify them when necessary.  

Regular account activity is one of the leading indicators of a successful campaign. Analyze your campaign’s performance and make improvements. This includes the following but is not limited to: 

• Picking the right PPC keywords. Keywords must be relevant to your business and expand your business’ reach. In addition, keywords also help improve campaign relevance and reduce wasted spending. Keep up on keyword research and see what works best. 
• Pruning costly PPC keywords: Review expensive and weak keywords. Take them out and replace them with better keywords.  
• Optimizing copy and landing pages: Improve your quality score by creating unique and valuable copies for your viewers that are better than what your cometitors have. 
• Checking the competition: Begin by identifying the main players in your industry or niche. These are the businesses targeting the same keywords and audience as you.
• Tracking your results: Monitor the effectiveness of your campaign and adjust your PPC marketing strategy accordingly. Don’t forget to incorporate successful tactics while also finding ways to differentiate your website today.

What are the advantages of PPC advertising for small businesses?  

Standing out in your market is a must, and this is where PPC for small businesses comes in handy. Read on for advantages that allow you to position yourself ahead of competition. 

Cost efficiency and budget control 

Are you worried about overspending? You’d be happy to know that the probability of doing so is reduced with PPC advertising. It allows you to have control of your budget since you can set limitations for keyword or phrase bids and ad costs for a set period. This enables you to decide how much you will spend and adjust it to fit your financial limitations.    

You only pay when someone clicks your ad. This cost-efficient way to reach new customers has the potential for a high return on investment (ROI).   

Targeted reach and audience segmentation 

Precision is important in the fast-paced world of digital marketing and online advertising. PPC stands out in this aspect. It allows you to target specific audiences and tap qualified leads at the right time.    

You can also use audience targeting to omit specific audiences—based on gender, age, interests, and location—from seeing your ads. Additionally, you can use content-based targeting to reach individuals who are relevant to the product or service that you offer. This allows you to boost brand awareness and generate more qualified leads.   

Measurable key performance indicators (KPIs) 

Small business PPC offers tangible results that you can proactively monitor and analyze. You can track conversions, ROI, and other key metrics. As you measure business success and potential shortcomings, you’ll be more capable of maintaining or tweaking your strategy to meet your business needs.    

There are several PPC KPIs that you need to track. Some of the most notable ones are as follows:

• Keyword quality score. Quality score is a Google Ads metric that calculates the performance of your ad campaigns. Google uses it to determine your ad rank or an ad’s position on SERPs. A high score indicates a better probability of appearing in SERPs and reaching users, which means an ad rank of 1 puts your ad on top. If you aggressively bid and your top and absolute top impression rate or search lost impression share rank metrics are off, your keyword quality score is probably the culprit. You can improve it by making landing pages or ads more relevant to your products or services. 

• Click-through rate. This is the percentage of users who view your ad (impressions) and click it. For reference, if your ad has 1,000 impressions and one click, the CTR is 0.1%. If you have a high CTR, many find your ad relevant. CTR varies depending on the industry; across 16 industries monitored by Google ads, the average CTR is 3.17% for search and 0.46% for display. While there is no ideal number, the goal is to go high since it boosts the probability of getting relevant users to visit your site and perform the right action. These desired actions include making a purchase, hiring a service, or making an inquiry. 

• Conversion rate. Conversion rate measures the percentage of clicks that end in conversions. If 10 users click your ad and five convert, you have a conversion rate of 50%. A low conversion rate suggests that users click your ads, but they don’t make an action that has a positive impact on your business. If you want to boost it, consider optimizing your landing pages by creating a compelling headline, employing a clean design, and using an eye-catching call-to-action button. Creating compelling headlines can be challenging, but tools like Monster Headline Analyzer and Advanced Marketing Institute can simplify the process. 

• Cost per click. The amount you are willing to spend for each click your ads receive. To calculate, divide total costs by the total number of clicks. This allows you to have a clear overview of how much you get with your money. For instance, you spend $100 over a set period. If you earn 100 clicks during that timetable, it’s a CPC of $1.00, which is great. But if you got two clicks, that’s a CPC of $25.00, which is not ideal. 

With the said factors in mind, PPC can propel your small business to the top pages of SERPs. This is possible by bidding your way to the said position rather than paying a flat rate. Such procedure determines how much you’ll pay when a user clicks on your ad.   

Flexible campaign adjustments 

Small business PPC is a practical investment since it offers flexibility, allowing entities with limited funding to set their own ad spend and target specific audiences. This is thanks to its selected marketing feature. With the right strategy, you can tweak your campaign for maximum ROI.    

Key areas of PPC flexible campaign adjustments include the following:   

• Keyword management. Refine your keyword research strategy by identifying and focusing your budget on high-performance keywords. Also, adjust match types: broad, phrase, and exact to manage how closely search queries match your keywords.     

• Bid optimization. Monitor your CPC to adjust bids based on performance; increase bids for high-converting keywords and reduce bids for low-performing ones. Use bid modifiers based on factors such as location, time of day, and device.    

• Budget management. Adjust your budget based on seasonal trends and fluctuations in demand. When making decisions for your PPC campaigns, rely on data and analytics, not assumptions. 

Considerations before adopting PPC campaigns 

Budget constraints  

Before diving into PPC advertising, it’s crucial to assess your budget. PPC campaigns require an investment, as you’ll be paying for each click on your ads.  

Determine a realistic budget that aligns with your business goals and ensures you can sustain your campaigns over time. Carefully plan and allocate your budget to maximize your return on investment (ROI) and achieve your desired outcomes. 

The need for continuous optimization and management  

PPC advertising is not a “set it and forget it” strategy. It requires ongoing optimization and management to ensure optimal performance.  

Regularly monitor your campaigns, analyze data, and adjust based on insights. This includes refining keywords, ad copy, and targeting parameters. Be prepared to invest time and effort into managing your PPC campaigns to achieve the best results. 

Possibility of not getting instant results  

While PPC can deliver quick results, it’s important to understand that instant success is not guaranteed. Building effective campaigns takes time, testing, and refinement. Be patient and persistent, as it may take some time to find the winning formula for your ads. Stay committed to continuous improvement, and with time, your campaigns will become more efficient and yield better results. 

Competitiveness in your industry or niche  

Some industries have highly competitive keywords and bidding environments, which can drive up costs. Research your competitors and evaluate their PPC strategies. Understand the landscape and be prepared to invest in competitive bidding to gain visibility. It’s crucial to assess the potential ROI against the level of competition to ensure PPC aligns with your business goals. 

Small business PPC tips  

With evolving consumer behavior and algorithm updates, a successful PPC strategy requires actionable insights to refine your campaign. Let’s dive into practical tips that can transform your efforts into something that works. 

• Perform keyword research: Keywords are vital for small business entities conducting a PPC campaign. For instance, Google processes up to 3.5 billion searches per day, and businesses that cannot be found on the Internet may not succeed. So, target the right keywords with the right volume to drive traffic, but not too competitive that paid clicks become too expensive. 

• Write ad copies that convert: You only have seconds to grab the attention of search engine users. That’s why addressing their pain points is a must. Focus on your brand’s strengths since standing out is key in a competitive online marketplace. Along the way, leverage your unique selling point (USP) and meet your campaign goals. 

• Optimize landing pages: Optimized PPC landing pages deliver a strong message that matches your ads, providing relevant and targeted content. Emphasize user experience and make sure it’s complemented by clear headlines, easy navigation, fast loading speeds, and catchy CTAs. 

• Use geographic keywords: Geographic keywords are vital for PPC since they allow precise targeting, reach relevant local users, and cut down wasted ad spending. This boosts ad relevance, CTA, and conversion rates with local searchers. They also provide a competitive edge, enhance local visibility, and make your brand easier to find. 

• Boost quality score: Quality score measures the relevance and performance of your ads. To increase quality score, prioritize relevance across keywords and landing pages. Optimize keywords, craft compelling ad copies, and offer a seamless user experience. Perform continuous monitoring to enhance performance and improve revenue gain. 

• List negative keywords: You need to understand negative keywords like “cheap,” “torrents,” and “open source” for PPC campaign performance. Negative keywords play a key role in optimizing budget allocation and maximizing campaign efficiency by refining targeting and cutting down unnecessary clicks. This ensures your ads reach interested users. Along the way, it improves ad relevance, CTR, and quality score. 

• Include clear CTAs: Clear CTAs can attract attention and encourage users to take the next step. Generally, these CTAs have strong verbs like “shop,” “buy,” or “order.” They also come with words that provoke enthusiasm. For instance, for users looking for workout equipment, you can include a CTA like “Take your fitness to a different level!” This can excite them, especially if they want to enjoy the top benefits of their health routine.   

Grow your small business with PPC  

Small businesses that strategically implement PPC can gain a competitive edge through precise targeting, cost control, and measurable results. PPC also allows these entities to compete with more established businesses in search results while maintaining budget control. With all these in mind, PPC is valuable for resource-conscious small businesses.   

Ready to delve into the PPC trend? Don’t let technical limitations hold back the success potential of your business and meet your campaign goals. Web.com’s AI-powered website builder can help you create a professional online presence, while PPC can help you jumpstart your digital marketing efforts. 

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