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Pay-Per-Click (PPC) Strategies for Beginners

Updated: May 29

There are three main types of PPC strategies - CPC (Cost per click), CPA (Cost per Acquisition), and CPM (Cost per mille (thousand) views or impressions). The CPC strategy is an ad strategy based on the number of clicks and bids to an ad. Similar to this strategy is CPA, which instead is a cost per conversion instead of click. The CPA is an advanced strategy to the CPC in which the ads can be placed in a precise strategy to drive adequate conversion. CPM is a paid ad strategy that focuses on building brand awareness (Krolewicz, 2017). This brand awareness strategy can be seen as similar or found on Social Media platforms.

A great example of the CPM being used on many platforms is the NFL draft. Here in Kansas City MO, the draft pick was free to the public and allowed up 60k people. There have been a host of ads in many formats advertising the draft with its basic details. While many may click on the ad, it is a general awareness ad used to inform the local area of the Draft and to come to join.

What Pay-Per-Click (PPC) Strategy Should Small Businesses Use?

Determining the right pay-per-click (PPC) types for a small business involves a strategic approach that aligns with your goals, target audience, and budget. Here's a step-by-step guide to help you decide which PPC types are suitable for your small business:

  1. Set Clear Goals: Identify your business objectives. Do you want to increase website traffic, generate leads, boost sales, or enhance brand awareness? Your goals will dictate the most appropriate PPC types to use.

  2. Understand Your Audience: Define your target audience. Understand their demographics, behaviors, and preferences. This information will help you choose PPC platforms where your audience is most active.

  3. Research PPC Platforms: Explore different PPC platforms like Google Ads, Facebook Ads, Instagram Ads, LinkedIn Ads, and more. Each platform offers unique targeting options and reaches different audiences. Choose platforms that align with your audience and goals.

  4. Consider Budget Constraints: Determine your budget for PPC advertising. Some platforms are more cost-effective than others. Choose PPC types that align with your budget while ensuring effective reach and engagement.

  5. Keyword-Based Search Ads (Google Ads): If your goal is to capture users actively searching for products or services like yours, keyword-based search ads on Google can be effective. It targets users with high intent and directs them to specific landing pages.

  6. Display and Banner Ads: For brand awareness and reaching a broader audience, consider display and banner ads. These visually appealing ads can be placed on websites, apps, and social media platforms.

  7. Social Media Ads: If your target audience is active on platforms like Facebook, Instagram, or LinkedIn, social media ads can help you engage with them directly. These platforms offer detailed audience targeting options.

  8. Video Ads: If you have engaging video content, platforms like YouTube and social media offer video ad options. Video ads can convey your message effectively and create a strong impact.

  9. Retargeting Ads: Retargeting ads track users who have previously visited your website. This type of ad can remind them of your offerings and encourage them to return and convert.

  10. Local Advertising: If you have a brick-and-mortar store, consider local advertising options like Google Local Services Ads or location-based targeting to attract nearby customers.

  11. Measure and Optimize: Regularly monitor the performance of your PPC campaigns. Analyze metrics such as click-through rates (CTR), conversion rates, and return on ad spend (ROAS). Adjust your strategy based on the data to optimize results.

  12. A/B Testing: Experiment with different ad creatives, headlines, and call-to-action buttons. A/B testing helps you identify which elements resonate best with your audience and drive better results.

  13. Consult with Experts: Consider seeking advice from PPC professionals or agencies. They can provide insights tailored to your business, ensuring your PPC strategy is effective.

Choosing the right PPC types for your small business involves a thorough understanding of your goals, audience, and available resources. By considering these factors and continuously analyzing results, you can develop a well-rounded PPC strategy that drives meaningful results for your business.

References: Krolewicz, L. (2021). CPA, CPC, and CPM: Which Is the Best AdWords Bidding Solution? Yael Consulting.



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