Concept of Pay Per Click (PPC) and Conversion Rate Optimization (CRO) explained

Last updated on May 28 2022
Meetesh Sahu

Table of Contents

Concept of Pay Per Click (PPC) and Conversion Rate Optimization (CRO) explained

Pay Per Click, commonly referred to as PPC, refers to a model of internet marketing during which advertisers pay a fee whenever one among their ads is clicked. Pay-per-click is calculated by dividing the advertising cost by the amount of clicks generated by a billboard, the essential formula is −
Pay-per-click ($) = Advertising cost ($) ÷ Ads clicked (#)
Essentially, PPC may be a way of shopping for visits to your site, instead of attempting to earn visits organically.
Search Engine Advertising
Search engine advertising is one among the foremost popular sorts of PPC. It allows advertisers to bid for a billboard placement during a search engine’s sponsored links when someone searches employing a keyword that’s associated with their business offering.

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For example, if you bid on the keyword “marketing classes,” several ads might show up within the very top spot on the Google results page. whenever a selected ad is clicked, sending a visitor to their website, they need to pay the program alittle fee. When PPC is functioning correctly, the fee is trivial, because the visit is worth quite what’s purchased it.
Advantage of PPC Marketing
The unique advantage of PPC marketing is that the ad networks wont to manage PPC campaigns don’t just reward the very best bidders for that ad space, rather they reward the highest-quality ads (meaning the ads that are hottest with the users).
• Ads are rewarded permanently performance.
• The better the ad, the greater the click-through rates and lower the prices .
• Many marketers prefer to use Google AdWords to manage their PPC campaigns. The AdWords platform enables businesses to make ads that appear on Google’s program and other Google properties.
Factors behind Successful PPC Advertising
How often your PPC ads appear depends on which keywords and match types you decide on . While variety of things determine how successful your PPC ad campaign are going to be , you’ll achieve tons by that specialize in −
Keyword Relevance − Crafting relevant PPC keyword lists, tight keyword groups, and proper ad text.
Landing Page Quality − Creating optimized landing pages with persuasive, relevant content and a transparent call-to-action, tailored to specific search queries.
Quality Score − Quality Score is Google’s rating of the standard and relevance of your keywords, landing pages, and PPC campaigns. Advertisers with better quality scores get more ad clicks at lower costs.
Your entire PPC campaign is made around keywords, and therefore the most successful AdWords advertisers continuously grow and refine their PPC keyword list.
In conclusion, PPC advertising offers a singular opportunity to −
Grow Your Customer Base − Connect with searchers actively trying to find products and services like yours, and answer the necessity by providing them with a suggestion relevant to their search query.
Generate Leads at Low Costs − As pay-per-click marketing allows you to succeed in leads and prospects when they’re researching and searching to shop for , it’s a highly effective thanks to bring interested visitors to your site. additionally , you’ll enjoy an algorithmically generated discount from the search engines in exchange for creating their users happy.
Digital Marketing – CRO
CRO stands for Conversion Rate Optimization. Whatever could also be the last word goal of your website, a conversion is that the successful completion of that action. CRO is that the process of optimizing the location to extend the likelihood that visitors will complete a selected action.
Conversion Rate may be a key metric in e-commerce, because it reveals the share of the site’s total traffic completing a selected goal. the upper the conversion rate, the higher.

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Once you’ve got defined what conversions you would like to trace, you’ll calculate the conversion rate.
Let’s assume you regard a purchase as your conversion. As long as you’re tracking the amount of leads you get and therefore the number of resulting sales (conversions), you’ll calculate your conversion rate −
$Conversion Rate = \frac{Total Number of Sales }{Number of Leads} \times 100$
When you know what the worth of a lead is, you’ll determine what percentage leads you would like monthly to sustain your business and the way much you ought to buy advertising. this is often true whether you’re using pay-per-click (PPC) or any offline advertising like mailers or print ads.
What is CRO?
Conversion Rate Optimization is −
• A structured and systematic approach to improving the performance of the web site .
• Informed by insights − specifically, analytics and user feedback.
• Defined by the website’s unique objectives and wishes (KPIs).
• Taking the traffic that you simply have already got and making the foremost of it.
What CRO isn’t
Conversion Rate Optimization isn’t −
• Based on the guesses, hunches, or what everyone else is doing.
• Driven by the very best paid person’s opinion.
• About getting as many users as possible, no matter the standard or engagement.

Why do Companies Use CRO?

CRO plays a crucial role in improving the efficiency of critical processes. Here, we’ll discuss the foremost common areas where companies evaluate CRO.
• A/B testing − what’s A/B testing? In basic terms, you found out two different landing pages, each features a different element from the opposite. Your site presents the “A” version of those pages to half your traffic and therefore the “B” version to the remaining half. Then you’ll see whether or not a little change to a call-to-action (CTA) can make a difference in conversion rates.
• Customer Journey Analysis − How did your customers progress from brand awareness to purchase? Also often mentioned as a Conversion Funnel.
• Cart abandonment analysis − Investigate the explanation for not finding out, once the things are added to a handcart.
• Segmentation − Segmentation shows approaches to grouping prospects and customers to deliver more relevant communications and offers for better response rates to those communications.
In addition, CRO is employed for copy optimization, online surveys, and customer feedback.
So, this brings us to the end of blog. This Tecklearn ‘Concept of Pay Per Click (PPC) and Conversion Rate Optimization (CRO) Explained’ blog helps you with commonly asked questions if you are looking out for a job in SEO and Digital Marketing. If you wish to learn SEO and build a career in Digital Marketing and SEO domain, then check out our interactive, SEM and Digital Marketing Training, that comes with 24*7 support to guide you throughout your learning period. Please find the link for course details:

SEM and PPC

SEM and Digital Marketing Training

About the Course

Tecklearn’s Search Engine Marketing involves promoting your brand’s presence through paid advertising via search engines. This Search Engine Marketing certification training course includes detailed study of PPC, Google AdWords, building paid advertising campaigns, tracking, optimizing and remarketing. You will gain hands-on experience through live projects to understand the requirements of the industry.

Why Should you take SEM and Digital Marketing Training?

• Digital Marketing Industry Worth $62 Billion – The Wall Street Journal
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What you will Learn in this Course?

Introduction to Search Engine Marketing
• Importance of search engine marketing
• Benefits of online advertising Versus other forms of advertising
• Advertising on search engines such as Google, Bing, Yahoo and networks & websites
Building a Sustainable Social Media Strategy
• Social Media Challenges
• Strategy Building
• Creating a Campaign
• Planning and Benefiting from Strategy
Keywords Research
• Introduction to keywords
• Choosing the right keywords based on the business angle and what customers search on search engine
• Various types of keyword match and the significance of each keyword match type
Google Analytics – An Overview
• Basics of google analytics
• Importance of various dimensions and metrics and how they can impact your website
• Deep dive into how to setup your account and grant the permissions to other users
• Creating PPC ad campaigns
Google Analytics – KPIs & Tools Integration
• Working with the various metrics in Google ad campaigns
• Monitoring the right metrics
• Measuring the performance of ads
• Concept of Conversion Tracking and ways to set up Conversion Tracking
• Track Code in website and Verifying Conversion statistics
Google Analytics – Audience Reports & Analysis
Google Analytics – Behaviour Analysis
Google AdWords Express
• Overview of Google AdWords Express
• How it is different from Google AdWords
• Features and Benefits of AdWords Express
• Getting the right performance of ads
Reporting in PPC
Extracting reports with Google AdWords, KPI’s, reporting segments, and other useful reports in Google AdWords.
Introduction to remarketing
Introduction to remarketing, remarketing campaign setup, remarketing List Creation, creating advanced level Lists
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