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PPC – Pay Per Click
Digital Advertising

For many, PPC is still uncertain, or is it just misunderstood?

The origins of PPC—Pay Per Click—digital advertising can be traced back to the 1990s when it emerged as a groundbreaking method for online promotion. The concept was pioneered by platforms like GoTo.com (Wikipedia), which later became part of Yahoo, allowing advertisers to bid on keywords and pay only when their ads received clicks. The real transformation came in the early 2000s when Google launched Google AdWords (now Google Ads), cementing PPC’s role as a fundamental aspect of digital marketing. Despite its widespread use today, the terms “pay per click” and “digital advertising” are often misunderstood or used interchangeably by business owners and the general public, leading to confusion about their specific meanings and how they fit together in a unified strategy. Ultimately, they all sort of came about at the same time…

Our aim is to clarify these concepts—PPC, Pay Per Click, and Digital Advertising—by breaking down each term and illustrating how they are interconnected. Recognizing their individual roles helps in understanding their collective impact, especially when managing your digital advertising budget.

History of PPC - a vintage typewriter, its metal case gleaming under dim ambient lighting, striking PPC onto the page. A sleek black modern laptop sits in the background, symbolizing the evolution of PPC advertising from traditional methods to modern automated platforms.
Pay per click for mobile devices like iPhones and iPads is crucial in the local markets. Enabling your business to be seen on every device is key to unlocking online pay-per-click potential.
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PPC

Model where businesses pay a fee each time their ad is clicked
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Pay Per Click

Synonym for PPC – its acronym for the PPC advertising model
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Digital Advertising

Broader methods beyond PPC – several are highlighted below

Pay Per Click Also Known As PPC

PPC, or pay per click, is a form of digital advertising where businesses pay a fee each time someone clicks on their ad. Unlike traditional advertising models, where payment is based on impressions or views, PPC ensures you only pay when a potential customer engages with your ad by clicking on it. This advertising method places your business directly in front of users who are actively searching for products or services related to what you offer, making it a highly targeted online approach. PPC is commonly used on search engines like Google and Bing, but it also extends to social media platforms like Facebook and LinkedIn plus display networks, and yes, even YouTube where ads appear in front of relevant, and maybe not so relevant, audiences.

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Google Ads

Google leads the pack with a dominant global market share of approximately 90.5% of all searches, making it the go-to platform for online searches – 80% of Google’s total revenues come from platform PPC advertising

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Bing Ads

Bing, which holds around 3.9% of the global market, ranks third in overall shares – Although it has a smaller share compared to Google, Bing still attracts a significant number of users, especially within Microsoft’s ecosystem

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YouTube Ads

YouTube, also owned by Google, ranks as the second-largest search engine, with billions of searches monthly – YouTube generates significant revenue through ad placements, which account for a large portion of Google’s overall income

To understand PPC, it’s important to know its key components. At the core is keyword bidding, where advertisers bid on specific keywords or phrases that users might search for when looking for related products or services. Ad placement is influenced by these bids, as well as other factors like ad quality and relevance. Cost-per-click (CPC) refers to the actual amount paid for each click, which varies depending on competition for the keyword and the ad’s quality score. The quality score is determined by factors such as the relevance of the ad copy, landing page experience, and expected click-through rate. These elements work together to ensure ads are shown to the right people at the right time.

The PPC model operates through an auction-based system, where search engine platforms like Google Ads and Bing Ads determine which ads to display for a given search query. When a user performs a search, an automated auction takes place, where ads that match the search criteria compete for placement. The platform evaluates each ad’s bid amount and quality score, awarding higher placements to ads that offer a combination of competitive bidding and high quality. Ads with better quality scores can often achieve higher rankings at lower costs, emphasizing the importance of not just bidding aggressively but also optimizing the ad content and landing pages for relevance.

Turning ideas into organized systems and plans. It’s like putting all your digital marketing efforts together into one big, coordinated campaign. With digital marketing consulting, you also get valuable advice on things like how your website is set up, keeping track of what’s happening with analytics, making the most of social media, email marketing, and improving your search engine ranking through SEO. These extra pieces can supercharge your online presence and help you connect with even more people.

Despite its benefits, there are some common misconceptions about PPC that can discourage businesses from fully utilizing it. Many perceive PPC as overly complex or expensive, fearing that without large budgets, they won’t see meaningful results. However, PPC can be tailored to fit almost any budget, with smart bidding strategies and targeted campaigns yielding high returns. Another misconception is that PPC requires constant, time-consuming management. While regular monitoring and optimization are necessary, automated tools and AI-driven features can streamline the process, making it accessible even for those with limited time or resources.

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Fully Customizable

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Demographics

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Highly Measurable

Search engine marketing: Those with the most traffic wins

When it comes to search engine marketing, PPC plays a central role in driving visibility and traffic to your website. SEM refers to the practice of using paid advertising on search engines to promote a business and its products or services. PPC campaigns are a key component of SEM, enabling businesses to bid on specific keywords that are relevant to their offerings. When a user searches for those keywords, the business’s ad appears prominently in the search results, often at the top or bottom of the first page. This prime positioning helps businesses capture the attention of users who are actively seeking solutions, making SEM a highly effective channel for lead generation and customer acquisition.

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Google is #1

Google holds the top spot as the world’s most popular search engine, accounting for over 90% of the Earth’s global search share

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YouTube is #2

YouTube ranks as the second-largest search engine with more than two billion logged-in monthly users and 1 billion hours watched daily

Google Ads has proven to be a powerful tool for businesses of all sizes, helping them reach targeted audiences and grow their customer base. For local businesses, Google Ads offers the ability to target specific geographic areas, ensuring that their ads are seen by users who are most likely to visit their locations or seek their services in-person. Features like Local Search Ads, which appear on Google Maps, allow businesses to capture the attention of users searching for nearby consumership. This level of precision targeting is highly beneficial for businesses that rely on local foot traffic, making it easier to attract customers and increase brand visibility within their communities.

For larger organizations looking to expand their reach beyond local markets, Google Ads provides a scalable platform for state and nationwide campaigns. By leveraging the platform’s advanced targeting options, such as demographic filters, keyword bidding, and audience segmentation, companies can effectively promote their products and services to a wider audience across multiple regions. The flexibility to adjust budgets, ad copy, and targeting parameters in real-time makes Google Ads an ideal choice for businesses aiming to grow at a regional or national level. Moreover, the availability of performance metrics allows companies to track the success of their campaigns, refine strategies, and maximize return on investment (ROI), making it an essential tool for sustained business growth.

Microsoft Advertising, through its Bing Ads platform, offers a valuable advertising solution for businesses seeking to expand their reach. Bing Ads allows companies to display their ads on Bing search results pages and partner networks, making it a powerful tool for local, state, and nationwide marketing efforts. For local businesses, Bing Ads provides features like location targeting and ad scheduling, ensuring that ads reach customers in specific areas at the most opportune times. Moreover, Bing’s integration with Microsoft products, like Windows and Xbox, offers additional touchpoints to reach users, enhancing visibility across different platforms.

One notable difference between Bing Ads and Google Ads lies in the demographic that Bing tends to attract. Bing users are often slightly older, with a higher percentage of users aged 35 and over compared to Google’s younger audience. Additionally, Bing has a higher concentration of users with higher incomes, as the platform is popular among professionals and corporate users who may default to Bing through their work computers. This demographic distinction can be advantageous for businesses targeting affluent consumers or specific professional segments. By leveraging Bing Ads, companies can access this unique audience, potentially facing less competition and lower costs per click than on Google, making it a strategic choice for certain industries and campaigns.

YouTube Ads offers a unique and highly effective advertising platform for businesses looking to expand their reach through video content. As the second-largest search engine in the world, YouTube enables companies to target users based on their search behavior, interests, and viewing habits, making it an ideal platform for local businesses as well as larger organizations. For local businesses, YouTube Ads allows targeted video campaigns to reach nearby audiences, driving foot traffic and raising brand awareness. With options like TrueView ads, businesses only pay when users engage with the video, making it a cost-effective way to generate interest and promote services.

For larger companies seeking state or nationwide expansion, YouTube provides an unparalleled opportunity to reach a broad audience across the U.S. Video ads can be tailored to appeal to different demographics and regions, with advanced targeting options that include age, gender, interests, and even specific YouTube channels. Moreover, the platform’s vast reach and popularity among younger demographics make it particularly effective for brands aiming to engage a more dynamic, tech-savvy audience. With detailed analytics available, businesses of all sizes and shapes can track viewer engagement and campaign performance, refining strategies to maximize the return on investment and ensure long-term growth through video marketing.

Pay Per Click Benefits Businesses in Local, Niche Industries

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Plumber PPC

Plumbers experience the quickest, highest returns possible with Google Ads and Bing Ads

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HVAC PPC

Results for HVAC companies to begin expanding into new markets without print advertising

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Roofing PPC

Roofing companies and contractors can find fast results with the right budget in your market

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Law Firm PPC

Law firms target markets immediately, resulting in phones ringing and appointments booked

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Real Estate PPC

Property managers, brokerages, and investors alike: the easiest way to get in front of people is PPC

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Denver PPC

National, state and local Denver PPC generating new, qualified leads2024 PPC offer

Digital advertising explained: What is digital advertising?

Digital advertising has gone through several transformative phases since its inception, beginning in the mid-1990s with the launch of the first banner ad by AT&T, which marked the start of the banner era. As search engines like GoTo gained traction, and later with the introduction of Google AdWords, the industry entered what became known as the channel era. The emergence of social media platforms such as Facebook and Twitter led to the social era, opening up new pathways for advertisers to reach audiences in more interactive and engaging ways. This evolution continued into the native era, where native ads became more prominent, offering a seamless experience by blending into the content around them.

From 2012 to 2019, digital advertising was characterized by the rise of mobile-first strategies, the rapid growth of the Internet of Things (IoT), and the adoption of programmatic advertising through the OpenRTB protocol, which allowed for automated ad buying. The decentralized era emerged in 2018 with regulations like GDPR and CCPA, which brought a renewed focus on data privacy and user consent in digital marketing practices. In 2020, advancements in artificial intelligence and machine learning began to reshape the industry, enabling highly personalized and hyper-targeted advertising strategies to take center stage. During this time, companies like BidsCube began working to democratize access to digital advertising tools.

As the industry continues to evolve, significant changes are on the horizon. The shift away from third-party cookies, set to be phased out in 2024, is prompting new approaches to audience targeting and data usage. The influence of Web 3.0, blockchain technology, and the growth of the metaverse are bringing about innovative advertising formats, while NFTs and cryptocurrencies introduce fresh ways for brands to interact with consumers. Together, these developments are shaping a new era in digital advertising, characterized by more immersive and secure user experiences.

Discover the origins and history of PPC, starting with the GoTo search engine, moving onto banner ads with AT&T, and ultimately having Google change the game with their PPC marketing model.
PPC is everywhere in Big Tech, including with Google, Amazon, Facebook, X, Microsoft and more.

Welcome to The New Edge of Digital Advertising!

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Google Ads ROAS

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Digital Advertising throughout a multi-faceted group of Advertising Channels

Looking back at the journey of digital advertising, it’s clear that it has evolved significantly from its humble beginnings. Now, it stands as an essential tool in the digital marketing strategies for businesses of all sizes, with its growth and influence only continuing to expand. The future holds even more exciting advancements and groundbreaking innovations that are set to shape the landscape of digital advertising.

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Search Ads

Text ads, targeting specific keywords to drive relevant traffic to websites, with options for customization and budget management

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Dynamic Search Ads

Generates content based on website indexing, extending reach by using Google’s web crawling to cover more search terms with machine learning

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Display Ads

Appearing in search engine’s networks, they target users based on interests and browsing behavior to boost visibility and attract customers

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Sponsored Posts

Social ads that blend into users’ feeds, marked as Sponsored and target audiences based on demographics, interests, etc.

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Shopping Ads

Product Listing Ads showcase products in search results with images, prices, and store details, allowing users to compare directly

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Static Image Ads

Single image with text and a clear call to action, designed to capture attention and drive engagement as users scroll through their feeds

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Local Service Ads

Local Search Ads target users searching for nearby products or services, helping businesses reach local customers far more effectively

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Carousel Ads

Swipe through multiple images or videos, each linking to different pages, ideal for showcasing various products or telling a sequential story

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Video Ads

Visual and auditory elements to capture attention dynamically, auto-playing as users scroll, making them ideal for creative storytelling

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Branded Content

Narratives that reflect values and lifestyles, focusing on emotional connection rather than sales, often using videos, articles or social media

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Stories Ads

Platforms like Instagram and Snapchat, lasting 24 hours, with full-screen visuals and a call to action, ideal for creating urgency with offers

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Influencer Marketing

Social media influencers to promote your brand or products, leveraging their appeal and followers’ trust to influence purchase decisions

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Message Ads

Personalized promos directly to users’ inboxes on platforms like Messenger, creating a more interactive experience

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Newsletter Ads

Target specific interests with text links or banner images, integrated seamlessly into newsletters, making them ideal for B2B companies

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Sponsored Content

Shares your story or products on third-party sites, blending in with their articles or videos while promoting your message to readers

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Content Syndication

Expand reach, boost brand visibility, and drive traffic back to your site by leveraging the credibility and audience of other platforms

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In-App Ads

Within mobile apps, ranging from subtle banners to immersive full-screen ads, targeting users based on usage, interests and demographics

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Audio Ads

On podcasts, streaming music, and internet radio with clear, memorable messages, targeting audiences based on listening habits

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SMS Ads

Direct messages like sales alerts or reminders, ideal for time-sensitive promos, leveraging high engagement rates to activate opted-in recipients

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Affiliate Marketing

Partnering with affiliates, like influencers, who promote your products in exchange for a commission on leads they generate

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Remarketing Ads

Reconnect past website visitors, reminding them of products they viewed and encouraging purchases, keeping your brand top of mind

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Gmail Ads

Appear in users’ inboxes, typically under “Promotions” or “Social” tabs, resembling regular emails and targeting based on email activity

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Banner Ads

Appearing at the top, bottom, or sides, using static images or animations to capture attention and drive clicks in relevant contexts

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Amazon Ads

Amazon’s search results and product pages, using images, pricing, and customer ratings to target shoppers based on their browsing

Digital advertising powerhouses transforming marketing through pay per click

If you are a business owner with a website, then you understand what it takes to not only get your brand off the ground, but to remain relevant and successful throughout time. Within Google Ads there are several ways to spend money, but these are proven approaches to maintain relevance with great ROI.

Stop playing the guessing game and begin making highly-educated decisions!

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Paid Search

Compared to traditional marketing, paid search eliminates the guesswork by allowing you to bid on relevant keywords in real-time, optimizing ad spend for maximum impact

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Performance Max

Combine all of Google’s advertising channels—search, display, YouTube, Discovery and more—a unified strategy that automatically optimizes for the highest-performing ads

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Display Network

While the conversion rate may be lower than paid search, display ads significantly increase brand visibility and keep your business top-of-mind for potential customers

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Local Service Ads

Easier for businesses to focus ad spend on attracting customers in their local market, showing your business at the top of search results with a “Google Guaranteed” badge

Growing Businesses and Delivering Scalability with Digital Advertising

By leveraging industry-leading tools for research, reporting, analysis, and alerts to ensure digital marketing strategies are both effective and data-driven, business owners can now deliver high-quality, measurable outcomes tailored to meet the unique needs of each advertising campaign, all at a cost that aligns with industry standards—offering the same caliber of results you’d expect from an agency, but without the premium price tag. Your commitment to your business goes beyond just achieving impressive metrics; you are deeply invested in the growth and success of your business. STU Enterprises is too! When you partner with us, your success directly impacts ours. We understand that when our partners excel online, it fuels our own progress, making each campaign a shared journey toward mutual achievement.

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In the world of digital advertising, scalability is paramount to progress and long term success.

Our Partners

Trusted partners with the same vision

STU Enterprises - Google Partner - Denver PPC agency serving Denver, the Front Range and throughout Colorado since 2012.

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GoDaddy - Domain Registrar service provider offering businesses the opportunity to expand their reach online through domain purchases, domain auctions, and lower level web hosting.

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