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The Ultimate Guide For Paid Advertising

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In the digital marketing field, everyone should have heard a term called paid advertising, if not you are doing a big sin. Never worry, here is the ultimate guide for paid advertising, a.k.a God’s document of paid advertising. In this article you will learn all terms that are associated with paid advertising like PPC, CPM, CTR, how to calculate ROI, keyword tools and best practice for a good paid campaign. Below is the list of things that you can learn from this article,

What is SEM?

What is a PPC?

What is SEO?

Difference between SEO and SEM.

Which is best SEO, SEM or both?

Best practice for PPC campaign.

Check list for PPC campaign.

Google Adwords, a brief.

At the end of this article, everyone can start a PPC campaign, but practical exposure is different from theoretical knowledge. This is just guide, try your campaign and find out which works and which is not working.

What is SEM?

Search Engine Marketing(SEM) was once a combined term which has both PPC and SEO. Search engine marketing is now an independent and most used technique to drive traffic and increase search visibility of that site. Search Engine Marketing is an internet marketing way to promote a website by increasing the visibility in search engine result pages (SERPs) by using Paid advertising method.

Search Engine Marketing includes PPC (pay-per-click), CPC (cost-per-click) and CPM (cost-per-thousand impressions). Google Adwords is the best tool that one can start with paid advertising.

What is PPC?:-

Pay Per Click(PPC) is also called as Cost per click, is an internet marketing technique in which advertisers pay publishers whenever an ad is clicked. There are two types of Pay per click model

1)Flat rate-PPC

2)Bid based-PPC let us see both in brief.

In Flat rate-PPC publisher and advertiser agree upon a price that will be paid for publisher on a click. In case of Bid based-PPC, the name itself says the process is based on bidding system.The auction is hosted by publisher but now, it is carried out in an advertising network. Bid based pay per click model is widely used as a this is mostly associated with Search Engine Result Page(SERP), Google dominates this place with AdWords. Bing and Yahoo have their own native web based application for Bid based model and they some users.

What is SEO?

Search Engine Optimisation(SEO) is also a way to increase visibility of a website in search engine result pages (SERPs). There are many ways to do SEO, those will be discussed in the next topic ‘difference between SEO and SEM”. 

Difference between SEO and SEM:-

The common things between SEO and SEM are to create visibility in search engine result pages (SERPs) and driving traffic to websites. The techniques alone change, SEO involves link building, industry related keyword research and including in website and in article, using ALT tags in images, guest posting, these will increase the visibility of the website in SERPs. Always do SEO in correct way, because Google is smart enough to check a website and find what technique is used-either white hat or black hat techniques. If black hat technique is used, not alone Google all search engine will blacklist the website, it is not easy to whitelist a website. SEO is an organic way to drive traffic to a site which mostly depends content and it’s marketing strategy.

SEM is mainly done by following PPC, CPM, CPC. Paid advertising is the main key in SEM, Google Adwords is the most used web app to run a paid advertising campaign. Bing and Yahoo have their own PPC network. SEM is more border than SEO. Today SEO and SEM has become a part of digital marketing.

Which is best SEO, SEM or both?

Answer is simple, it depends on the budget and resource available in a company. There are many company who outsource SEO for their website. To tap this internet market, there are companies who do SEO, SEM. Just outsource SEO and SEM and they will take care of the rest. But is it better to have an in house SEO and SEM team in every company, because SEO and SEM is a hand in hand operation. It is easy to have a strategy, both SEO and SEM team can work together to achieve target easily.

Both SEO and SEM involve correct keyword identifying, so first doing SEO is must and later on depending on the budget SEM, paid advertising, PPC campaign can be done, because SEM is tactical. SEM is PPC + CPM+ SEO + Social Marketing + Display Ads+ Retargeting.

Best practice for PPC campaign-

Draft your campaign first and select keywords.


Campaign is for a mobile service shop called XYZ.

Campaign:-XYX mobile service.

Adgroup1:- Mobile service

Keywords:- mobile+service+shops

Negative keywords:-[China mobile service] [Keyword2]

Assume that, you are searching for a mobile service shop, and determine keyword based on it.

Check list for PPC campaign:-

First, check previous day reports and see the budget that still you have. See that you have any disapproved ads in first page. Most important is the data that Google Adwords gives you. Download and analyse the data and find which keyword performed better and try to spend more on the keyword which drives more traffic. Quality score, impressions and clicks should be included in the check list.

Running a PPC campaign is not an easy job. There are many things should be understood first like, CPC, CPM, CTR. How to calculate PPC, CPM, and CTR. Even though there are many tools available online to calculate, it is better to do it in a manual way.

PPC calculation:-

PPC= Advertising cost/Ads clicked

CPM calculation:-

Cost per thousand impression= Advertising cost/Number of Impressions

CTR calculation:-

Click Through Rate= Click-throughs/Impressions

Calculate ROI for a PPC campaign:-

Simple and standard way to calculate Return Of Investment(ROI) in a PPC campaign is

ROI=(Profit – Cost)/Cost

Strictly speaking ROI in terms of a PPC campaign, is return on ads spend. Once well versed on all calculation, one can use tools that are available online.

Google Adwords, a brief:-

Google Adwords is the tool by Google to run a Pay Per Click/paid advertising campaign. It is a widely used tool and has many features like, keyword analysing, traffic estimation for keywords, Geographical targeting. It provides a great amount of data each campaign and keywords used, so it becomes easy to determine which keyword performs good and which is not performing well and can spend money on the working keyword to drive traffic to a website.

This article would have given an idea about paid advertising and its calculation. It is better to do a campaign first and learn from it. This article is just an eye opener for PPC, SEM, SEO.

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