Understanding Pay-Per-Click (PPC) Ads
Google Ads is one of those things that seems simple—until you try to do it yourself. Which is why we offer free initiation consultations!
Pay-per-click (PPC) advertising can be a game-changer for businesses, but only when done right. David, our Google Ads expert at Starling, has been working in PPC for 21 years, bringing decades of digital marketing experience to the table. His approach focuses on strategy, measurement, and ensuring businesses get real value from their ad spend.
David doesn't just focus on who sees an ad—he focuses on who doesn't see it. Because the best campaigns aren't just about visibility; they're about reaching the right audience at the right time.
What Are PPC Ads?
PPC is an online advertising model where businesses only pay when someone clicks on their ad. Google Ads is the most popular PPC platform, but these kinds of ads can also run on Facebook, Instagram, LinkedIn, and others. The key difference with Google Ads is that it targets people actively searching for solutions, making them high-intent customers.
Google Ads shows ads at the top of search results based on relevant keywords, with businesses bidding on those keywords. Ads can also appear across the Google Display Network, which includes websites, YouTube, and Gmail. With advanced targeting options, businesses can reach the right audience at the right time, maximizing their return on investment.
Google Ads: The Basics
One of the biggest misconceptions about PPC is that it's about getting as many clicks as possible.
David believes that in search campaigns, it's not just about who sees your ads but who doesn't. The goal goes beyond visibility and focuses on precision. The best PPC campaigns target the right audience, increasing the chances of converting those viewers into customers.
He often hears people say, "I never click those ads." To that, he says, "Perfect. We only want you to click those ads when it's exactly what you're looking for." Google Ads remains one of the most effective ways to reach potential customers because it places businesses in front of people actively searching for their products or services.
The Benefits of PPC Ads
- Control over where and how your ads appear across platforms.
- Lower your cost per click by improving your ad quality and performance.
- Narrow your audience targeting to make sure your ads reach the right people.
- Set and manage your budget, both daily and by campaign, to suit your needs.
- Bid on relevant keywords and phrases to target users interested in your products or services.
- Track your ad performance, allowing you to make data-driven adjustments for better results.
PPC Ad Examples
The most common example of PPC is on search engines like Google. On these platforms, you can buy different kinds of ads, like text ads or Shopping ads, to appear in different sections of the search results.
The sponsored ads are what Google Search results bring up.
Google Shopping looks like this.
While search ads appear on search engines, Display ads can show up on websites and apps within the ad network. For example, the Google Display Network spans over 2 million sites and apps, including Google properties like YouTube and Gmail.
Key Terms in PPC
When looking at reports from our team, it's important to know these key terms to understand what you are looking at:
Impressions refer to how many times your ad is shown to users, regardless of whether or not they click on it. A high impression count with few clicks could mean that your ad isn't as effective as it could be, and you may need to rethink aspects like the headline or the copy.
CPC (Cost Per Click) is the amount you pay each time someone clicks on your ad. This cost can either be fixed or fluctuate based on an auction system. In this auction, you set the highest price you're willing to pay for your ad placement (called your bid), and Google or other platforms compare your bid to others along with additional factors to decide which ad appears first.
CTR (Click-Through Rate) is the percentage of users who click on your ad out of the total number who saw it. A higher CTR indicates that your ad is resonating with viewers, and platforms like Google tend to favour ads with a higher CTR, as it's a sign that they are engaging and relevant.
Conversion is the action you want your audience to take after interacting with your ad. This goes beyond just a click—conversions might include purchasing, signing up for a newsletter, or completing a contact form. The goal is to drive valuable actions that help meet your business objectives.
How To Determine Your PPC Budget
You are going to hate this answer, but it depends. Businesses need to consider their price point, profit margins, and customer demand before deciding on an appropriate budget.
"If you've got a $5 product and you're spending $4 on clicks, Google Ads MAY not really make sense," David explains. However, PPC can be a worthwhile investment for businesses with higher-value services or products. Always consider the lifetime value of a customer or other intangibles rather than only the initial transaction.
David also highlights that PPC isn't just about direct sales—it's about reach. "Google Ads can get to places that your salespeople will never pick up the phone and call. When was the last time you bought something meaningful that you didn't research online? Never."
Google Ads For Non-Profits
David finds working with non-profits one of the most rewarding parts of his job. Many charities qualify for Google Ad Grants, which offer up to $10,000 in monthly advertising credits. But he points out that not all non-profits can use the full amount.
"Very few can spend the $10,000 because of scale, but spending $500, $1,000, or $2,000 can make a real difference." David helps non-profits secure their Google non-profit status, get approved for the grants, and develop a strategy that maximizes their budget. For him, it's about creating a real impact and helping non-profits achieve their marketing goals.
PPC Mistakes
One of the biggest mistakes businesses make with PPC is failing to track results. David emphasizes that "If you can't measure it, you can't make good decisions." Successful campaigns need to track key actions, like conversions, phone calls, and purchases. He also notes that Google Ads has evolved. It's no longer just about keywords — it's about intent. Five people might type in the same search, but based on past data, Google now prioritizes the one most likely to convert.
David uses advanced audience targeting, keyword selection, and budget control to fine-tune campaigns. He's constantly testing, tweaking, and optimizing to make sure clients see the best return on investment.
PPC is about more than just running ads. We focus on understanding a business and its goals and defining what success looks like. Like everything our team puts out at Starling, a common sense, strategic, data-driven approach makes sure every ad dollar goes as far as it can.
If you're interested in learning more about what Google Ads may be able to do for your business or want us to review your current campaigns, you can contact us here. We are happy to have a free no obligation conversation to explore the possibilities.
