Paid Search Advertising: PPC Foundations and Targeting
The Auction House Story
Imagine you’re at a magical auction house. But instead of buying antiques, you’re bidding for the chance to show your lemonade stand sign to people walking by who are thirsty!
This is Pay-Per-Click (PPC) advertising. You only pay when someone actually clicks on your sign. No click? No charge!
What is PPC?
PPC = Pay-Per-Click
Think of it like a toll booth on a highway:
- You set up your sign (ad) at the toll booth
- People drive by and see your sign
- Only when they actually pull over to visit your lemonade stand, you pay
Real Example:
- You sell running shoes
- Someone searches “best running shoes”
- Your ad appears at the top
- They click → You pay $1
- They don’t click → You pay $0
graph TD A[Someone Searches] --> B[Your Ad Shows] B --> C{Did They Click?} C -->|Yes| D[You Pay] C -->|No| E[FREE!]
Google Ads Account Structure
Your Google Ads account is like a filing cabinet. Everything has its proper place!
The Three Levels
graph TD A[🏢 ACCOUNT<br>Your Business] --> B[📁 CAMPAIGN<br>Running Shoes] A --> C[📁 CAMPAIGN<br>Hiking Boots] B --> D[📂 Ad Group<br>Men's Shoes] B --> E[📂 Ad Group<br>Women's Shoes] D --> F[📝 Ad 1] D --> G[📝 Ad 2] D --> H[🔑 Keywords]
Simple Breakdown
| Level | What It Is | Example |
|---|---|---|
| Account | Your whole business | “Sarah’s Shoe Store” |
| Campaign | Big category + budget | “Running Shoes - $50/day” |
| Ad Group | Specific theme | “Men’s Running Shoes” |
| Ads | The actual message | “Fast & Comfy Men’s Runners!” |
| Keywords | Search words that trigger ads | “men’s running shoes” |
Example:
- Account: Pizza Palace
- Campaign: Delivery Orders
- Ad Group: Late Night Pizza
- Keywords: “pizza delivery near me”, “24 hour pizza”
- Ad: “Hungry at 2AM? We Deliver!”
Quality Score: Your Report Card
Google gives your ads a report card from 1 to 10. Better grades = better results!
What Makes Up Your Grade?
graph TD A[🎯 QUALITY SCORE<br>1-10 Points] --> B[📊 Expected CTR<br>Will people click?] A --> C[🎨 Ad Relevance<br>Does ad match search?] A --> D[🏠 Landing Page<br>Is website helpful?]
Think of it like a restaurant review:
| Factor | Question | Restaurant Example |
|---|---|---|
| Expected CTR | Will people choose you? | “Do people pick this restaurant?” |
| Ad Relevance | Does your ad match what they want? | “Menu matches what’s advertised?” |
| Landing Page | Is your website helpful? | “Is the restaurant clean and nice?” |
Real Example:
- Search: “cheap yoga mats”
- Good Ad: “Yoga Mats Under $20 - Free Shipping!”
- Bad Ad: “Premium $200 Yoga Equipment”
The first ad gets a higher Quality Score because it matches what the person wants!
Ad Rank: The Placement Formula
How does Google decide whose ad shows first?
It’s NOT just about money! Google uses a secret recipe:
The Magic Formula
Ad Rank = Your Bid × Quality Score
Story Time:
- Rich Rita bids $10, Quality Score = 2
- Smart Sam bids $5, Quality Score = 8
Who wins?
- Rita: $10 × 2 = 20 points
- Sam: $5 × 8 = 40 points
🏆 Sam wins! Even with half the money, Sam’s better Quality Score makes him #1!
graph LR A[💰 Your Bid] --> C[🏆 AD RANK] B[⭐ Quality Score] --> C C --> D[📍 Your Position]
What This Means For You
| Scenario | Bid | Quality Score | Ad Rank | Position |
|---|---|---|---|---|
| High Bid, Low Quality | $10 | 3 | 30 | 2nd |
| Low Bid, High Quality | $5 | 8 | 40 | 1st! |
| Both Average | $7 | 5 | 35 | Depends |
Lesson: A great ad can beat a rich competitor!
Keyword Match Types: The Filter System
Keywords tell Google when to show your ads. But how strict should Google be?
The Four Filters
Think of it like a bouncer at a club:
| Match Type | Symbol | Strictness | Example |
|---|---|---|---|
| Broad Match | none | Very relaxed | Lets almost everyone in |
| Phrase Match | “quotes” | Medium | Must have the magic phrase |
| Exact Match | [brackets] | Very strict | Only exact guests allowed |
| Negative Match | -minus | Blocks entry | Keep these people OUT |
Real Examples
Your keyword: running shoes
| Match Type | Your Keyword | Searches That Trigger Ad |
|---|---|---|
| Broad Match | running shoes | “jogging sneakers”, “athletic footwear”, “marathon gear” |
| Phrase Match | “running shoes” | “best running shoes”, “running shoes for women” |
| Exact Match | [running shoes] | “running shoes” (only this!) |
graph TD A[Search: best running shoes for women] --> B{Match Type?} B --> C[Broad ✅<br>Shows ad] B --> D[Phrase ✅<br>Shows ad] B --> E[Exact ❌<br>No match]
When to Use Each
| Goal | Best Match Type | Why |
|---|---|---|
| Get lots of traffic | Broad | Casts widest net |
| Balance traffic & relevance | Phrase | Good middle ground |
| Target specific shoppers | Exact | Most precise |
Negative Keywords: The Bouncers
Negative keywords are like bouncers. They STOP your ad from showing to wrong people!
Why You Need Them
Imagine you sell luxury watches.
Without negative keywords:
- Someone searches “cheap watches” → Your ad shows → They click → You pay → They leave (too expensive!)
You wasted money!
How to Use Them
Add negative keywords to block bad traffic:
| Your Product | Add These Negatives |
|---|---|
| Luxury watches | -cheap, -free, -replica, -fake |
| New furniture | -used, -secondhand, -repair |
| Paid software | -free, -crack, -pirated |
Example:
- Keyword: running shoes
- Negative: -free
- Search “free running shoes” → Your ad WON’T show!
graph TD A[Search: free running shoes] --> B{Check Negatives} B -->|Has 'free'| C[❌ BLOCKED<br>Ad not shown] B -->|No negatives| D[✅ Ad Shows]
Money saved = Money earned!
Ad Extensions: The Bonus Features
Ad extensions are FREE upgrades that make your ad bigger and better!
Types of Extensions
| Extension | What It Adds | Example |
|---|---|---|
| Sitelink | Extra links | “Shop Men’s”, “Shop Women’s”, “Sale” |
| Callout | Short highlights | “Free Shipping”, “24/7 Support” |
| Call | Phone number | 📞 1-800-555-SHOES |
| Location | Store address | 📍 123 Main St (2 miles away) |
| Price | Product prices | “Running Shoes from $49” |
| Structured Snippet | Categories | “Brands: Nike, Adidas, Puma” |
Before vs After Extensions
Without Extensions:
Buy Running Shoes | ShoeStore.com
Great selection of running shoes.
With Extensions:
Buy Running Shoes | ShoeStore.com
Great selection of running shoes.
📞 Call Now | 📍 2 Miles Away
Shop Men's - Shop Women's - Sale Items - New Arrivals
✓ Free Shipping ✓ Free Returns ✓ 24/7 Support
Same ad, but now it’s 3x bigger and gets MORE clicks!
graph TD A[Basic Ad] --> B[Add Extensions] B --> C[Sitelinks] B --> D[Callouts] B --> E[Location] B --> F[Call Button] C --> G[🚀 BIGGER AD<br>MORE CLICKS!] D --> G E --> G F --> G
Audience Targeting in Google Ads
Instead of targeting keywords, you can target PEOPLE!
Who Can You Target?
graph TD A[👥 AUDIENCE TARGETING] --> B[🔄 Remarketing<br>Past visitors] A --> C[🎯 In-Market<br>Active shoppers] A --> D[❤️ Affinity<br>Lifestyle interests] A --> E[📊 Demographics<br>Age, gender, income] A --> F[👀 Similar Audiences<br>Like your customers]
Targeting Options Explained
| Audience Type | Who They Are | Example |
|---|---|---|
| Remarketing | People who visited your site before | “Show ads to cart abandoners” |
| In-Market | Actively researching to buy | “People searching for running shoes this week” |
| Affinity | Long-term interests | “Fitness enthusiasts”, “Marathon runners” |
| Demographics | Age, gender, household income | “Women, 25-45, high income” |
| Similar/Lookalike | People like your customers | “Find more people like my buyers” |
Real Example: Shoe Store Targeting
| Campaign Goal | Audience Used | Strategy |
|---|---|---|
| Win back visitors | Remarketing | “Hey! You left shoes in your cart!” |
| Find new buyers | In-Market | Target people actively shopping for shoes |
| Build brand | Affinity | Target “health & fitness enthusiasts” |
| Premium products | Demographics | Target high-income households |
Combining Keywords + Audiences
Power Move: Use both together!
- Keyword: “running shoes”
- Audience: In-Market for Athletic Apparel
- Result: Your ad shows to people searching “running shoes” who are actively ready to buy!
Putting It All Together
Here’s how everything connects:
graph TD A[📝 Set Up Account] --> B[📁 Create Campaign] B --> C[📂 Create Ad Groups] C --> D[🔑 Add Keywords] D --> E[Choose Match Types] E --> F[Add Negative Keywords] C --> G[✍️ Write Ads] G --> H[Add Extensions] B --> I[👥 Set Audience Targeting] I --> J[🚀 LAUNCH!] H --> J F --> J J --> K{Monitor Quality Score} K --> L[Improve & Optimize]
Quick Reference Table
| Component | Purpose | Your Action |
|---|---|---|
| Account Structure | Organization | Set up campaigns → ad groups → ads |
| Keywords | Trigger your ads | Choose relevant search terms |
| Match Types | Control precision | Broad, phrase, or exact matching |
| Negative Keywords | Block waste | Add terms you DON’T want |
| Quality Score | Get better results | Make relevant ads & landing pages |
| Ad Rank | Win auctions | Improve Quality Score + smart bids |
| Extensions | Boost visibility | Add all relevant extensions |
| Audience Targeting | Reach right people | Layer audiences on campaigns |
You Did It! 🎉
You now understand the foundations of PPC advertising:
✅ PPC means you only pay when someone clicks ✅ Account structure keeps everything organized ✅ Quality Score is your report card (1-10) ✅ Ad Rank = Bid × Quality Score ✅ Match types control keyword precision ✅ Negative keywords save you money ✅ Extensions make your ads bigger (free!) ✅ Audience targeting reaches the right people
Remember the auction house! With great ads (high Quality Score), you can beat competitors who just throw money at the problem.
Now go build your first PPC campaign with confidence!