What is the difference between PPC and affiliate marketing?

Many people are familiar with Pay Per Click (PPC) as an online advertising method used by companies like Facebook, Amazon or Google. It’s also known as "pay-per-click" because advertisers only pay when someone clicks their ad. The advertiser pays the company hosting the advertisement, which then passes on some money to the person who clicked on the advertisement.

Affiliate Marketing has been around since the early 1990's but was popularized by websites such as Amazon and eBay. Today there are hundreds of different ways to earn income through affiliate marketing including blogging, eBooks, webinars, YouTube videos and even software tools. One type of affiliate marketing that many internet marketers do not think about is using Google AdWords to advertise your own product or service.

In this article I'll discuss whether you could use PPC advertising to market affiliate products and how much effort would be required. In the next few sections we'll look at the differences between affiliate marketing and PPC advertising, explain why many PPC affiliates fail and offer three tips to help you succeed if you decide to give it a try.

Is affiliate marketing a PPC?

Yes! There are several reasons why you might want to consider promoting affiliate products via PPC advertising. First off, it allows you to reach out to thousands more potential customers than you could ever hope to reach organically. Secondly, it gives you complete control over your ad campaigns so you don't need to rely on other companies' algorithms to get results. Finally, it provides instant feedback from real users so you can quickly adjust your campaign based on data rather than guesses.

The first problem with affiliate marketing is finding relevant keywords or phrases to target. If you're selling something that doesn't exist yet, you won't find any traffic coming back to your website. On top of that, you may never know if your product sells unless you've already sold all of your inventory before launching your site. With PPC advertising, however, you can target specific words related to whatever niche topic you choose. For example, if you were looking to sell weight loss supplements, you could set up your campaign targeting terms like “weight loss supplement reviews”, “lose 10 pounds fast”, “how to lose 5 lbs in two weeks” etc. You may not see immediate success due to competition, but having access to millions of potential consumers makes it possible to test new ideas without wasting time setting up shop.

Another benefit of using affiliate programs is they often provide you with free resources to build your brand and generate leads. These include landing pages, sales letters, video tutorials, guides and even social media profiles. When done correctly, these assets can turn into valuable long term revenue streams. To learn more about affiliate marketing check out our guide on How to Become an Internet Marketer - A Complete Beginner's Guide.

What does PPC mean in affiliate marketing?

Pay Per Click means paying each time someone clicks on one of your advertisements. It's very similar to traditional television commercials where viewers tune in just to watch 30 seconds of commercial content. Instead, you pay every time someone views your ad. While this sounds great, it comes with its share of problems.

First of all, you must have enough money left over after covering your costs to keep serving those ads until you hit your daily budget limit. Second, you have no idea who is clicking on them. Is it a child browsing his parents' computer? Or is it a bored college student checking out the latest memes on Reddit? Thirdly, you cannot track conversions (i.e. buying a product). Fourth, you cannot measure ROI (return on investment), making it impossible to calculate profits. And finally, if you run out of funds to serve additional ads you risk losing credibility with existing clients and alienating future prospects.

All of these issues make PPC extremely risky for small businesses trying to start a business online. But there are solutions to deal with these concerns. Let's take a closer look...

What is the difference between affiliate marketing and advertising?

Advertising is when a company tries to convince people to buy their goods and services directly. An affiliate program works differently. They act a lot like a broker working for multiple sellers instead of just one buyer. They match buyers and sellers together based on criteria. The seller gets compensated once a sale occurs. Many times, the commission is split among various parties involved in the transaction.

When searching for a suitable advertising channel, it's important to understand the differences between the methods. Here are 3 main factors to consider when deciding whether to go with PPC or affiliate programs:

1.) Target Audience: Are you reaching your intended audience? Do you have good conversion rates and/or high engagement rates? Can you prove that your targeted demographics actually visit your site?

2.) Conversion Rates: What percentage of visitors convert into actual sales? Did you achieve 100% conversion rate? If not, was it because your cost per acquisition was too expensive? Were you able to lower it? Was it simply a poor performing keyword?

3.) Cost per Acquisition: Which channels resulted in lower CPA? The lowest CPA usually indicates greater profitability. However, low CPA does not always equal higher earnings. Sometimes, it's better to stick with a higher CPA channel that still generates decent volume of sales.

4.) Payout Ratio: How profitable is your affiliate program compared to others? Does your payout ratio compare favorably against industry standards? The higher the payout ratio, the more likely you'll receive commissions from other affiliate partners.

5.) Earnings: Have you earned enough money to recoup your initial investment within 12 months? If not, did you invest wisely? Some investments require longer periods of time to return value while others yield little to nothing.

6.) Reputation Management: Did you protect your reputation as an affiliate partner? Did you handle disputes professionally and appropriately? Did you resolve customer complaints in a timely manner? Did you respond to negative comments positively?

7.) Time Frame: Will you be able to spend sufficient amount of time managing your account? Can you afford to devote full attention to the task? Are you willing to put forth the effort necessary to ensure a successful outcome?

8.) Risk & Return: What are the chances of succeeding? What is the expected return? Based on past performance, what are the risks associated with investing in your chosen channel?

9.) Future Growth Potential: What is the likelihood that you will grow your client base? How much growth is realistic given your current level of experience and skill?

10.: Competition: How competitive is your chosen field? How well established are competitors? How difficult is it to break into the space? Are there barriers preventing entry? Could you compete successfully against larger players in the same field?

11.): Support: Who is helping you along the way? Who should you contact if you encounter difficulties? Is support available 24 hours a day? Are you dealing with competent individuals capable of solving your problems?

12): Trustworthy Partners: Do you trust the integrity of your selected partners? Do you feel comfortable sharing your personal information and financial details with strangers?

13): Scalability: Would you prefer to manage smaller projects or large ones? Smaller tasks allow you to scale your efforts gradually and avoid burnout. Larger projects demand more time commitment and dedication.

14): Flexibility: Are you flexible in terms of location? Can you travel easily? Work remotely? Be open to change?

15): Branding: What kind of image do you want to portray? How do you wish to appear to the public?

16): Transparency: How transparent are your practices? Are you upfront and honest about everything? Do you disclose expenses and revenues?

17): Accountability: Do you accept responsibility for failures and successes alike? Do you hold yourself accountable to deadlines?

18): Customer Service: How responsive is your team when addressing questions and requests? How helpful are they in troubleshooting technical issues? Are they knowledgeable regarding your products and services? Do they respect privacy?

19): Communication: How frequently do you communicate with your team members? How effectively do they communicate with you? Do they follow instructions? Are they friendly and approachable?

20): Experience: How experienced are your team members? Do they have proven track records in your chosen area? Do they enjoy the job? Do they love being part of your organization?

21): Teamwork: How collaborative is your team? Do they function harmoniously? Do they encourage teamwork? Do they cooperate efficiently?

22): Professionalism: Do you treat everyone equally regardless of gender, race, age, religion or sexual orientation? Are you respectful towards others? Do you maintain confidentiality? Do you conduct yourself honorably?

23): Integrity: Do you practice ethical behavior? Do your actions align with your values? Do you strive to live life in accordance with your beliefs?

24): Values: Where do you draw inspiration from? Why do you believe certain things to be true? What drives you forward? What motivates you to push hard? What keeps you humble?

25): Passion: Is your passion contagious? Do you derive pleasure from your work?

The internet has changed the way we do business as well as how we interact with each other. It's no longer just about shopping online but also connecting people from all over the world. The only thing that holds us back from going global is lack of funds. However, this could change now that there are so many ways to earn money without touching your wallet. One such way is through affiliate marketing which involves promoting other peoples' products or services while earning commission off their sales. In fact, some experts even say that affiliate marketing is more profitable than traditional advertising methods like newspaper ads or TV commercials.

Paid adverts - known as Pay Per Click (or PPC) advertising - has become one of the best ways to advertise your product or service. You don't need to spend any cash because these advertisements cost nothing when they're displayed on websites where users search for information related to your product or service. These sites include Google, Bing, Yahoo!, Facebook, Twitter and YouTube among others. When someone clicks on an advertisement, you get paid depending on who clicked on your advert. For example, if you run an e-commerce site selling shoes, you may choose to display sponsored links on those shoe pages instead of displaying regular text content. If somebody decides to buy shoes from your website after clicking on your link, you'll receive a percentage of the sale price as compensation.

However, not everyone is comfortable using PPC campaigns to market his/her product or service. What makes things tricky is that PPC is different from affiliate marketing. To clear up the confusion, let's first take a look at what affiliate means in advertising.

What does affiliate mean in advertising?

Affiliate marketing is a form of digital advertising wherein you partner with another company to sell its products and earn commissions based on the amount of sales generated. There are two main categories of affiliates -- publishers and merchants. Publishers create webpages featuring links to merchant's websites and offer them space within their publications to post the links. Merchants then use those links to direct traffic to their own websites. Both parties are compensated upon completion of successful transactions.

In essence, affiliate marketing works very much like word-of-mouth promotion. People recommend businesses to their friends and family members. Some people might actually be paid for recommending certain brands and products. But nowadays, affiliate marketing doesn't necessarily require personal recommendations. With the rise of social media networks, companies now hire professional marketers who advertise their products via social media platforms.

So as you see, both forms of marketing involve creating a relationship between two entities. And since PPC advertising is essentially a type of affiliate marketing, it should come as no surprise that they are similar. They differ mainly in terms of payment method. While PPC pays you a fee every time someone clicks on an advertisement, affiliate marketing compensates you for referrals. So basically, if someone buys something from your link, you get paid regardless of whether he bought the item directly or indirectly.

There are several advantages to being an affiliate marketer compared to a publisher. Here are few reasons why:

1.  You don't need to invest anything into building relationships. All you need is a good Internet connection and a computer.

2.  With affiliate marketing, you can build passive income streams. Once you establish yourself as an authority in your niche, you can start getting residual revenue whenever visitors refer clients to you.

3.  While PPC requires constant monitoring, affiliate marketing allows you to rest easy knowing that your efforts won't go unnoticed. Besides, having multiple streams of income helps prevent burnout.

4.  It's easier to scale your operations thanks to automation tools.

5.   Unlike PPC, affiliate marketing gives you full control over the customer acquisition process. You decide who gets exposed to your message and how often.

6.  If you want to test out different offers, you can easily switch advertisers without worrying about losing existing customers.

7.  You can save costs by outsourcing the tasks involved in managing your account.

8.  And lastly, affiliate marketing provides better flexibility with respect to timing. Since you don't have to wait until your ad campaign launches before starting making money, you can begin generating profits right away. Plus, unlike PPC which needs immediate response, affiliate marketing takes time to mature. The reason behind this is simply that you must develop trust with potential buyers before they'll turn into paying customers.

What are the three types of PPC?

PPC stands for "Pay Per Click" and refers to pay-per-click advertising campaigns. Most major search engines like Google, Bing and Yandex allow anyone to submit their own ad copy for review. After approval, your ad will appear in relevant searches according to keywords entered by searchers. The higher your position in organic results, the more likely your ad will show up. As expected, the higher your rank, the greater chance your ad will convert.

Depending on who places your ad, you can charge anywhere from $0.10 to $40+ per click. On top of that, you can customize bids to target specific audiences. Depending on how competitive your keyword is, you can bid less if your competitor is bidding more. Or vice versa. Bidding too low will result in lower rankings and fewer conversions. Too high though, and you risk appearing irrelevant to your audience.

Here are the three types of PPC:

1.  Display Ads

These ads appear within search engine results page (SERPs). Display ads usually feature images, videos, animations and rich snippets that help draw attention to particular features of a given webpage.

2.  Search Network Advertising

This type of PPC uses search engines like Google, Bing and Yandex to place ads within non-search results pages. Unlike SERP ads, Search Network ads aren't featured prominently in front of users looking for answers. Instead, they appear below the fold and in smaller font size.

3.  Social Media Ads

Like traditional display ads, Social Media Ads also appear within non-search results pages. However, unlike SERP ads, they are placed above the fold and larger fonts.

What are the types of PPC?

As mentioned earlier, PPC consists of three kinds of ads -- Display Ads, Search Network Ads and Social Media Ads. Each kind comes with its unique set of pros and cons. Below are brief descriptions of each:

•  Display Ads

Ads shown within SERPs typically consist of static banner, image, video and animated GIF formats. They tend to occupy the majority of available real estate on screen. However, they are generally small in size and thus difficult to read unless viewed from close range.

•  Search Network Ads

Similar to SERP ads, Search Network ads appear underneath content rather than being featured prominently in front of users browsing the web. Like SERP ads, Search Network ads also come in various sizes. Their placement on SERPs depends on how popular the corresponding keyword is. For instance, ads ranking towards the bottom of SERPs are positioned closer to the left side whereas those near the middle or right sides are further down.

•  Social Media Ads

Like SERP ads, Social Media Ads also appear beneath content rather than occupying prominent positions on SERPs. Like SERP ads, they also come in different sizes. Unlike SERP ads however, they are placed above content rather than below it. Also unlike SERP ads, they rarely contain large buttons inviting viewers to click on them. Instead, they feature short text messages encouraging readers to share posts on social media channels like Facebook or Instagram.

What is Amazon PPC?

Amazon is arguably the biggest player in the online retail industry. Its marketplace alone accounts for 40% of total US eCommerce sales. That's why it's no wonder that so many people try to drive traffic to Amazon by placing PPC ads on various platforms including Facebook, Pinterest, Tumblr and Twitter.

But what exactly is Amazon PPC? Well, Amazon PPC is a type of PPC that targets consumers searching for items sold on Amazon.com. You can find Amazon PPC ads in SERPs, search results pages and mobile apps.

How do I know if my PPC campaign is working?

To answer this question, you'll probably need to measure conversion rates. Conversion rate measures the number of leads converted into actual purchases made. A lead is usually defined as someone who visits your landing page. Your goal is to increase the number of leads converting.

Since PPC ads generate instant rewards, tracking conversion rates isn't always straightforward. Sometimes, the success of your campaign hinges on variables beyond your control. For example, sometimes people visit your landing page without buying anything. Other times, they end up purchasing goods even though they didn't click through your ad.

To ensure accurate data collection, you'll either need to track individual user activity on your website or install cookies that automatically log user behavior. Then, you can analyze trends to determine which elements of your ad design worked and which ones failed.

Conclusion

PPC stands for "pay-per-click". It means paying each time someone clicks your ad in search engine results. The cost is usually determined by how good your keyword phrase matches up with the terms people type into search engines like Google or Bing. In this way, PPC advertising works similarly to traditional SEO (search engine optimization) -- though there are specific differences as well.

The main advantage of PPC over other forms of online advertising is its ability to target users based on their interests, rather than just keywords they might enter into a search bar. However, if done incorrectly, PPC can also be quite expensive. If you're looking for more information about PPC advertising, read our guide on how to get started with PPC.

In this post we'll explain what PPC actually entails, so you know whether it's worth pursuing at all. We'll also discuss some of the major challenges involved when trying to succeed at PPC affiliate marketing. Finally, we'll present an overview of different kinds of PPC campaigns available through various networks and sites.

What are the three R's of PPC?

To understand the basics behind PPC, it helps to first look at the basic components of any advertisement campaign. Here are the three essential steps:

Research - You need to do research before launching a campaign. Find out who your audience is, where they hang out online, and which words people use to describe themselves. These details will help determine which phrases to include in your ad copy.

Writing - Once you've researched your audience, the next step is writing your ad text. Make sure it has high relevance to them, but not too much so that it sounds spammy. Be careful not to write something that could potentially hurt your business reputation.

Reviewing - After you've written your ad, test it to see how effective it is. Pay attention to things like CTR (clicks-to-views), CPC (cost-per-click), CPA (Cost Per Acquisition), etc. Review these metrics regularly to find ways to improve your performance, or to identify problems that may prevent you from succeeding.

As you can probably tell, PPC isn't easy. Success requires constant analysis and testing, both on your own end and on the part of potential customers. There are many factors outside of your control that affect the success of your campaign. For example, traffic patterns change every day, meaning one week you receive hundreds of visitors interested in your product while another week only receives a few inquiries.

You can mitigate certain risks by finding niche markets with similar characteristics to yours, since these tend to attract similar audiences. But even then, competition among advertisers tends to increase throughout the year, making it difficult to maintain consistent profitability. That said, successful PPC marketers often report earning six figure incomes within their first couple years.

If you're thinking about getting into PPC advertising, keep reading below to learn about the different categories of PPC ads.

What kind of marketing is PPC?

There are basically two types of PPC campaigns: display and contextual. Display advertisements appear alongside organic listings in search result pages. Contextual ads show up whenever a user visits a site.

Display Ads

Display ads typically consist of banner ads, interstitials, popups, and video ads. They take up space directly above or beside organic search results, and sometimes take up half the page. Because of this, they can provide valuable exposure to new users without requiring them to visit your website first.

They aren't always very engaging, however. Many users simply ignore them because they don't want to waste time watching videos or scrolling down long lists of links. Others might feel uncomfortable clicking on random banners or seeing ads that interrupt their browsing experience.

Because of the low engagement rates associated with traditional display ads, many companies prefer using contextual ads instead.

Contextual Ads

These ads link back to a particular webpage, such as a landing page or blog post. When a visitor lands on that page, she sees an ad relevant to her current activity. Some examples are sponsored posts, sidebar widgets, and content recommendations.

This method provides higher conversion rates due to increased relevancy. Visitors are less likely to dismiss a contextual ad because it feels natural and doesn't disrupt their flow. Plus, contextual ads are generally far better performing than those found in traditional search results.

What are the two types of PPC?

Most PPC campaigns fall under either of the following two broad categories:

1. Search Engine Advertising - Ads displayed on top of search results.

2. Social Media Marketing - Ads served via social media platforms like Facebook, Twitter, Pinterest, Reddit, Instagram, etc.

Both of these methods offer unique advantages depending on your goals. Let's talk briefly about each category:

Search Engine Advertising

Advertisers choose to place their ads on search engine results pages because they can reach a large number of eyeballs quickly. Most people searching for goods and services turn to popular search engines like Google, Yahoo!, Baidu, Bing, and Yandex to seek answers. By placing ads on SERPs, you can effectively capture these searchers' attention right away.

However, because PPC ads are placed alongside normal search results, they compete with regular searches for visibility. To stand out against competitors, you must optimize your campaign for highly competitive keywords. Even if you manage to get your ad listed in front of thousands of potential buyers, it won't necessarily convert well. Unless you have a strong brand name or already have a solid customer base, you should avoid PPC unless absolutely necessary.

Social Network Marketing

When used correctly, social media advertising can generate huge amounts of leads. As mentioned earlier, these ads are shown to users wherever they happen to go online. As a result, they can reach a wide range of demographics, including younger generations who spend a lot of time on social networks.

Though it seems promising, there are several drawbacks to consider. First, social media advertising relies heavily on trust and credibility. People don't buy from strangers or businesses they haven't heard of before. Consequently, you must build up a positive image and establish yourself as a reliable source of information if you hope to earn sales. Second, unlike traditional paid advertising, social media advertising costs money regardless of conversions. Third, you must invest time and effort in crafting compelling messages and keeping tabs on follower growth.

What are the two types of ads?

Now let's dive deeper into individual types of PPC ads. Click on any of the images below to view larger versions.

Google AdWords

One of the biggest players in the industry, Google AdWords offers a robust suite of tools for creating personalized campaigns. With AdWords, advertisers bid on keywords related to their products and services, and pay only when someone clicks on the ad.

Here are some key features of this service:

Pay per click -- Users pay each time their ad gets clicked.

Targeted placements -- Your ads appear only on websites matching criteria you specify.

Customized creatives -- You design your ads with custom graphics, videos, and callouts.

Keyword targeting -- You select the exact words people search for to match your ad copy.

Campaign management -- Track statistics on daily and weekly performance, along with overall ROI.

Facebook Ads

While Google dominates the market, Facebook is growing rapidly. Its massive size makes it ideal for reaching a wider variety of consumers. Like Google, Facebook allows advertisers to run targeted campaigns. Unlike Google, Facebook uses a bidding system called auction pricing.

Unlike Google, Facebook charges advertisers based on actual actions taken by users. Each action generates a small fee. So if 100 people watch an ad, 10 people click on it, and 90 people leave the page after viewing it, the advertiser pays $0.10.

Affiliates Earn Money Online

It's important to note that PPC can be performed by anyone. Whether you're selling physical items or digital downloads, you can advertise your offerings through paid channels such as Amazon Associates, eBay Partner Links, Commission Junction, LinkShare, Shopify, and others.

For instance, you might create an account with Amazon Associate Program and set up an affiliate webstore, allowing you to sell books, DVDs, music CDs, apparel, electronics, software, cosmetics, and more. Then, once a sale occurs, you would share the commission earned with Amazon.

SkimLinks

Another great option is SkimLinks. With this program, you sign up for free and submit articles or press releases containing links directed toward your chosen niches. Then, you add a snippet of code into your sites or blogs to direct readers to purchase your offered item(s).

Once again, the goal here is to drive traffic to your site and hopefully convince people to buy whatever you sell. While this technique works best with eBooks and courses, it can be applied to anything else.