Digital Marketing for Shopify stores 101 | Part 3

Essentials Guide PART 3

In previous Marketing Essentials 101 Part I & II we got to understand the basics and terminology that can become overwhelming when starting to do your own digital marketing. After understanding the most important ways to place and how to create various types of ads, checking how to position them in the search engine, we are now going to discuss the possibilities for placing ads and paying for them.  Always keeping in mind that your strategy (please refer to Marketing Essentials 101 Part I ) and your Search Engine  (please refer to Marketing Essentials 101 Part II) are set accordingly. Otherwise you will just flush money down the drain and might not generate any traffic and of course, no conversions.


How Paid Search Works?

Every time there is an ad spot on a search engine results page (SERP) such as google or bing search, an instantaneous auction takes place for the keyword that was generated in that search. A combination of multiple factors which includes a bid amount and the quality of the ad (SEO), decide the winner who will appear in the top spot of the SERP, then an auction is triggered based on keywords that are bid on by advertisers. The ads that win the auction then appear on the search engine results page. These bid auctions are the core of PPC and every paid marketing strategy.


Advertisers become involved in the biding process by using accounts on platforms like Google Ads to set up their ads and determine where and when they would like those ads to appear. Then accounts are split into campaigns for ease of management and reporting of different locations, product types, or other useful categorization that are relevant and essential for gathering data for future marketing strategies. With Google Ads and Google Analytics you can see where your audiences are located, their interests, the device they used to find you, their other interests, their behaviour whilst navigating your page, their age, demographics and gender and of course the time and call to action they clicked on that allowed them to land in your page.

The most important Paid Search Methods are:

1. What is PPC? How you use it?

As we mentioned before PPC stands for PAY PER CLICK. This means that advertisers pay a fee each time one of their ads is clicked. This is how one can buy visits to your site, rather than attempting to “earn” those visits organically. Search engine advertising is one of the most popular forms of PPC allowing advertisers to bid for ad placement in a search engine’s sponsored links when someone searches on a keyword that is related to their business offering. In our case, for example, if we bid on the keyword “What is PPC,” this blog might show up in the very top spot on the Google results page.

The goal of a PPC ad is to lead the person viewing to generate a call to action and therefore to click through to the advertiser’s website or app, 

having the advantage where that visitor can complete a valuable action, such as purchasing a product, subscribing to your newsletter or following your social media, it all depends on the ad you are paying. By making correct use of your keywords and applying them to your Search engine you will be able to display ads that are relevant to what users and your specific target audience are searching for.


Thanks to Advertising services like Google Ads and Bing this can be performed regionally, demographically or by interests and topics. These operations are done with real-time bidding (RTB), where advertising inventory is sold in a private automated auction using real-time data.

Now, PCM stands for COST PER THOUSAND or Cost Per Mille. The “M” in CPM represents the word “mille,” which is Latin for “thousands.” And it refers to a marketing term used to denote the price of 1,000 advertisement impressions on one webpage. Let’s say if a website publisher charges $2.00 CPM, that means an advertiser must pay $2.00 for every 1,000 impressions of its ad.

2. What about PCM?

CPM is the most common method for pricing web ads. Advertisers frequently measure the success of a CPM campaign by its click-through rate (CTR), which is the percentage of people who saw your ad and clicked on it. For example, an advertisement that receives two clicks for every 100 impressions has a 2% CTR. And one must keep in mind that your advertisement’s success should not be measured on CTR alone, because as long as an audience views your ads you will still have a measurable campaign based on impact rather than traffic. There has to be a balance between your reach and your conversions to obtain successful results both in the short and long term. CPM represents one of several methods used to price website ads. Some of the most tangible advantages are the guarantee that you will deliver a fixed number of impressions to reach your target audience while being able to control how much exactly your cost per thousand impressions will cost. Therefore, making it easy to calculate whilst staying in your budget an estimation of reach and impressions within your growth goals.

3. What is CPA?

CPA stands for COST PER ACTION, or also pay per acquisition (PPA) is an online advertising pricing model where the advertiser pays for a specified acquisition. Some advertisers often consider CPA the optimal way to buy online advertising, because you as the advertiser will only pay for the ad when the desired acquisition has occurred. Think of it as an affiliate model where a commission is paid when a user takes a specific action. The desired acquisition to be performed is determined by the advertiser. Also, PAY PER DOWNLOAD (PPD) is another form of CPA where the user completes an action to download a digital content such as apps, digital media, and other files. The actions can include completing surveys or answering quiz in order to generate revenue from a third-party advertiser.


In affiliate marketing, this acquisition means that advertisers only pay the affiliates for leads that result in a desired planned action such as a purchase via online shopping cart.  This allows the advertiser to lower their risks because they know in advance that they will not have to pay for bad referrals, whilst encouraging the affiliate to send good potential referrals. A related term, effective cost per action (eCPA), is used to measure the effectiveness of advertising inventory purchased (physical products have 2-10x more hands in the pot (distributors, warehouses, suppliers etc.) and then tell the advertiser what they would have paid if they had purchased that same advertisement inventory via a cost per click, cost per impression, or cost per thousand basis.

“If the advertiser is purchasing inventory with a CPA target, instead of paying per action at a fixed rate, the goal of the effective CPA (eCPA) should always be below the maximum CPA. As described by Yang’s Law, eCPA”

The CPA tactic is a simple concept once understand how it works and the parts involved: There has to be a lead and the lead action can be anything from making a purchase to providing a quote, a video, or filling out forms. Unlike other marketing strategies where you pay to advertise your product/brand/service with no guarantee of sales, CPA marketing allows you to only pay after the sale occurs in accordance to your parameters and at a rate you determine.  The CPA affiliates are paid a set fee each time a referred visitor completes the action or offer, we don’t advertise other platforms but with a simple google search about CAP affiliates will allow you to find the correct niche, network, publisher or affiliation for your brand.

This is quite a vast, long and ever changing field. Hopefully after reading all three parts of this blog you can now have a real understanding on how to create an effective marketing strategy that fits your budget, your product/service and generates traffic, conversions and the highest SEO ranks in the search engine.

Lots of names, lots of different options but once we understand them all, it is easier to see the wider scope and we finally get to notice that between all the technical marketing gibberish. These marketing strategies make a lot of sense and are not that hard to apply, go ahead and integrate strategies, implemented the best plan and create your campaign, monitor it and watch your business grow.


Get started now, create stunning video ads that will boost your sales, create trust in your brand, engage your audience and expand your business with the Octovid Player Video Ad Creator.

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