PPC (which stands for pay-per-click), refers to those advertisements which generally appear in the small box to the right of search engine results. When considering whether or not to use PPC as your primary form of marketing, there are several things you should definitely take into account.
Because you are paying per click to your advertisement, PPC advertising can get very expensive very quickly. If you are paying $.12 per click, and 100 people click on your advertisements, you’ve already spent $12 before you have made a single cent. Due to this, PPC advertising is better suited to businesses with high cost products. By this I mean that if your product is over $100, and you are making $80 in profit for every sale, you wouldn’t even think twice about paying $12 for 100 potential customers.
We spoke with the AdWords consulting experts at Clicks Geek and they said if your profit margins are significantly lower than that, the cost of advertising could begin to eat into your profits. So decide whether or not the price that you would be paying per click is actually worth it.
In addition, if you know that your website content is not exactly of the highest quality, you should probably steer away from PPC.
Larger search engines like Google bear in mind not only how much you are willing to pay to have your ad displayed, but also the caliber of the content you provide. If you are giving users a lot of high quality information, Google will look upon your ad appreciatively, and might charge you less. If not, you might end up incurring higher costs.
What is the likelihood that a visitor to your website will actually end up buying your product or service? This is another important factor you have to think about. To determine this, go back over your past conversion statistics. Of every hundred people or so who visited your website, how many of them made you money?
Now, keep in mind that even if this percentage was extremely low, this does not mean that PPC is not the correct strategy for you. There are things that you can do to increase it. You will just have to be extremely careful in how you proceed with your advertising. If you structure your advertisement and your website in such a way that the landing page gets contact data, or appeals to your visitor’s decision-making process, you will undoubtedly get higher conversions.
One of the main reasons that visitors browse the internet for their purchases instead of visiting traditional brick-and-mortar stores is because they are looking for something that cannot be found in a traditional manner. They are looking for something specific.
If your product or service caters to a specific niche, PPC is a stellar advertising strategy. The users who search for niche keywords are often already prepared to make a purchase, and your advertisement will capture their attention right at the exact moment in which they are primed to buy.
Also, niche keywords are often a good deal cheaper than more common keywords, simply because there is not a large amount of competition for them.
Pay per click marketing is now one of the most common methods of marketing on the internet. Chances are, it could work incredibly well for your business. But because of the high potential costs, it is not something that you should rush into without careful consideration. Thinking through your advertising strategy thoroughly beforehand could mean the difference between the most successful advertising campaign your business has ever had, and flat out failure.