Weighing the Pros and Cons
Pay Per Click (PPC) is an online marketing method wherein advertisers pay their host only when their ad is clicked by users – such ads are commonly found on search engines, advertising networks, and content sites like blogs. There are two main ways to determine the cost per click: 1.) Flat rate – the method where the advertiser and the publisher agree on a fixed amount for each click, and 2.) Bid-based – the method where the advertiser competes against other advertisers in a private auction and the highest bidder is awarded the spot (often keywords). Websites that make use of the PPC advertising strategy display an advertisement when the keyword/s a user enters on search engines matches the advertiser’s keywords list. In the case of content sites like blogs, such advertisements show up when they are relevant to the content published on the blog. These advertisements are called sponsored links or sponsored ads.
Looking at the surface, PPC advertising seems to be one of the best ways to get more traffic to your site in a short amount of time - especially if you have a good PPC advertising strategy. However, if you have not done sufficient study, it could mean more losses than gains. In order to make the best out of your PPC advertising strategy, you must accept that it is risky and that you have to plan carefully. Some criticisms to PPC advertising are:
· It can be too expensive, which is especially true in the case of bid-based PPC. There are advertisers who end up bidding too high on a particular keyword and not getting the potential return. There are also some PPC engines that automatically increase your bid amount to maintain your rank, which would make it easier for you to get carried away in your PPC campaign.
· It is more difficult to keep track of the results of PPC campaigns. There are tracking tools available online but they are not 100% accurate.
· Junk traffic. Keep in mind that PPC ads do not only show up on credible search engines like Google and Yahoo. It is highly possible that your listings would be included and generate clicks on the less credible search engines. You might get more clicks that way but it is unlikely that you will get more returns. Because of this, junk traffic is also another reason why it is hard to analyze the results of PPC campaigns.
· PPC advertising does not have a fair proportion. The more traffic you get, the higher your cost. This might not sound like a major downside but it is. Your cost per click remains constant but your overall cost increases. Considering the fact that not every click means a return, this is not really the ideal proportion.
Of course, when executed well, PPC advertising could be very beneficial for advertisers:
· PPC advertising is fast. You could gain more traffic the moment you place your ad and if you set aside a budget for PPC advertising, you could also get top placement on search engines. PPC advertising is so fast that it is highly possible for you to reach your target traffic within a few minutes of activating your ad.
· PPC advertising is the most controllable form of search engine placement. It would not require much effort to adjust your PPC campaign to fit the current marketing conditions. Compared to other forms of advertising which could take weeks or even months, PPC campaigns take only hours or days to adjust.
· Sponsored ads are a good way to attract viewers. Many viewers do prefer to click these and skip the other results because they gather the impression that advertisers who set aside ample budget for such ads have relevant and updated content.
· PPC advertising is agreeable to all parties involved. You could get top placement on the results page without damaging your relationship with search engines.
· PPC advertising could be a bargain. With the help of careful planning, you could avoid getting carried away in bidding for popular keywords and find lesser known and therefore cheaper ones instead.
With the good and bad points of PPC campaigns established, it is now a matter of finding the balance to determine when it is best to make use of this kind of advertising:
· Short-term campaigns. Unfortunately, SEO is not good enough at emphasizing the 4 crucial Ps that marketers consider important – product, price, place, and promotion. Since PPC advertising is a quick and easy way to get traffic, you could use it to inform your audience about your new products and services. One to two days of PPC campaigning should be enough to spread the word. Examples of short-term campaigns are those of seasonal products and special events.
· Online purchasing. There are several businesses that make it possible for customers to buy their products online. In such cases where every website viewer is a potential customer, it is practical to set aside a budget for PPC campaigns.
· Specific keywords. If you are thinking of a more long-term PPC campaign strategy, you could start by taking a closer look at your keywords list. If you do not have any specific ones, add and use them for your PPC campaign. Not only would it save you money and possibly lessen junk traffic, it would also get you more clicks.
Like any other means of advertising, PPC campaigning is flawed. It might sound great on the surface but if you do not analyze how it works, it could do you more harm than good. That is why it is important that while you are organizing your PPC campaigns, concentrate on how to convert customers instead of how to increase the number of clicks.
Somni Creative, Inc., rich media marketing professionals from Los Angeles, California, specialize in providing online customer acquisition services, such as Pay Per Click Advertising. Call us at (310) 6973199 or visit www.somnicreative.com.
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References:
Why Should You Outsource Your Pay-Per-Click Campaign to an Agency?