Use Data To Measure The Value Of PPC
From its inception in the early 2000s to now, the popularity of targeted pay per click (PPC) advertising has grown dramatically. Due to this popularity and success, many businesses not currently using the system are considering making the move. However, it is important to carefully consider the pros and cons of PPC — and how to create the ideal environment for a successful PPC campaign — before jumping on the bandwagon. When deciding whether or not to involve PPC in your marketing strategy, you must first thoroughly examine your existing business and marketing practices to maximize PPC’s potential.
1. Consider If You Need And Can Handle A Visibility Boost
If sales are slower than you’d like and your business doesn’t appear on the first page of a search engine’s results when you search for the product or service you’re promoting, you may want to consider PPC to increase your visibility. However, you should also make sure that you are prepared for the boost you may receive. Consider if your business can handle an influx of potential customers; if your sales team struggles to follow up with prospects consistently or you have limited resources to increase production, you may want to improve those aspects of your business before exposing it to more consumers. Drowning in more consumer interest than you can handle can be detrimental to your image — and your sales.
You should also consider if your website is ready to maximize the potential of an increase in traffic. Is the landing page aesthetically pleasing and easy to navigate? Have you been keeping up to date on the latest data-driven practices regarding web development to maximize your site’s potential? It is important that your landing page and overall website, not just your advertisement, results in conversions. If the site isn’t ready, it may be best to wait before implementing an intensive PPC strategy or you can lose the momentum built by your advertising.
2. Consider Your Target Market
In order to maximize your click-through rate (CTR), you must have a strong understanding of your audience. Users are more likely to click on ads targeted to them, so targeted PPC advertising has great potential. For instance, if your business thrives on local involvement, geotargeting your ads can positively impact your CTR (and, in turn, your conversions). However, if you’re interested in a broader campaign that doesn’t focus on a specific demographic, such as increasing general brand recognition, PPC may be less effective than a carefully-monitored cost per impression (CPI) campaign that does not target specific keywords or locations.
When considering your target market, you should also think about customer value. It’s important that a click on an ad — and the subsequent visit to your site — costs less than what the visit is worth. For instance, if you pay $2 per click for an advertisement but the product you’re selling is only $3, then paying for PPC is not helpful. However, if you pay $2 per click and the product is $600, the profit margin is much wider.
3. Consider Your Budget
One commonly touted benefit of PPC advertising is that it doesn’t necessarily cost much to start, as prices per click can be relatively low. However, it’s important to take care and avoid bidding wars for keywords if your budget is limited, as certain industries’ costs per click can be high. Although projecting a budget for PPC can be difficult, there are several blogs and other tools out there to help simplify the process.
When considering your budget, you should also factor in the cost of having an expert in PPC on your marketing team. PPC can be an involved strategy, as advertisers must keep up with the near-constant changes to Google AdWords, research and list the best keywords, develop campaigns, set up PPC landing pages, and consistently analyze account performance. This can get expensive, so make sure that you consider these costs before implementing PPC.
4. Consider The Possibility Of Combining Multiple Options
Implementing PPC into your marketing strategy should be combined with other efforts. Studies have shown that combining PPC with strong organic search strategies is ideal to maximize profits, as users see a “natural” high ranking on Google (by having your website come up on the first page of a search) as lending legitimacy to a sponsored PPC advertisement. Thoroughly weighing the pros and cons of PPC and CPI advertising and figuring out a combination that works best for your goals will result in the highest number of conversions.
When navigating the murky waters of PPC advertising, it is easy to get swept up in the strategy without first considering your specific business needs. By examining how PPC can affect your business, you can maximize the potential of a targeted audience.
Use Data To Measure The Value Of PPC