Is PPC a worthwhile investment? Well, the answer is it depends. Pay Per Clicks ads are usually worth it because the visit generated brings in more than what the click is worth and the searcher is committed to buying. PPC ads are a great tool to grow a customer base because they are focused. The biggest factor in determining if PPC is a worthwhile investment is to understand how it works.
How PPC Works
As it states in the name, marketers pay for each click. The marketers bid the amount they are willing to pay for a keyword search. If a hundred people click on the PPC ad, then the marketers are charged the bid amount times a hundred. But this cost is for the opportunity for a certain slot.
What Makes PPC Worthwhile
PPC ads are worth the investment because they are fast and flexible and if a marketer is paying attention he or she can bargain for certain searches and get them for a steal. This results in highly targeted traffic being obtained at the fraction of the cost.
PPC works well in situations that result in direct response or selling a product or service online. Also, in the event of creating a good first impression, PPC works well in this arena.
When PPC is not Worthwhile
Costs can run up in a hurry due to egos creating bidding wars, bid inflation for highly-searched phrases, and imposed quality restrictions inflating prices. Another cost aspect to pay attention, is the lack of economies of scale, meaning the more traffic an ad generates the higher the costs. There is no bulk discount. Advertisers also may experience junk traffic and some PPC websites send PPC ads to the dark, sketchy alleys of the Internet where some ads have no business being.
Another case in which PPC ads are not worth it is in the case where a business’s true competition is hundreds of miles away. For example, a searcher types in “corn mazes near me” the first corn maze ranked is the only one in a hundred-mile radius. All search links will be for a single business in the area. A PPC ad is not worth it this case.
Ways to Make PPC a Good Investment
Highly ranked quality score PPC ads win the top slots. A good quality score can decrease costs as much as 20-30 percent. Ways exist to increase one’s quality score. Keywords, landing page copy, on-site usage metrics, and PPC ad metrics can either increase or decrease the bid necessary to gain a position.
Also, think “long-tail search terms.” For example, “restaurants near me” versus “Italian restaurants near me that do take out.” Be specific to stand out.
In closing, is PPC still worth it? The answer is yes as long a business understands their business and pays attention. It is possible to be out bided or someone drops out resulting in bids needing to be increased or decreased to keep a spot. Searches are continuously changing, making PPC best for the short term.