In a volatile business environment, companies are always looking for creative ways to advertise their products and services – without breaking their budget. Because of this, many advertising departments have turned to the internet to spread the word about their business. And that has caused online, pay-per-click advertising to soar in popularity. And while the Net and pay-per-click advertising can help boost awareness of your business, to be effective, marketers must know how to maximize the value of what they are spending on advertising.
What is Pay-Per-Click Advertising?
Pay-per-click advertising, often called PPC, is a third party advertising platform like Google Ads that posts advertisements alongside search engine results. Typically, you pay for these ads when they are clicked. The marketers bid on specific keywords, relevant to user searches, which increases the likelihood of the ad being clicked. Though PPC advertising is a good way to drive business traffic to your company’s website, the realiity is that it can only succeed if marketers bid on the correct keywords. So knowing which keywords are likely to cause customers to click on your advertisement is essential for success.
Maximizing PPC Marketing Budget
A recent study done by search software firm WordStream estimated that approximately 25 percent of advertising budgets are wasted on ineffective PPC marketing strategies. The study determined that this is the result of marketers not actively managing the campaigns, and therefore missing what keywords potential customers are likely to click on.
To remedy this, there were two suggestions for what marketers should be thinking about when budgeting and enacting an effective PPC campaign:
- Per-Lead Cost Compared to Other Channels – this thought approach requires marketers to stick to a budget and work towards getting the most value per dollar for their advertising techniques. Businesses looking to enact PPC campaigns should spend more on a keyword-specific PPC marketing approach which has been shown to draw customers in. Money should be spent on this campaign until it is costing equal to or less than leads generated through other channels such as phonebook advertising, Groupon or other platforms.
- Per-Lead Cost Compared to Value per Lead – marketers should research to determine how many leads must be drawn in to generate a sale, then by figuring the value of an average sale what you should be paying for each lead. Knowing this, advertisers should try to draw in as many leads as possible for equal to or less than the average cost per lead vs. profit from sale.
PPC campaigns can be incredibly effective, as Google and other search platforms serve billions of potential customers each day. The key is to find what keywords are likely to draw in customers to your specific business, and only spend money on those specific words rather than spreading the budget out over every potential keyword related to your services. Keyword searches are incredibly valuable, and knowing what your customers are searching for and likely to click on is the ultimate way to maximize your advertising budget.
As a next step, please read up on a primer we wrote on How Google Ads Works.
Contact WebTech Marketing Services, where expertise in business meets internet marketing strategies, for a free marketing analysis to help drive your bottom line.