Chances are, you have already heard about the amazing ROI (Return-On-Investment) that PPC (Pay-Per-Click) advertising offers. A return of 200 percent or even higher is very likely with this type of advertising.
When PPC campaigns work, they work well. But what people don’t usually share with the public are those situations when these campaigns cause people to lose their entire investment without getting anything in return. As with anything else in the digital marketing business, it is highly recommended to be realistic from the very beginning about one’s chances of success.
So when does PPC work and when doesn’t it work?
- Pay-Per-Click usually works for online retailers and direct-response marketer. Sending a direct message to consumers is extremely effective for PPC campaigns, which is why direct-response marketers shouldn’t hesitate to invest in this type of advertising. The same philosophy applies to online retailers who are offering customers the products that they are looking to buy. Some examples of online retailers for whom PPC campaigns work like a charm are software companies, magazines, newspapers, information products sellers, etc.
- Pay-Per-Click will also work for brand advertisers. Brand advertisers are another type of marketers for whom PPC can work great. The main goal of brand advertisers is to create a psychological construct also known as a brand image that their audiences will become familiar with. Brand advertisers also look to influence the audiences’ future and present purchasing behavior. This image is usually a very effective way to determine potential customers to pay higher prices for products that are very cheap to make only because the products are branded. Although this concept might seem quite abstract, it is a normal phenomenon for brands to accumulate staggering value over time and PPC can accelerate this process.
Paid search also offers numerous other great advantages to brand advertisers. First, it is significantly cheaper than other forms of advertising. There is also a major difference in user intent. The majority of ads reach audiences through interrupted mechanisms like radio and TV commercials. Search engines, on the other hand, will display your brand only to those users who are very likely to be interested or need your products.
Last but not least, Pay-Per-Click Ads allow brand advertisers to have full control over the messages that they want to send to their audiences, allowing them to change these messages based on geography, culture, age, user intent, etc.
Why Pay-Per-Click May Not Be the Right Choice for You
There are several reasons why PPC campaigns might not be a good match for you. The most common reason is the fact that many advertisers are not able to control and manage their PPC campaigns properly. In order to turn a profit, PPC campaigns require a lot of attention on the part of the advertiser. Other often encountered reasons why a PPC campaign will fail are lack of campaign tracking, businesses that are out of the advertiser’s control, the products are seldom searched for online, etc.