Pay Per Click

Does Pay-Per-Click Work?

 

How can a small business compete with the big wolves?

That’s simple: you invest in digital marketing.

You know that if you want to remain relevant in this overly connected world, then you need to invest in proven online advertising techniques. And, you know that pay-per-click (PPC) advertising is one of the most efficient ways of growing a business. As a small business owner, you’ve probably seen others use PPC marketing with great results. But, while you recognize PPC advertising potential, you still have your doubts.

Another blog you may be interested in is: How do I manage my own adwords campaign

And, that’s understandable.

After all, if you don’t understand how PPC works, then you may just waste your marketing dollars on ineffective tactics.

That’s why we’ve written this article to show you how a PPC ad campaign can boost your conversion rate and help scale your business.

Let’s dive right in, shall we?

If you are serious about growing your business through digital marketing, then you’ve probably heard a lot about pay-per-click (PPC) advertising.

Stats That Show Why PPC Is a Great Investment

Should you invest in pay-per-click advertising? The numbers below paint an accurate picture regarding PPC’s effectiveness.

First things first, let’s look at how consumers tend to respond to a PPC campaign:

  • 86% of consumers go online to find local businesses
  • 72% of consumers would rather search on the Internet to find information about local companies than ask their friends or look through paper directories
  • 75% of the people that find useful information online are extremely likely to visit a physical store and make a purchase
  • 36% of mobile searches are linked to a location

These numbers should give you an accurate idea of how people search for a solution to their problems. Most of them go online to look for the products or services that could help solve their needs. If the results they get are relevant, then the chance that they’ll convert increases dramatically.

But, what makes prospects want to click on an ad instead of an organic search result?

  • 46% of searchers can’t distinguish between paid ads and the organic links in the search results page
  • 91% of people that watch social and mobile gaming video ads become customers
  • 69% of people that use Google on their phones to search for something will also use their devices to call a business

As you can see, the advantage of sponsored links is that they allow you to connect with an audience that has a real interest in your products or services. Moreover, you can reach out to them at the right time and with the right message. However, keep in mind the following stats to maximize the effectiveness of your PPC campaign:

  • 41% of all clicks go to the top three ads at the top of the search results page
  • The average click-through rate for an ad that that has the number one position is 8%. If that number seems low, then you should know that the average click-through rate for PPC ads is 2%
  • Sponsored links can increase brand awareness by 80%
  • Website visitors that come through PPC marketing campaigns are 50% more likely to become customers than organic visitors

Display Ads are not as popular as Search Ads but can also do a pretty good job, if you know how they work and how to put them to use. However, be careful, as they’re not so well-received, with as much as 33% of internet users finding them completely intolerable.

 

You can look at Google’s articel on how costs are calculated for pay per click campaigns.

Should You Invest in PPC?

As the numbers above show, PPC advertising can be an excellent way to put your business in front of your target audience and increase your bottom line. However, that doesn’t necessarily mean it’s the right fit for everyone.

Here’s why Google AdWords might not be the best idea for your business.

  • Click Prices

In the early days of Google AdWords, clicks had reasonable prices. But, as more and more search marketers understood the value of PPC advertising, the competition became fierce and getting a favorable ad placement has become a true battle.

It is not uncommon to pay $5 for a click that will get you a website visitor but may not necessarily transform that visitor into a customer. And prices can go up to even $60 per click for high-search volume keywords. It is impossible to have every visitor become a customer, and the more visitors you have instead of customers, the more you will have to pay Google. If you’ve tried AdWords and have noticed you’re paying more than you’re making a profit, then it may be time to consider other options.

  • Fierce Competition

With AdWords becoming more and more expensive, it’s also becoming increasingly difficult for small businesses and start-ups to use it. If you’re just starting out, there’s no way you can compete with large companies that have already built a name for themselves. Well-established businesses have massive advertising budgets and will take all the relevant keywords they need, raising the prices for them.

  • Mistakes Are Pricey

With AdWords, any mistake you make can burn a hole through your budget. Did you forget to turn off the ads? You probably just lost a few thousand dollars. Did you made a spelling error in your text ads or haven’t dedicated that much time to optimizing your landing pages? Then you can expect to see a decrease in your Quality Score.

It’s not for everyone, that’s for sure, but we still think that right now, Google AdWords campaigns are the most powerful tool available to attract customers, increase visibility and brand awareness and raise your profits. Why?

  • For every $1 spent on Google AdWords, companies make an average of $2 in revenue
  • 72% of AdWords marketers are planning on increasing their PPC budgets, which is a clear indicator of how important PPC is to generating ROI
  • 70% of all mobile searches result in users taking action within an hour

These are just a few facts that speak volumes about AdWords’ potential and why every business should give it a try before saying no.

With approximately 70% of all online searches coming from Google, it’s pretty clear that PPC marketing can become a great tool for any business as long as they understand how it works and know how to use it to their advantage.

If you want to play it safe and invest in PPC advertising without the risk of seeing your budget wasted on inefficient tactics, then working with a specialist may be the best solution. Contact Australian Internet Advertising today and let us tell you how we can take your business to the next level with Google AdWords.