Pay Per Click Advertising
You might think of embarking on the Pay Per Click (PPC) marketing to make quick cash over the Internet. well, not that fast my friend. There are lots of insider Pay Per Click Advertising Best Tips that will help you save heaps of money on your advertising venture.
Okay, it’s not often that I pull the “Donald Trump” card and say that someone should be fired. But Road Runner Sports site should definitely give their internet marketing manager the boot. Why? Because he/she is wasting hundreds of dollars of their advertising budget each month. “How So?” you ask. Well, go to google.com and do a search for the keyword phrase “running shoes” and you’ll see that they’re always in the top 3 pay per click listings for that keyword phrase. But isn’t this a good thing? No, not really. That is, not when you’re probably paying upwards of $1.00 per click for that keyword phrase and you already have a #3 natural search ranking for the same term.
By having a top 3 PPC result along with a top 3 natural ranking, their essentially competing against themselves. Because people who click on their ppc add (which costs them money) would have likely arrived at their site anyhow due to their top 3 natural rankin. They are wasting a good chunk of their advertising budget. I tell my clients all the time, ”Don’t Compete Against Yourself!” Once you get a top natural ranking suspend your PPC campaigns on the keyword phrases that you’ve got natural rankings on.
But what about the traffic. Well, you’re gonna get the traffic anyway via your natural results. This doesn’t cost you a penny when someone clicks on that result. Why pay for traffic you’re likely to get anyhow. Traffic just for the sake of traffic is one mistake many beginning PPC marketers make. Traffic doesn’t make you money, sales do. So, if any business website had an Internet marketing manager that knew what he/she was doing, they could utilize their advertising budget better by setting up PPC campaigns on keyword phrases they don’t have a natural ranking for. After all, traffic doesn’t matter, profits matter. If you can reduce your advertising budget by $500 per month and still get the same amount of sales, you’ve just increased your profits. This should be the aim of any Internet marketing manager. Profits come before traffic any day of the week.
There may be plenty of business online, but unless you’re a well known brand, if you’re not being found on the major search engines, you really don’t exist. If I asked if you had enough money to compete against WalMart, most of you would say “No Way!” But with PPC marketing you can actually complete against big business. Here’s how and why:
The #1 PPC Spot Isn’t Always More Profitable
One major mistake that beginning PPC marketers make is focusing too much on “traffic” alone. While it’s true, the #1 PPC spot will bring you the most traffic, it’s not always the most profitable. This is because you’re paying more than your competitors per click (otherwise you wouldn’t have the #1 spot), and unless you convert that traffic into sales, it’s costing you money. Let me share a secret with you. In PPC marketing, traffic doesn’t matter. Yep, I said it….and I’ll say it again, “traffic doesn’t matter.” What matters is profits! You may have 1,000 visitors a month from your pay per click campaign, but if none of those visitors convert into sales, you’ve spent a bunch of money for nothing.
People like to feel like they’ve done their “homework” when they purchase online. They’re going to check out more than just the first site they see. Therefore, holding down positions 2-5 in a PPC campaign will bring you almost as many visitors, but cost you a lot less than being in the #1 spot, thus helping you maximize your profits. Why pay $1,000 per month for 100 sales when you can spend $500 for the same 100 sales? You can hold down the #2-5 PPC position and do just as well. So, save your money and stop bidding on the #1 position.
More Effectively Manage Your PPC Campaigns
As a small business you will likely be bidding on fewer keywords than a larger Fortune 500 company. This can actually be a benefit as you can more effectively manage your PPC campaign. Bidding on fewer keywords allows you to control your traffic flow, and to really “crunch” the numbers to make sure you’re turning a profit on the keywords you are bidding on. Many times, larger companies are bidding on so many keywords, they don’t have the ability or manpower to actually manage them effectively.
Here’s an example: If you do a search in Google.com on the phrase running shoes you’ll find that many times roadrunnersport comes up as the #1 spot in the sponsored ads, but they’re also #3 in the organic results. This means that they’re paying more than $1.00 per click for customers that would most likely see them anyways due to their #3 organic ranking. Essentially, they’re competing against themselves, and wasting a lot of money doing it. By bidding on fewer keywords, you can properly manage them to maximize your profits.
PPC Costs a Fraction of What Traditional Marketing Costs.
Unlike traditional advertising, ecommerce entrepreneurs can go head to head with the “big boys” using PPC marketing for a fraction of what it would cost through traditional marketing channels. Whether your unique selling proposition (USP) is customer service, a superior product, better warranty, better price, etc., leverage it, and sell it using PPC marketing. While you may not be able to bid on as many keywords as a Fortune 500 company, you can still compete on some of the keywords that will bring you qualified buyers, thus “stealing” customers away from the larger companies.
You can do this because it’s significantly less expensive to launch an effective PPC campaign that it is to launch other types of advertising campaigns. In fact, for less than $50 on most PPC search engines, you can open an account, start bidding on keywords, and immediately start wooing customers away from your competitors. With PPC, you can level the competitive playing field, and is the perfect way for you to start reaching new customers.
While your small eCommerce business may not be able to compete with larger companies offline, you can compete online with PPC marketing. Just remember that a successful PPC campaign requires more than just setting it up and forgetting about it. You have to have in place effective tracking tools that allow you to “crunch” the numbers and maximize your profits. If you don’t have the time to do this, you’re probably not ready to start a PPC campaign. However, if you do have the time to spend analyzing your PPC campaigns, PPC marketing can help you level the competitive playing field.