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The Ultimate Business Case for PPC in 2018 and Beyond

Good PPC (Pay-Per-Click) advertising gets your business in front of a new audience. Here’s the business case for PPC and why it should be an essential part of your online marketing strategy.

So you've built a brilliant website that showcases your irresistible products and services. Now what? Your business is ready for 100s and 1,000s of people to visit and convert. Best of all, you've invested in SEO that means you'll be ranking soon enough for the most profitable keywords and generating organic traffic. But what happens now?  

With the long game in sight, you want to reach the right people at the right time. And FAST. That’s where pay-per-click (PPC) advertising comes in. 

With PPC, you can invest in ads on a variety of online platforms and search engines, such as Google, Bing, and Facebook.

As the name suggests, you pay your chosen platform a certain amount of money every time somebody clicks your advert.

The key is that you can target these ads to specific keywords, locations, and audience niches. That makes PPC a valuable addition to any online marketing strategy.

And the statistics back that assertion up.

Of course, that’s if you know what you’re doing.

Consider this as both a business case for PPC and an introduction to PPC. And every good introduction must start with an explanation.

 

What is PPC?

As mentioned, PPC stands for pay-per-click and it’s an advertising model that most search engines use. It allows you to pay a fee to attract traffic to your website.

You pay this fee whenever somebody clicks on the ad. Typically, this means that you create an advert and link it to either a landing page or a relevant page on your website.

From there, you assign the keywords that you want the ad to display for. You may even be able to assign specific locational data or other filters to ensure the ad only displays for certain audiences.

With all of that assigned, you then set a bid for the ad. This is typically the maximum amount that you’re willing to pay for a single click.

This bid, combined with several other factors, determines where your ad ranks alongside other ads that target the same keywords.

A poor ad with a low bid in a competitive industry won’t rank well. Conversely, it’s possible to bid too high and end up paying more than you should for each click.

Most search engines define their PPC ads from their organic results: 

screenshot google ads-161630-edited

This example from Google shows the small “Ad” market next to the ad. Other platforms may use different colours or other methods to distinguish their ads from their organic results. That’s the simple side of it. But creating an ad and funnelling money into it doesn’t always work out.

You need a defined PPC strategy if you’re going to achieve a good return on your investment.As a result, the typical PPC campaign undergoes a lot of tweaking.

You’ll start with an initial idea of the keywords and markets that you want to target.

As time goes on, you’ll adjust bids, find new keywords, and get rid of keywords and ads that don’t provide a good return. On top of that, you’re constantly competing against other advertisers for real estate.

That may make it sound like more effort than it’s worth.

But PPC is an essential part of your online marketing strategy.

 

The business case for PPC

Why Is It Important?

There are several reasons why PPC is an important part of your marketing strategy.

Just look at the numbers:

  • The average Click-Thru-Rate for an ad in the first position of a Google search is 7.94%. That’s 794 people per 10,000 searches. And remember, you only pay for the 794 clicks.
  • Wit Fitness enjoyed a 1,000% return on its AdWords investment with its Black Friday campaign.
  • People who see a Google Display Ad are 155% more likely to search specifically for your brand and product later on.
  • Here’s one for people who think they only need organic search. 89% of the traffic you get from PPC isn’t replaced by organic traffic of PPC ads are no longer displayed.
  • 70% of all mobile searches result in a customer action within one hour.
  • 52% of shoppers who interact with a PPC ad follow that interaction up with a phone call to the ad supplier.

 

Now, let’s dig a little deeper into the reasons why you need PPC.

 

Reason #1 – It’s a Cost-Effective Strategy

The idea of paying for online advertising may sound off-putting at first. You’re making a direct investment, often of thousands of dollars, just to show your ad.

But PPC offers proven returns. A good PPC campaign will help you to drive traffic to your site for relatively low bids.

And, as mentioned above, this traffic is more likely to convert into sales than the traffic that you get from organic sources.

You may pay for every click.

But those clicks come from an audience that you’ve targeted specifically because of their interest in your product or service.

 ppc statistics

Figure 2 - http://11fiftynine.co.uk/ppc/

 

Reason #2 – Search Ad Traffic Doesn’t Translate into Organic Traffic

You may assume that you don’t need PPC if you’ve already gotten good organic rankings in the search engines. But that’s not the case.

Google ran their own study on this.

They paused ads for a variety of searches to see if those who would have clicked the ads would instead click the organic search results.

They discovered that 89% of the traffic that comes from PPC ads does not translate to organic traffic once they’d paused the ads.

As a result, the business case for PPC is that organic search isn’t a replacement for it. In fact, most people who click on ads don’t click on the associated organic search result.

You need PPC alongside your organic results to maximise your exposure and traffic on search engines.

 

Reason #3 – It’s Perfect for Product Testing

Do you want to know if one of your products will actually sell? Good PPC can show you.

With PPC, you can drive instant traffic to a new product or service on your website.

Then, you can analyse the results. The results will reveal whether there’s actually any interest in the product. They may also highlight issues with your landing pages.

You may have a good product that’s not selling because the landing page isn’t optimised. Or, you may have a product that nobody’s interested in.

In that case, a small PPC campaign could save you money because it reveals that there’s no point investing in a long-term organic campaign for the product.

Simply put, a PPC campaign provides data that you can use to optimise your offering.

 

How Others Use PPC Successfully

We’re going to tackle this section from two angles. First, we’re going to show you how to create a solid PPC strategy that gets results.

Then, well look at one of the best PPC examples that demonstrates how an effective campaign produces results. 

 ppc diagram

Figure 3 - https://www.chunkofchange.com/2015/10/4-bits-of-ppc-pay-per-click-strategy-most-small-business-marketers-dont-know/

Let’s look at the strategy side first. Those who create great PPC campaigns tend to focus on the following aspects:

  • Building a High Quality Score. Quality score is a metric that many PPC platforms use to measure the quality of your ad. The better the ad, the higher the score. A high quality score may allow you to bid less for favourable ad rankings. Plus, it shows that your ad has a high amount of relevance to the page that you’re leading customers to.
  • Creating a Great Landing Page. You may have to most attractive ad copy in the world. But if you have a bad landing page, your traffic won’t convert. Focus on creating clear and professional landing pages that offer clear guidance to visitors on what they should do next. Also, ensure your ad copy matches the message of its associated landing page.
  • Creating Multiple Landing Pages. Even if you only have one product, you should still create several landing pages. This allows you to test your landing pages against each other to see what works and what doesn’t. If you only have one landing page, you can never know if your campaign’s achieving as much as it could.

 

That’s just a small sample of the techniques you can use to create a strong PPC strategy. Now, let’s look at an example of a company that has made PPC work for them.

 

The Boot Store Bonanza

An online boot store in the United States had already enjoyed considerable growth. They sold over 4,000 boots from over 30 major brands and had recently moved into a new facility.

The company already has a PPC campaign, which it was maxing out as far as possible. The budget wasn’t an issue for them as long as the campaign delivered profits.

However, they believed that they could get better results than they had. With an average sale price of $100 in a very competitive industry, they needed some optimisation to make their PPC strategy as effective as possible.

 

The Solution

The company’s new PPC team first analysed the business to get a better idea of what it offers.

That’s an essential aspect of good PPC, as not understanding the client means failing to deliver effective ads.

The company then divided the client’s products based on three categories:

  1. Price
  2. Demand
  3. Competition

After that came an intense keyword analysis that revealed thousands of keywords that the boot company wasn’t capitalising on.

The strategy then focused on using the above methods to achieve good ad rankings while driving the cost-per-click (CPC) of the ads down.

 

The End Result

This advanced PPC strategy resulted in the boot company enjoying a year-on-year sales improvement of 75%.

ppc success stories  

Figure 4 - http://www.cheasyy.com/ppc-success-stories/

But that wasn’t all. The intense keyword researched allowed for campaign optimisation that drove down the amount they paid for clicks. CPC dropped by over 14%, while the cost of a conversion dropped by over 40%. All of this with a 66% improvement in the number of conversions that the store enjoyed.

ppc sucess  

Figure 5 - http://www.cheasyy.com/ppc-success-stories/

In the end, an improved PPC campaign led to an increase in revenue, lower costs, and a much stronger return on the company’s investment.

 

The Final Word

It’s results like the above that make the best business case for PPC. With the right strategy, you can achieve a great return on your investment.But that’s not all.

A PPC campaign can build exposure among people who wouldn’t otherwise find you through organic search.

Plus, you can use PPC as an analytical tool so you can decide whether or not to invest in new products or services.

While not as quantifiable as the sales statistics, the value of such research cannot go understated.

Of course, it’s true that PPC requires investments of both time and money.

You’ll need to invest well in your ads to ensure they achieve top positioning.

And you’ll need to invest time to create attractive ads and great landing pages that actually convert visitors into customers.

But who can argue against doubling the money they invest into a marketing campaign?

That’s exactly what PPC offers.

 

Got Questions?

Pushing traffic towards a website is an extremely important part of any PPC strategy.

However, it’s ultimately the quality of that traffic that’s the true deciding factor. While poor PPC can boost the traffic numbers, it won’t provide a business with the quality that it needs to generate a return.

With all of this evidence, along with the many statistics shared in this article, you can now see just how vital PPC is for the modern business. But you might have questions? Or you might be wondering if PPC is the right choice for your business?

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If so, just go here to have a friendly no obligation chat with one of our gurus.

We’ll ask you a few questions and tell you honestly if PPC makes sense for your situation.

And if it doesn’t we’ll tell you that, too! 

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