Is Pay-Per-Click Right For Your Business?

July 13, 2020

Is Pay Per Click Right For Your Business ?

Welcome back to Learning with Connexion Solutions. Today we will be talking the basics of pay per click advertising Is Pay-Per-Click Right For Your Business and the 5 things you need to think about when deciding if is right for you. Pay per click is one of the most effective ways to advertise today. It can be a little complicated so you may have heard some bad stories that steered you away from trying it.

We created this video to help you decide Is Pay-Per-Click Right For Your Business if pay per click is right for you. Today as business reopens you may be struggling to advertise online. Today businesses are having to rely more on digital advertising since face-to-face advertising, may not be an option at this time. If you are struggling with your digital marketing, this video will help you decide if pay per click is worth trying. Ask yourself the following five questions to learn if pay per click is something you can benefit from.

Number one. What is Pay Per Click and why do I need it?

Is Pay-Per-Click Right For Your Business Pay per click advertising is a form of Internet marketing where advertisers pay a fee each time one of their ads gets a click. When using pay per click you are literally buying visits to your site, the alternative is optimizing your website to ensure it ranks high on its own. Using the keywords your customers search when looking for your business is how you determine where to place ads. The reason why pay per click is successful is because customers turn to search engines when looking to make a purchase. Customers searching for products have the intention of buying, opposed to social media where they are looking through their feed and may come across an ad that sparks their interest. If you can benefit from website visits and can turn those visits into phone calls, inquiries and sales, pay per click can work for you.

Number two. Is Pay per click right for my business at this time?

Is Pay-Per-Click Right For Your Business If you have a website that successfully converts visitors into leads or customers, Pay per click can benefit you. Due to the many pieces that are needed to create a successful Pay per click campaign it will take time for you to begin seeing a return on investment. You will need to devote a fair amount of time to fine-tune the right audience, keywords and sales pages you direct traffic to. If you are looking for something that will generate results overnight. Or if you have a limited budget set aside for advertising. Pay per click may not be the best option for you at this time. If you have at least 100 dollars to spare on marketing every month there is no reason why you shouldn’t try.

Number three. How much does Pay Per Click cost and can I afford it?

Is Pay-Per-Click Right For Your Business The cost per click depends on the keywords you are using and the audience you are targeting. The cost per click is determined using a bid system that prices words based on the amount of money advertisers are willing to pay for them. If you are selling used cars the keywords associated to used cars will be more expensive since one customer can represent a big sale. Car dealers in your area will be willing to pay more for a click as opposed to keywords associated with less expensive products. If you can make more money than what you spend on clicks your business can afford pay per click advertising.

Number four. How do I know my pay per click campaign is profitable?

Is Pay-Per-Click Right For Your Business You can consider your PPC campaign profitable when you are making at least two dollars per every dollar you spend. Costs vary between industries however the average cost per click across all industries is 2 dollars and sixty-nine cents on the search network and fifty eight cents on the display network. You need to find the average cost per click and the average conversion rate for your industry. Your conversion rate will determine how many clicks you need to generate one sale. If you multiply the number of clicks you need by the cost per click you will discover the cost of acquisition. The cost of acquisition needs to be less than the profit you make from one sale in order to consider your campaign successful. How your profit compares to your cost of acquisition is really all that matters, it doesn’t matter if your cost per click is hundreds of dollars if your conversion rate and profit allow for it. If you pay a few cents per click and have a small closing rate you may end up not seeing a return on investment. That is why it’s important to run this formula before running away from expensive clicks or investing on inexpensive clicks just because they are inexpensive.

Is Pay-Per-Click Right For Your Business Number five. How can I improve my pay per click performance over time?

Is Pay-Per-Click Right For Your Business Taking into consideration the formula we discussed in number four you will find that increasing your conversion rate even by a few points can have a dramatic impact on your cost of acquisition. With that in mind you want to make sure your website is converting your clicks into leads and that you are following up with leads promptly. You also want to make sure that you are targeting your audience correctly. One common mistake is having a broad audience. If you do not specify the location of the area you provide service in, you will avoid paying for clicks from users who are not potential customers for you because of their location. This is a very common mistake and a big waste of money. Finally you want to constantly test various ads, monitor ad performance frequently so you can discontinue ads that aren’t performing and increase your budget on ads that are performing well.

These have been the five questions you need to ask yourself when considering if PPC advertising is right for your business. We are confident that these five questions will help you make the right decision for you. The information we discussed today is very basic. If you determine PPC is right for you there are more advanced learning videos we have created to help you reach your marketing goals. You can find these free resources on our website.

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