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Posts Tagged ‘PPC search’

Why Pay Per Click Search is Like Poker

Yesterday, I had a chat with someone who was asking me how my company aligned our goals with that of our clients with regard to Pay Per Click (PPC) Search Marketing. The first step is to establish what those goals are specifically and make sure that the client has at least a basic understanding of PPC metrics. Most people would assume that the clients goal is just to make more money. While this is usually the case, the road to profitability comes with establishing some benchmarks along the way. As these improve, the campaign will see profitability.

Here are three primary benchmarks to keep in mind.

1. Profitability. If it will cost $100 to get a customer and that customer makes a $25.00 purchase with no upside potential, then PPC is not going to work well for this client.

Research needs to be done in order that the client understands the cost of acquiring a client vs. the lifetime value of the customer.

Also, effective keyword research can help to discover lower cost keywords that might make an otherwise unworkable PPC campaign affordable.

2. Conversions. In relation to profitability, the challenge of increasing the conversions needs to be closely looked at. Anyone can set up a Pay Per Click account (like Google AdWords) and spend lots of money, but it takes an expert to effectively implement PPC and get high conversion rates that attract targeted customers that make buying decisions. This is where PPC is like Poker. It has been said that poker “takes a minute to learn and a lifetime to master.” Maybe a lifetime is a stretch for PPC, but if you have no successful track record with managing PPC, why would you think it made sense to gamble your hard earned money on it. Many companies (including our clients) have seen huge improvements in PPC profitability by hiring a professional to manage their PPC Search Marketing.

3. Tracking. Again, this might seem basic, but there are lots of methods to track the effectiveness of a Paid Search Campaign. For one, Google Analytics does a great job of allowing you to track clicks from your ad to a target destination on your web site such as a completed sales page. For those that have larger PPC budgets (in excess of $10,000 per month), it might make sense to employ another tracking tool in conjunction with Google Analytics to get more granular data.

The more closely you can track your sales to your PPC spending, the more accurately you can determine the return on investment (ROI) of your PPC campaign.

If you are considering running a PPC campaign and would like a complementary analysis, or if you are currently running a PPC campaign and want to see if there are any opportunities to improve your ROI, you can contact me at anthony(@) or 800-453-9290 to discuss how my team and I can help you accomplish your business goals. We have a solid PPC practice group, a 12 year track record with PPC, and currently serve clients spending from $300 per month to over $50,000 per month.

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