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Evaluating If PPC Advertising Is Right For Your Company

science-and-strategy

By Linda Reneau

Every business owner wants their business to succeed.  Everyone wishes that it were as simple as, “build it and they will come,” but the realities of operating a business today is that without a successful marketing campaign most businesses fail.  It doesn’t matter if the failing business provides a unique product or a much needed service, if the business is not able to be found by potential clients, the business will fail.  The days of opening a local business and servicing a small town are past.  The brick-and-mortar businesses of yesterday are doomed to fail if the digital storefronts of today are not drawing in potential clients as well.

The overwhelming problem that businesses face today is knowing how and where to invest their marketing budgets.  Just as there are many venues that brick-and-mortar businesses used yesterday, such as radio, newsprint, magazine, and television.  So, too, are there many different venues that digital storefronts use today, such as Pay-Per-Click advertising, Search Engine Optimization, and Social Media Marketing. Depending on your business model each and every one of these might be needed for the success of your company.  However, in this particular post we are going to focus on just Pay-Per-Click, known as PPC advertising.

science-and-strategy

PPC is a specific niche of online marketing where a company pays a search engine to list their website.  This is in additional to organic, or non-paid, rankings.  In Google it is easy to identify PPC ads because they have a beige background and are listed on the far right-hand column.  With PPC advertising, a company selects which specific key words they want to have their business listed for, and then every time a user clicks on their ad the company pays a fee to the search engine, hence the name, Pay Per Click, is derived.

PPC advertising presents several unique considerations for a business over that of Social Media Marketing, known as SMM, or Search Engine Optimization, SEO.  SEO is the process of focusing a website around a specific set of key words to rank organically in the search engines.  SMM is for brand building and is usually through social media sites such as Facebook, Twitter, and Google+.

The advantages of PPC advertising is that your business can get immediate traffic into your website, on keywords that you have selected.  The traffic is usually well qualified, depending on how well the ad was written.  The immediate disadvantage of PPC advertising is that every user that clicks on your ad, regardless of whether they buy from you or not, will cost you money.

To determine if PPC advertising is right for you, be sure to know your profit margins on your average sale, minus the cost of goods sold, the cost per click, and your websites conversion rate. Conversion rate is the percentage of users that purchase your goods or services in relation to the total traffic that visits your website.

If you have more questions about PPC, and if it would be a profitable venture for your company, please contact Netmark today.

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