Does the Good Outweigh the Bad? What You Should Know About PPC

By Alexis Short, August 24, 2017

Maybe you’re familiar with pay per click advertising, or maybe you only know the phrase because you clicked on this article. Whether you’re an expert or a beginner, everyone should know the basics of pay per click along with the pros and cons.

By having a strong grasp on PPC, you’ll be able to determine whether it’s the right choice for your brand. Let’s get started.  

What Is PPC?

Pay per click advertising (PPC) is an advertising method in which advertisers pay a fee each time their advertisement is clicked. Search for a product or service (e.g. shoes) and you’ll likely see something like this:

Zappos.png

Here is a PPC ad for Zappos, a shoe company. By searching the keyword shoes, Zappos pops up.

How It Works

PPC ads appear on a search engine’s sponsored links. Each time an ad is clicked, the advertiser or business must pay a small fee to the search engine. Advertisers buy listings that appear when certain keywords associated with the advertiser are searched.

Advertisers acquire these listings through bidding at an auction, and every time a PPC ad is clicked, the advertiser pays the price that was bid. PPC ads will show up when someone searches a particular keyword linked with that ad.

Related Post: PPC 101: A Crash Course in Pay Per Click Advertising

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Source: Web Pros Media

Now that you know the basics of PPC, it’s time to break down the advantages and disadvantages of PPC advertising. PPC has its pros and cons. The question is: does the good outweigh the bad? I’ll let you decide.

The Advantages of PPC

You Only Pay When Someone Clicks. As an advertiser, you only pay when someone clicks your advertisement. Rather than simply paying one base price that doesn’t guarantee any number of clicks or views, PPC guarantees that you only pay when your ad is clicked. In comparison to other advertisement methods, PPC is the most cost effective.

You Set Your Maximum Bid. It’s easy to stay within in budget because you determine the maximum price you want to pay for your ad to appear when a keyword is searched.  

You Control Your ROI Potential. With your budget in check, you have the potential for a high ROI. For example, if the advertiser bids $1 per click, and a consumer clicks the advertisement and in turn purchases $100 worth of products, the business brings in more income than it’s spending on PPC fees.

Related Post: 3 Elements You Need to Improve Your PPC Campaign

You Can Drive Traffic. If you are looking for a fast way to increase your web traffic, PPC ads will attract more customers to your web page.

The Disadvantages of PPC

Clicks Don’t Guarantee Conversions. Clicks don’t always generate a sale. When a consumer clicks but doesn’t buy, the advertiser still owes a fee to the search engine for every click.

Related Post: PPC: How to Keep Customers for the Long Haul

Keywords Can Be Expensive. Bidding on a keyword can become expensive when two or more competitors get caught in a “bidding war.” Keywords that are more sought after will become more expensive as the competition drives up the bid price.

So, there you have it – the advantages and disadvantages of pay per click advertising in a nutshell…or blog post.

Final Thoughts

Now that we’ve overviewed PPC advertising and reviewed the advantages and disadvantages of the method, is PPC advertising the right choice for your business? Now that you know the basics and pros and cons of PPC, do you think it’s the right choice for your business? No pressure, take some time to think it over.  

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Source: Dopey Cowboy

I’ll leave that decision up to you. And if you do decide to take the plunge, happy PPC advertising! 

 

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Alexis Short

Alexis Short

Alexis Short is our former Content Marketing intern. She is a student at the University of Delaware, where she's pursuing a Bachelor of Arts in Political Science, and a minor in Legal Studies. More Articles by Alexis Short