Wednesday, July 2, 2008

PPC - Strengths, Limitations and when to use it

 

Defining PPC:
Pay per click (PPC) advertising allows your business to advertise your services on the Internet search engines or on websites related to your business. For pay per click campaigns the only time you pay is when an online customer clicks on your ad and visits your web site while searching for some products or services.
Strengths and Limitations of PPC:
Strengths:
Simple and Speed:
It's easy to set up a PPC campaign and drive traffic to your web site in a quick time, as all you need is the ability to bid on the targeted keywords.
Multiple Ads:
There is no limit to the number of keywords in the ad group and doesn't require additional money to add additional keywords to the bidding keywords list. It makes easy to target more number of keywords and makes you benefit out of placing multiple ads.
Requires no changes:
It requires no changes to the content of the website to obtain top position than just a higher bid amount. It will work for any site, regardless of age and quality of the content. High conversion rate can be achieved by working on landing page optimization.
Targeted advertising:
We can target specific geographic location by making our ads to display in those targeted areas where our prospective customers are located. It is also easy to measure the effectiveness by calculating click through rate and conversion rates.
Limitations:
Click fraud:
We cannot guarantee that all clicks on your ad were made by the targeted visitors, as there may be the clicks by the competitors to increase your advertising costs. Click fraud also happens when an online user clicks on an ad without the intention of visiting the website to look for products or services you are offering.
Bidding War:
You will be on top of the sponsored listings as long as your bid is higher than competitors and therefore it will not guarantee that your competitor will not bid higher than you. So once your competitor likely to pay higher amount than you then its easy for you to loose your rank.
Each click makes you pay:
You have to pay for each click on your ad regardless of conversion rate. So therefore it is necessary to constantly refine your keyword list and allocating your budget accordingly.
Short-term benefits:
The results achieved by PPC will benefit you for a short time only, as they do not require improvements to the websites, and therefore do not enhance your site for long-term visibility.
When to use PPC:
PPC is most suitable for
· For new websites or for short-term promotions.
· For creating brand awareness in the market.
· High competitive keywords, for which high ranking through SEO is difficult.
· To test keywords, for optimizing the website.

Marvist is an Professionally managed Internet advertising agency providing Affordable SEO, ppc management and web analytic services to help companies to increase online sales and improve their profitability. Marvist was founded in 2005 and has been rapidly growing since then and has clients now in 11 countries including USA, Canada, UK, Spain, Japan, Australia and New Zealand.

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