Losing Money on PPC and Growing Sales

Numerous marketers view pay-per-click advertising only as a strategy for direct response marketing, because of fully transparent metrics, including conversion rates, cost per click, cost of customer acquisition, etc. What is often required in this strategy is the value in engaging with website visitors, even if they do not directly convert from a sponsored Adwords placement.

Taking Branding Into Consideration

It seems paradoxical to think this way, however losing money on PPC advertising can be a sophisticated plan. Pay-per-click support branding initiatives by boosting website visibility. Primarily think about the real estate on a SERP (search engine results page). Users understandably tend to discover considerably more ads than they do organic search results.

Pay-per-click ad example is actually effective, many marketers worry it cannibalizes clicks to our organic search result, because a lot of brand names go uncontested. However, that’s short-sighted point of view. You would be amazed by how much more value search marketers obtain from branded pay-per-click ads.

Even if you realize that your branded search term cost you more than you have planned, with no doubt, continue to waste money at it, because doing this way you make sure that your competitors have fewer opportunities to steal market share.

A Multi-Sector Approach

Opposed to Marketing 101, Pay-per-click can serve as several touch points. Moreover, it is a lot of help when it is a part of a multi-channel strategy. It’s quite interesting that Pay-per-click feeds SEO conversions because when users search your business and related items again, they will probably convert. Sometimes, the synergy between the 2 can be immensely powerful.

For example, let us take a case study by Melissa Mackey from Search Engine Watch. Melissa Mackey describes a situation, where an anonymous B2B e-commerce company tested Pay-per-click advertising to boost sales. After 10 weeks, the site saw a 17% increase in website visits, but, more importantly, a 136% leap in sales. Of course, Pay-per-click was not the site’s sole marketing channel. That said, Mackey dives deeper into the numbers to reveal the true value of Pay-per-click on sales. She says,

We found purchases that were touched at some point by Pay-per-click had a 21% higher average sale than those not influenced by Pay-per-click.

The advantage of such a diversified approach to marketing is that although certain channels may seem like “loss categories”, your overall marketing performance can skyrocket.

To ensure you make the most of your Pay-per-click campaigns and capture value from site visitors, reel them back in with retargeting, email marketing, or social media promotion.

As an advertiser, you may notice the direct response results from your Pay-per-click campaigns become increasingly unprofitable after you first introduce them. Over time, you will realize those losses are minor investments that ultimately support growth and sales in other areas of your business – making Pay-per-click entirely worth it.

Are you willing to lose money on a single marketing campaign to expand your overall company?

Info presented by Rankwinz