Pay-per-click (PPC) is a well-known advertising strategy that is often considered the go-to method for advertisers to display their ads. PPC is a lucrative and cost-effective opportunity to drive traffic toward your website. However, it also has the potential to be one of the most significant budget draining marketing strategies. Therefore, it is important to understand the advantages and disadvantages of pay per click before you invest your time and resources towards it. Let’s take a look at some of these and whether PPC is right for your company.

What is Pay Per Click?

Pay-per-click is an online advertising model in which an advertiser only incurs a publishing fee each time their advertisement is clicked. PPC is primarily offered by search engines (e.g., Google, Yahoo) and social platforms (e.g., Facebook). Likely the most common type of PPC is search engine advertising, as it allows advertisers to pay for ad placement in a search engine’s sponsored links. Essentially, it allows you to directly display your paid ads among the search results on various search engines, such as Google, Yahoo and Bing. For example, if you were to bid on the keyword ‘Business Advisory’ our ad might show up at the top of the Google results page.

Now that you have a basic understanding of PPC, let’s take a look at a number of advantages and disadvantages of pay per click.

What are the Advantages of Pay Per Click?

1. Cost-effective

Unlike other forms of advertising, utilising PPC to drive traffic towards your website only requires a small upfront investment. This is because you only pay if a user clicks your ad and reaches your website. In addition, with PPC you have complete financial control, there is no minimum spend. Therefore, you have the ability to set your own budget. You choose how much you pay when someone clicks on your ad with no additional costs involved. It is a cost-effective advertising model that is effective in maximising your return on ad spend.

Significantly, pay per click advertising does not require much money to get started. Most search engines do not charge companies anything upfront to either set up an account or even begin a PPC campaign.

2. PPC campaign results are easily measurable

PPC allows you to track the metrics and effectiveness of your advertisements in real-time, and because of its simplicity, your results are easy to understand. For this reason, you can ascertain the exact return on investment and see down to how many people saw your ad, how many clicked, and how many performed the desired action. Thus, you can determine what is and what isn’t working with your ad, and make appropriate changes.

3. Generates traffic quickly

Generating traffic quickly has emerged as a major advantage of PPC. If you’ve experienced optimising and improving the visibility of your site with SEO, then you know how painfully slow it can be to see results. It should be noted that SEO still remains an effective strategy well worth investing in for the long run. However, whilst you’re waiting for your SEO to gain traction, PPC is a much more efficient strategy to capture all potential visitors searching your relevant keywords.

Fast results are owed to your ads being placed at the top of search results for important keywords. Regardless of whether users click on your link or not, you will have increased brand awareness. This means even if someone doesn’t click your ad at that point, they will have been exposed to your business and thus more likely to click one of your web links in the future.

4. Greater control over campaign

The final major advantage of PPC is that you will have greater control over your campaigns. This includes every aspect of your campaign – from the title and ad copy to the keywords and keyword matching option to apply, to the URL of the page you want users to send to. You can easily make small adjustments to your campaign at any point to maximise its effectiveness.

When employing PPC advertising, changing your ads to adapt to developments in your industry, or to meet the latest trends is paramount. Through PPC you will gain data on the performance of your ads, which you can utilise to make modifications, evaluate each campaign source separately, test new ideas, and gain a better idea of what works and what doesn’t.

Advantages and Disadvantages of Pay Per Click

What are the Disadvantages of Pay Per Click?

1. PPC ads require frequent optimisation

A PPC campaign will need optimising and tweaking to enhance your ads and maximise your spending. It can become quite a time-consuming task as you begin to change keywords, design new ads, write new copy and make changes to landing pages. Moreover, PPC is not a standalone activity. It requires coming up with a thorough strategy where once you get people to your site, you will need landing pages to encourage people to convert.

2. Clicks don’t equate to sales

This is one of the major cons of PPC advertising. Although your goal with PPC ads is for a customer to purchase a product or request a consultation, this won’t always be the case. You could be losing customers due to customers simply clicking your ad and then leaving your site. Therefore, it is important that your PPC campaign is consistently tracked and changes are made as required.

3. Requires extensive knowledge

Developing a successful PPC campaign takes time. You will need to conduct keyword research, identify the right audiences, review Google Analytics data, and constantly monitor and tweak campaigns. Like many forms of digital marketing, PPC is a skill that takes time to learn. This means even an experienced PPC advertiser will need some trial and error to find a strategy that works for your business. Without specialist knowledge, internal staff will need to be consistently trained and stay ahead of changes to paid search services.

4. Increasingly competitive

With the rate of advertised spending steadily increasing, there has been an inflation of the price of Google ads bidding and cost per click. Ultimately, the competition will only grow larger as the potential for profit grows smaller. If your business does not have a large ad spending budget, you may find yourself in a situation where you are spending more than you are gaining from clicks. While it is beneficial to get on the top of search results, you should be wary of spending more than you budgeted.

Is Pay Per Click right for your company?

In summary, there is a somewhat equal number of advantages and disadvantages of pay per click. However, this does not offset the lucrative pros PPC offers. Undoubtedly, there are other advertising strategies out there such as SEO. However, SEO can sometimes feel slow when compared with most other mediums of digital advertising. PPC shows results fast. Pay-per-click campaigns like Google Adwords and Facebook Paid Ads can increase site traffic and conversions. These are just some of the many benefits of paid search advertising.

Are you interested in increasing traffic with PPC? BUSINESSNAV is a certified Google Partner paid search advertising agency, so you can rest easy that your digital marketing is being handled by expert strategists. Contact us today via the form below: