I am amazed at the number of people who run PPC ads who do not understand the principles at work.
Most people make the mistake of viewing their PPC ad cost as an expense. This is because they operate their PPC promotion program from the wrong perspective – they think of it as traditional brand advertising or even yellow page advertising. The typical thought process is along the lines of:
“OK someone is searching for XXXXXXX (insert the name of your product or service here). They are going to Google or Bing or Yahoo (I’m trying to be equitable here) this term and my PPC ad will be #1, they will click on the link, see what I am selling and then contact me to buy it.”
They look at PPC ads as a one time chance to bring in a new client
This is WRONG WRONG WRONG. It is simply not how it works.
Do you know how many people simply use the internet for research purposes before making a buying decision? What you need to do is develop a mechanism to integrate yourself into that research process so that even if they never visit your site again, they will still have a way of contacting you.
PPC advertising is a low cost way of building a prospect database……………an ASSET…………….your PPC costs are an investment in this asset, just like how you invest in an apartment building. You invest money up front with the hopes that the asset will generate a return on that investment in the near future.
But if all you are doing is throwing some PPC traffic at your home page, how do you plan to create that asset.
Lets see this misguided approach in action.
Say you happen to own a building in New York city and you need to get some maintenance work done. Well first thing first, I am going to start by researching a few companies
- building maintenance new york - This seems like a pretty good search query
And this is what we get:
Let’s see what is hiding behind the uninspiring PPC ad in the #1 position
This is where I end up. See anything missing from the page?
If the company is lucky, maybe I’ll bookmark them for later use when I make my final buying decision. If not, whatever they spent on the PPC position was a total waste. Had the company gotten some good advice, they would have developed a mechanism to encourage me to give them my contact information and get me in their prospect database so they could provide me with information to guide me in the purchasing process………….guide me to buying their service!
Oh well, better luck next time guys.