IS USING PPC ADVERTISING RIGHT FOR MY BUSINESS?

The best way to determine this is to do the math. First, determine how much a new customer is worth in added revenue.  Is it a one-time sale or will it produce recurring revenue? See what the average PPC cost is per click; since not everyone buys, estimate that it may take 10 clicks or more to gain a new customer. This is more easily determined once you find your money words. Professional PPC programs test daily to manage your account. The first two months of testing will provide the converting keyword phrase trends that are a good benchmark for SEO and content marketing plan.

For example, if a new customer spends $100 and it takes 10 clicks to gain a new customer at $2.50 per click, then the $100 sale costs you $25. This is a $75 gain. If the average cost per click is higher than your return then you need to discuss your alternatives with a PPC professional.

RECOMMENDATION

With all the PPC firms and payment options available, we recommend that you avoid firms charging a percentage of ad spend on top of a management fee. You should also avoid the firms that charge a fixed monthly fee that includes your ad spends. We have run the numbers and this is not a good business decision. In order for a PPC firm to be profitable using this model, they need to include bidding on less expensive, low demand keyword phrases. Furthermore, most do not roll over any remaining ad budget to the next month.

As an example, one of our attorney client’s primary converting keyword phrases was $7 per click. The PPC vendor he was using at the time included bidding on phrases that had only a few clicks a month for a cost of only 5¢ per click. These phases were not converting. At $7 per click the ad spend would not go very far since it included the management fee. The vendor would not share how their fees were earned when we reviewed our client’s account. Avoid this scenario even though it appears to be a better deal. Another suggestion is to ask for a list of the keyword phrases and Google’s suggested cost-per-click. See if the math works and then ask the hard questions.

We recommend that you work with a firm that actually is Google certified. It means they understand the science, as well as the mechanics of how PPC works.

QUESTIONS TO ASK

If you wish to use a PPC vendor, then ask them the following questions:

1. Are you Google certified in PPC? If no, why not?

2. Are you experienced running Facebook ad campaigns?

3. How does Google AdWords differ from Facebook?

4. Does your firm actually run PPC campaigns or do you outsource to another vendor?

5. Do you conduct the keyword research? Will you include the estimated cost per click for the keyword phrases so I can gauge expenses?

6. Can I review and approve the keyword list?

7. How do you determine the keyword phrases that buyers use as opposed to the shoppers?

8. Do you know how to spy on my competitors PPC keywords to determine which are converting?

9. Will you continually test my PPC campaign, and how? What do you perform to help with conversions?

10. Are you planning to continually test my landing page to help increase conversions?

11. What are your fees and is a contract required? Explain.

12. If my monthly ad spend is not completed, does the balance rollover into the next month?

13. Do you require a contract? If so, for how long?

14. If your campaigns are not performing, how do I get out of the contract?

15. Will you provide a list of your current PPC clients who can be used as references?

16. What kind of monthly reports will I receive? Will you review the results with me to make sure I understand how these results impact my business?

17. All PPC firms offer traffic, so how are you different from your competition?

18. Give me three reasons why I should work with your firm.

NOTE: Google recently introduced a set it and forget it PPC program called Adwords Express for local businesses. You create an ad, determine whether to send traffic to your Google Maps Place page or website; and Google recommends a budget based upon the ad competition. Additionally, you can also set your own budget. Be aware, though that you are responsible for measuring the conversion rate that ensures you are running a profitable campaign.

CONCLUSION

Improperly conducting a PPC campaign can prove to be a costly mistake. Traffic without conversions is motion…not productivity. We’ve seen instances where businesses loved that the phone was ringing but were shocked to find out they were actually losing money. We suggest that you do your homework and have a true PPC professional advise you properly and manage your campaign according to sound PPC principles.

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