Driving Sales with Pay Per click

Driving Sales with Pay Per click
By networksolutions, LLC 2009

In tough economic times, customers are holding back and buying less. They are pickier about what to buy. On average, shoppers spend a month doing research online before making a purchase. This makes online search even more important to marketers.

Research shows that search engine marketing (SEM), including Pay Per Click (PPC), is expected to grow and reach $26 billion by 2013.

In the Internet world, 81% of all users start at a search engine to find what they are looking for. “Customers are going to search engines because they are looking for better deals”, says David Hallerman. “And marketers are going to search engines because that’s where the customers are.”

Since the majority of the online public turns to the search engines first, marketing on search networks such as Google® and Yahoo!® should be a critical component of your online marketing strategy. And the fastest way to break into search engine marketing is through Pay Per Click advertising.

Online marketing analysts agree that a successful Pay Per Click campaign can generate a conversion rate of 1.5% to 3%. For online retailers, Pay Per Click is particularly effective, with a conversion rate sometimes reaching 5% or higher. Pay Per Click advertisers continue to report the highest return on investment compared to other forms of online marketing:

What Is Pay Per Click?
Pay Per Click advertising builds on the popularity of search engines to bring your message to consumers at exactly the time they are looking for you. Most Internet users are familiar with PPC ads – i.e., sponsored links – which appear to the top and right of natural search results. These ads are displayed when the user types a keyword into the search engine that matches the keyword chosen for your search engine marketing campaign as relevant to your business.

An advertiser only pays for an ad when a visitor clicks on it and is taken to the advertiser’s Website. PPC campaign managers bid on keywords with the amount they are comfortable paying per click and the search engine uses that bid, along with a number of other factors, to determine ad placement and how often the ad will be shown.

PPC is relevant advertising. Unlike other forms of traditional and online advertising, only consumers that are already searching for your products will see your ads. This leads to a friendlier user experience for shoppers, less wasted ad costs for you, and a higher conversion rate for your ad campaigns all around. In addition, Pay Per Click lets you to create ads that are targeted to a specific geographic area where your customers are located.

In 2001, the Interactive Advertising Bureau (IAB) reported that online advertisers were spending an average of 4% of their marketing budgets on PPC advertising. In 2007, that number jumped to 48%. The PPC industry is booming and with search engine usage rising rapidly year over year that trend is likely to go up.

It Is More Than Just Clicks
Pay Per Click advertising can mean more than visitor traffic to your Website. It can be a source of relevant customer leads that are created when visitors to your Website are encouraged to take action such as making a phone call or filling out an inquiry form. There are a number of actions that potential customers can take online or even offline. Your campaign manager will be able to recommend lead types that will benefit your business the most.

Phone calls – Customers clicking on your search engine ad can be directed to a page on your Website that prominently features a unique phone number. Customers will call this number to inquire or buy your products and services. Your PPC service should be able to track all phone calls and even record them so that you can listen to the conversations at your convenience. Phone call tracking is ideal for service-based companies.

Emails – In addition to a phone number, your landing page can feature an email form that potential customers will use to reach your business. This can be a great way to build a marketing database of customer contacts.

Forms – Submission forms are unique for each business. Customers use these forms to subscribe to a company newsletter, receive discount offers, request a catalog or sign up for a free trial. In return, you get valuable information about potential customers who are interested in your products and services.

Shopping cart checkouts – For online retailers, a search engine ad can lead to a Web page with an Add to Cart or Purchase button that allows customers to complete the transaction online. Your PPC service should be able to track online purchases that originated from your search engine ad and thus, provide an accurate measurement of your return on investment.

For all of the above actions to take place, it is important to have an effective landing page or the page on your Website that customers visit immediately after clicking your sponsored listing. This page must be consistent with the message that you are trying to convey in your online ad. Effective landing pages guide visitors toward taking an action with clever content, attractive graphics and strategically placed links and buttons for the user to click.