Pay-per-click (PPC) advertising is worth billions of dollars annually. Companies of all sizes invest in PPC and other online advertising strategies in an attempt to sell themselves to potential customers. Likewise, companies specializing in PPC services are helping their clients reach larger audiences through paid ads.
If your company is looking into the possibility of PPC advertising, note that it isn’t always the right strategy. There are times when PPC management doesn’t offer enough of a return to make it worthwhile. There are other times when it is worth every penny spent on it. While you think on that, here are five vital statistics you should also consider:
PPC ads are the online equivalent of TV and radio spots. They are designed not only to drive traffic to a website, but also increase brand awareness. Even if most users who see a company’s PPC ads never click on them, just getting the company’s name and logo in front of their faces creates brand awareness.
Do not underestimate the value here. Brand awareness causes consumers to remember a particular brand when they need the products and services the brand sells. If PPC can increase awareness by 80%, it seems like a worthwhile investment.
Research data suggests that 27% of web users search for a company online after seeing a display ad. In fairness, it should be noted that not all display ads are PPC ads. Still, it stands to reason that the same 27% would click on a PPC ad if the option were available. So what does that tell you? Well-designed ads built around the right keywords encourage customers to either visit company websites or at least do research on the company in question.
Sticking with that same 27% who are encouraged to search after seeing a display ad, approximately 59% of them convert. So more than half of the customers who visit a site as a direct result of a paid ad end up buying something. That is pretty impressive. Simple math demonstrates that 16% of all web users who see a display ad eventually spend money with the company behind it. The ad is directly responsible for that spend.
Retargeting is a PPC ad strategy that seeks to take advantage of repeat traffic. According to Salt Lake City’s Webtek Digital Marketing, retargeting involves designing special ads that are only displayed in the browsers of people who have already visited a company’s website. Webtek says retargeting is pretty typical in modern PPC services.
Why does this matter? Because 70% of web users are likely to make a purchase after being retargeted. They may not make a purchase on their first visit, but 70% will make a purchase during a repeat visit.
Finally, roughly 50% of all global advertising is now done online. Companies wouldn’t be investing so much in online marketing if it wasn’t producing results. On a similar note, they would not be spending billions on PPC ads if PPC did not work.
PPC advertising might not be appropriate for every marketing campaign your company embarks on. It might not be appropriate at all. But you will never know if you don’t look into it. Research PPC and how it might benefit your company. If you decide to go for it, hook up with a marketing firm that offers PPC services.