5 Instances When PPC is NOT a Good Idea

So, you have heard that Pay-Per Click (PPC) advertising is a quick and easy way to drive traffic to your website. You may have even been regaled with stories of companies who have started advertising on Google AdWords and have had leads and revenue come pouring in. You can basically start printing your own money! But, unfortunately, things aren’t always as good as they seem.

You could burn through a lot of capital before you realize that your business may not be the best fit for the dynamic world of paid search advertising. Here are some questions and thoughts to take into account before learning the hard way…

  1. Your keywords are expensive, but your lead value is low.
    Let’s say each lead you bring in has a value of $100 (based on your past sales history), but your keywords have an average cost per click of $25. This means to break even, you need your keywords to convert at a rate of 25% or greater JUST TO BREAK EVEN. Sure there might be some tricks to get the cost per click lower, but the volume around these keywords are going to be lower and that might mean leads will be few and far between.
  2. Inability to track success (leads/revenue)
    Quite simply, if you can’t track what your dollars are doing for you online, you shouldn’t be investing them. One of the biggest pluses in doing PPC is the ability to see precisely what is driving leads and sales into your business and how much it is costing you. Driving a car with your eyes closed is a bad idea, so is running PPC without tracking.
  3. Your typical customer isn’t acquired via Search Engine
    If most of your client base was obtained via cold calling and list sharing, PPC might not be a good fit. Know your audience! Ask yourself, “Would the decision maker I am trying to reach being searching for our product/service online?” Sometimes, that answer is “No”.
  4. PPC is going to be your main revenue generating source
    PPC is a great source to generate leads and revenue, but it should be used as a compliment to other marketing efforts.  Remember, you are paying for the traffic generated from PPC. If things are not running efficiently and generating revenue, you could get upside down very quickly. If you plan to depend solely on PPC to make it happen for you, keep in mind that when you go out of business, we do hire from time to time here at Fathom. J
  5. Nobody knows your product/service exists.
    You just created a brand new service; the only problem is that you are the only one that knows about it. You can absolutely run a PPC campaign, but you shouldn’t expect much traffic or results from that traffic. There are some web activities that could be done prior to launching a PPC campaign for a new service that would be unfamiliar to the general public, like online article submissions & press releases. Generate awareness, then think about setting up a PPC campaign for support.

There is good news that comes from this prior negativity! Fathom Online Marketing is getting more holistic in our approach to marketing your business online. Clients can have access to all of our service lines, so if PPC may not fit into your online marketing mix, we can look to other avenues to grow your presence on the web. Contact us today to see how Fathom Online Marketing can work for you!

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  • Samantha Avelon says:

    There is so much to know in Google Adwords that the fastest results can come with just a campaign audit. Results Driven is doing them for free at 325-446-1507

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