PPC
as you all know is the acronym for Pay Per Click advertising. PPC is done
mostly through Search Engine Marketing (SEM) whereby businesses advertise in the search engines
like Google, Yahoo and Bing. Now PPC has also moved into social websites
like YouTube and Facebook and opens up more areas of targeted audience. Advertising through PPC means you incur costs only when someone clicks on your ads but yet enjoy the free broadcast of your ads known as impressions.
In
whichever country you are in, you can be assured that there is an available advertising platform as long search engines are being used e.g. Google AdWords or Yahoo Advertising. You will need to plan
out your budget right as having too low a budget is not healthy and too high is
not either.
Very often, advertising agencies will claim they are Google
Certified, or Google Partner Authorized Reseller status. This means that they
have been certified by Google to run the ads the way Google instructed
as a Partner or Authorized Reseller and have a marketing spending quota to achieve. This means they are obliged to encourage you to increase your daily budget to meet their status
requirement.
But
why does your budget still matters? Take for example if the
average Cost Per Click (CPC) is $0.50 and PPC
campaign budget is $10.00, this should get about 20 clicks. But then when
the campaign is run with the low budget, the high
competition in the keywords will lead Google to “seldom” show your
ads online and thus giving you lesser impressions. This in turn reduces your CPC to a state of "no clicks".
Real Life Case Study
Client
A has budgeted his PPC campaign for Design services at just $10 a day. They have an average
of 800 impressions a day but with no clicks. The PPC campaign ran for 2
weeks and there were still no clicks. Why is this so? Because Google will sense
that your budget is not enough to be spent and thus limit the number of
impressions it will show in your ads and will only show at the lower position or
on another page so that people will not click on your ads so fast.
Imagine if
Google were to wipe out your $10.00 in a day, you may be discouraged to continue your PPC campaign with Google. But if we are to raise the daily
budget to $25.00 a day, amazingly on the very same day itself, the number
of impressions exceeds 5000 and there were 63 clicks. Each CPC averages only $0.39.This shows that your daily budget is very important in the PPC campaign.
Client B has just started a SEO agency and wanted a daily budget of
just $10.00 to run his PPC campaign with popular keywords like SEO Singapore, SEO in Singapore, SEO Services, SEO company and all SEO related keywords. Similarly, for the first week of his PPC campaign there were "no clicks" on his ads. Only upon raising the daily budget to $50, did he get more impressions and more clicks.
Further on into PPC campaigns, with good traffic and number of clicks, optimization can be used to reduce the CPC of each click to bring in quality and convertible traffic for business sales leads.
Eager to find out the right daily budget to be set? Contact WebClicks Singapore for
a free quote on your industry and start seeing how much savings you can achieve in your PPC campaign. Request for a presentation from us today!
