Is Pay Per Click (PPC) advertising really worth the investment for small businesses? Before answering that question, you must first understand what PPC advertising is.

What is PPC Advertising?

The term PPC stands for Pay Per Click, which normally refers to paid listings that show up either on the top or side of search engine results. Businesses use it to target users who are searching for either their company, services, or products. They can pinpoint users in specific locations and even market to users who are searching for other brands who offer similar products or services. Users click on these paid listings and are led to either the company website or a landing page where the company can market their services or products.

what is ppc?

When a company launches a PPC campaign they pay for every time a user clicks on their paid listing, hence the name pay per click. It’s essentially a way to buy prospective leads.

How does PPC Advertising work?

Now that you know what PPC advertising is, it’s also important to understand how it works. This can help you determine whether it’s right for your business or not. The most common forms of PPC advertising is done on either Google or Bing/Yahoo through their advertising platforms, AdWords and Bing Ads.

It’s completely free to set up an advertising account within both platforms and you can begin creating advertising campaigns immediately after you set up your payment sources. In each advertising campaign you can list keywords that you would like to show up for, or “bid” on, as well as set what location your target market is in.

The Unfortunate Truth

PPC ads are positioned based on ad rank. Ad rank takes into account the keywords chosen for the campaign, how much a company is willing to “big” on an advertisement, and the quality score. The quality score is based on the advertisement’s relevancy to the landing page it links to and keywords the company is bidding on, as well as the average click-through rate.

Effective PPC advertising takes strategic planning, knowledge of PPC advertising, and close monitoring which is best done by a specialist. Unfortunately, most small businesses can’t afford to hire a specialist to manage PPC advertisements.

When it comes to PPC ads from small businesses and larger brands the larger brands often come out on top. In addition to having a budget large enough to bring in a specialist they are able to bid much higher for keywords, pushing small business advertisements down in position. This is why small businesses often find that PPC advertising is simply not worth the investment, time, or effort.

Digital Marketing Methods That Have a Greater Return on Investment

When it comes to marketing your small business you are better off investing time and effort into building a responsive website, search engine optimization, and content. Not only will these marketing methods yield a greater return on investment, they can also bring in better quality leads.

If hiring an internal digital marketing specialist to come work for your company isn’t in the cards, you can outsource your website design, search engine optimization and content to a company that specifically provides these types of marketing services. Outsourcing your SEO and content can help you get the greatest results long term and will help you increase your company’s revenue significantly.