Pay Per Click (PPC) Advertising: Is it Worth It

Making money through pay-per-click (PPC) advertisements isn’t an easy task. It requires expertise, experience, and education. However, even if you employ an agency with these three qualities, you’re unsure if pay-per-click advertisements are worth the money.

Knowing more about how PPC can improve your bottom line can assist you in determining whether it’s worth the cost. We help businesses make this decision every day. We’ll provide the same research process we use with our clients. If you’ve finished reading the entire article, you can determine if paying-per-click advertising is an effective strategy for your company.

What is PPC?

Before you determine whether something benefits your company, you must be able to define it properly. Sales reps on different platforms use various terms to describe PPC, also known as paid search or advertising with sponsored content display ads, Remarketing, retargeting, or pay-to-play.

The advertising service (Google, Bing, Facebook, LinkedIn)

The number of competing bidders for the exact keywords within the same platform.

An excellent value for a brand-new customer

Before exploring these scenarios, you should first answer these questions.

What’s the Plan?

If you’re worried about the return on investment from a PPC campaign, you’ll need to create a plan to make your company money. While some established, large firms use PPC to establish their brand or promote an event, many businesses require income from their advertising funds.

This is where things get complicated, especially when your business is in the B2B market. How do you earn money from PPC if you don’t own an item to sell? Read on.

What’s the Lifetime Value of a New Customer (CLTV)?

According to HubSpot their model, a customer’s lifetime value can be determined by using the following model

To assess your CLTV, Follow these steps:

Divide your company’s annual earnings by the purchases or deals made in the previous year. (average price of purchase)

Calculate the average purchase value by the number of distinct customers who purchased in that calendar year. (intermediate purchase frequency)

Multiply the purchase value at step 1 by the frequency of purchase amount in the second step. (customer value)

Then, you can calculate the average time the customer buys from your business. (average customer lifespan)

Multiply the value of your customer (step three) by the average time of life (step four). This number is your CLTV.

When you’ve got an estimate of your CLTV, What do you require for you to “sell” with your ads? A product or service demo? A free trial of software? Consultation for a specific package of services? Your site must provide the information that they’re looking for. Presenting your homepage to users searching for a particular service or subject is not worth the time. Which part of your website generates the most leads related to the issues and keywords you use in the PPC campaign? The answers to these questions can help you avoid spending your cash and time on advertisements that aren’t working.

Consider the Acquisition Channel

After you’ve had the CLTV determined, it’s now time to choose the most suitable channel to run the PPC campaign. Which are your customers online? Are they connected to Google, Bing, LinkedIn, or even news sites and industry blogs?

Your marketing team can work it out when your website is linked with Google Analytics; identifying traffic sources is simple. Using data to find the most effective acquisition channels will reduce your PPC budget to target the right target audience and meet them exactly where they are.

The Budget

Do you have the funds for an initiative that pushes limits and allow you to determine the most effective key phrases and appropriate calls to take action? There is a myriad of tools available to assist your marketing team in determining the most practical terms for your budget; remember that only a well-designed landing page can turn users into leads. It may take some time and imagination to determine the best combination.

If you decide to invest in a PPC campaign, make sure you have space in your budget to invest in the design of your landing page, tracking, and follow-up. PPC isn’t a “one and done” marketing method; it requires analysis, planning, and implementation to achieve outcomes when you work with a reputable PPC company with expertise in B2B marketing, you will ensure that your website brings potential leads into your lead nurturing strategy,, particularly when you have a lengthy time frame for sales.

So, Is PPC Worth It?

Ultimately, the answer isn’t easy as it is contingent on many variables. Your industry, seasonality, the economy, and the PPC marketing team you select will decide the value of PPC. The most crucial thing you should do before decidingo invest in PPC is to address all the above questions and discuss them with your potential PPC team. It’ll take a few conversations to determine whether PPC is worth the investment. If an agency is prepared to go live without addressing these issues,, look elsewhere.

Conclusion

In times of economic uncertainty, investing in PPC in your strategy for marketing can allow you to leapfrog your competitors. If you establish an effective and data-driven PPC strategy and collaborate with an experienced Marketing team, you’ll reap the most value out of the PPC campaign.

Not sure how to start? Download our guide for free on How to Increase Website Traffic. It also includes an area for paid advertisements.