Pay-per-click advertising is just one of many advertising avenues that online businesses can follow in order to increase traffic to their online space and even increase sales in their online stores.
But as with any advertising plan, pay-per-click advertising involves very different costs.
You may be finding yourself questioning whether pay-per-click advertising is actually worth its fairly significant investment and whether you should instead opt for another advertising opportunity.
Want to find out all you can about pay-per-click advertising?
Then make sure to read on down below, because we are going to explore, in-depth, the world of pay-per-click advertising, to find out exactly what it costs, and whether it actually proves worthwhile in the long run.
How Does Pay-Per-Click Advertising Work?
Luckily, pay-per-click advertising is very true to its name. This advertising model relies on advertisers paying small fees every time their ad is clicked on..
Pay-per-click advertising most commonly takes the form of search engine advertising, such as through Google’s own ads that show up in response to specific search terms and queries.
Pay-per-click advertising could be seen by many as a very affordable way to get started in the world of online advertising.
Let’s say a small business was looking to get started with online advertising, pay-per-click advertising would allow them to experiment with different advertising campaigns without risking spending massive amounts of money.
If a hypothetical small business’ initial advertising campaigns prove unsuccessful and don’t lead to many clicks, they will not have to pay as much!
Most of the time, pay-per-click advertising does prove to be massively profitable, as, if a business manages to make sales thanks to its advertisements, then it will have already recouped the potential losses of paying for the customer’s click.
The actual cost of an individual click is actually a very trivial amount, so many businesses do not have to worry about truly massive costs.
What Are The Advantages Of Pay-Per-Click Advertising?
As well as ensuring that low-impact ad campaigns don’t cost a business too much money, pay-per-click advertisements also allow websites and online businesses to start advertising instantly.
Standard advertising endeavors, especially through the use of Google Ads, require plenty of time to be spent researching keywords in order to rank higher on the search engine through SEO.
However, unlike standard advertising campaigns, pay-per-click advertising campaigns automatically rank highly on search engines. This is great for any businesses that cannot afford to invest hours of work into keyword research and SEO optimization!
Pay-per-click advertisements also easily reach the people that are looking for the products they advertise.
Whenever a search engine user enters a query that is relevant to the product that you are selling, then they will automatically be met with advertisements for that product.
It is also incredibly easy to track whether your business is receiving a strong return on investment with your pay-per-click advertisements.
It is easy to track the number of clicks on your advertisements, how much those clicks collectively cost, and how many potential customers go on to become full customers.
If you notice that your potential customers are not going on to actually purchase products on your website, then you can focus on dedicating your time to minimizing hurdles between considering purchasing a product and then confirming the purchase of it, which in turn improves the efficiency of your pipeline.
The more that people click ds and then go on to purchase products, the better an investment that your advertisements will prove to be.
What Are The Disadvantages Of Pay-Per-Click Advertising?
One of the major disadvantages of pay-per-click advertising is that, if potential customers that click on advertisements do not then go on to purchase the advertised product, then money could be wasted.
If a large number of potential customers are failing to be converted to paying customers, then businesses could very quickly find themselves paying more for pay-per-click advertising than they are actually bringing in!
Thus, it is very important to always be monitoring your pay-per-click advertising campaigns, in order to ensure that the advertisements are a worthwhile investment that can help you to turn a greater profit.
This also leads to another potential disadvantage of pay-per-click advertising, as you will need to invest a fairly significant chunk of time into ensuring that your advertising campaigns are proving fruitful.
This can have an impact on productivity for the business, especially if a large chunk of the team is dedicated to improving the advertising campaigns.
Time investment also proves to be a massive hurdle when it comes to pay-per-click advertising because you will need to ensure that your website is properly optimized in order to convert visitors from ads into paying customers for your products or services. Optimizing your website can take a very long time, and will often require a lot of research.
As a result, you should aim to focus on optimizing the user experience of your website and optimizing your customer pipelines before you set out to start up a pay-per-click advertising campaign.
As well as this, despite allowing you to get advertising right away, running a pay-per-click advertising campaign can involve quite a steep learning curve as you need to ensure that you are able to properly read and gauge metrics so that you can tell if a campaign will yield a return on investment.
If you do not have a strong sense of literacy when it comes to running pay-per-click advertising campaigns, then you may find running such a campaign to be highly overwhelming and difficult.
You will likely need to invest a significant amount of time in learning the ropes of running a pay-per-click advertising campaign before you set out on it.
You may also need to train multiple staff members to manage a pay-per-click advertising campaign, which not only takes some significant time but also involves a significant investment of company money.
How Much Does Pay-Per-Click Advertising Cost?
This can vary slightly not only based on which platform is hosting the advertisements, such as Google but also when the advertising campaign takes place, as costs are always fluctuating from year to year.
On average, pay-per-click advertising tends to cost around $1 for every click that an advertisement generates. Thus, you should make sure that visitors to your website are likely to become paying customers, by optimizing your customer pipeline.
This will help you to ensure a return on your investment in the advertising campaign!
Pay-per-click advertising is useful for allowing businesses an affordable way to advertise on some of the world’s top search engines and increase their digital traffic.
Best of all, the cost of a single click generally tends to be around $1, so if enough visitors can be converted into paying customers, then pay-per-click advertising can prove to be very profitable.
However, if a company’s pipeline is inefficient, and few visitors are converting into paying customers, then pay-per-click advertising may not prove as profitable!