What is PPC?
Various websites and search engines such as Google offer PPC advertising (such as Google Adwords) that enable you to place a paid ad on websites and in search result listings. The idea is that placing ads near relevant content will send interested visitors your way.
With search engine PPC programs, the vast majority of users tend to stick to the free listings, however such paid listings can be an effective part of your marketing strategy. For an example, here's how a Google Adwords program would work:
• Set up a PPC account
• Identify keywords that you believe users will use in their searches for your product or service and set the amount that you are willing to pay for your ad to appear when the search term is entered
• Develop a small text ad that may appear upon the keyword search
• Searches on your keywords may trigger your ad to appear - and hopefully entice someone to click on the ad, which links to your site
• Note that a listing and the ranking in the listing is not guaranteed and depends on your bid amount vs. your competitors' bids and other factors
• You only pay when people click on your ad - pay per click, in the amount you designate
PPC pros and cons
Pros:
• Test various keywords with controlled investment
• Run ad campaigns alongside relevant content
• Pay only for clicks through to your website
• Set spending limits to your campaigns
Cons:
• Generally less traffic than SEO -- PPC typically generates about 25% of search traffic
• Lower quality visitors -- PPC clicks convert at about a 25% lower rate than SEO clicks
• Requires ongoing management
• Keyword bidding can be intense, with high prices often diminishing your ROI and your ad placement
• Traffic usually stops or drops at the end of a PPC campaign
• Click fraud can be a problem - competitors can click your ads to trigger the fee and may even use automated means to do so
Integrating PPC and SEO
No doubt, PPC can generate qualified traffic to your site. But, as a stand-alone strategy, you could be missing out on much more quality traffic. Consider:
• Studies have revealed that only about 14 to 30% of all users click on PPC ads
• Savvy users tend to avoid ads and, in the case of search engine listings, vastly prefer the organic search results
• Well-done SEO can have a larger initial cost, but once completed, it can generate traffic indefinitely, for free
• Traffic coming via natural search as a result of an SEO investment provides greater ROI than traffic from paid search and can keep growing beyond the initial investment
PPC should certainly be part of any online marketing effort. But the difference between visitor quality/numbers and ROI of the two methods suggests that SEO deserves a proportionately larger chunk of the marketing budget.
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