Top PPC Tips for Effective Marketing - PPC Pricing Models
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Return on investment (ROI) has been the watch phrase since the auction-style bidding process began. The type of pricing model for PPC advertising is dependent on marketing drivers. Current pricing models include a wide range of drivers.
Percent of Revenue pricing is dependent on performance or conversion rates. There are difficulties in tracking buying patterns, as consumers often visit a site more than once before purchasing. There are no economies of scale for the client; if revenues double, then fees double.
Percent of Ad Spend pricing is common when using a Search Engine Management Agency (SEM). Pricing is determined as a percentage of the advertising budget. The standard range of percent of ad spend is 10-20 percent of the total advertising budget. This counters the tracking problems, especially mixed media issues (where a client may be influenced by print and web ads in the buying decision). It also eliminates the tracking issue of multiple visits prior to purchase. For smaller companies, or smaller advertising budgets which may not be as attractive to SEM agencies, a flat rate or hourly fee structure may be more attractive for both parties.
Key Benefits
Beginning a PPC campaign is an easy and potentially inexpensive process, with AdWords campaigns beginning at just a few dollars. The set up requires no specific changes to a web site, other than the necessity of a landing page.
Google, Yahoo and other popular search engines are seen by trillions of users every day. PPC marketing offers strong visibility without the more daunting process of Search Engine Optimization (SEO). The ads are seen on the first page of the search results, creating strong visibility for the company. Ads begin the day the campaign begins, with no waiting for indexing or search engine bots and crawlers.
Since the design of PPC is performance-driven, the client pays only when a consumer clicks on the ad. PPC allows constant control of what the ad says on the results page, and can be changed quickly.
The client chooses the bid total for each keyword term, controls how much is spent each day and can alter the campaign with a click of the mouse.
Next: Top PPC Campaign Optimization Techniques >>
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