Advantages and Disadvantages of the Pay-Per-Click Model

placeholder_rectThere are two different strategies for a business to be seen on the first page of the search engines. One is through Search Engine Optimization known as SEO, the other through paid advertisements or pay-per-click. Both routes can help your website rank in the number 1 or 2 spot of the search engine pages but in an entirely different approach.

In SEO, webmasters carefully strategize their overall web campaign which involves on-page and off-page optimization. The results can be seen and experienced after several months or even years if done correctly. Meanwhile, paid ads are a faster way to generate traffic, especially if your website is brand new.

A closer look at PPC…

Pay-per-click (PPC) is an online advertising strategy in which an advertiser only pays when a user clicks the ad seen on the search engines. To make things simpler, you’ll pay a particular amount to the host (Google, for example) to show your ads in their ad section so a user can see your ad and click through to your website. This model seems easy to maneuver, but it carries both advantages and disadvantages for the advertisers.

Pros:

  • The advertiser is in full control of the campaign budget. Using Google Adwords as a tool for your online advertisements, you have the power to define how much money you’d like to spend on a daily or weekly basis. Once your resources are drained, your ad campaign will automatically stop and will replenish the next day or week or month.
  • Using pay-per-click can instantly place your site on display for your targeted keyword on the first page of the search engines which drives traffic to your website.
  • With Adwords, you can also target your market within a specific area – country, region city and their neighboring towns using their advanced options.
  • The advertiser can test and run a few experiments and pause campaigns that are underperforming. Hence, an account holder can terminate ad campaigns anytime.

Cons:

  • Bids can be competitive – depending on what keyword you’re aiming for. A click could cost less than a dollar up to a staggering $20+ per click depending on the product and competition.
  • In order to get the top ad position, an advertiser must win the “bidding war” against their competitors. This “war” is not based only on the budget but also on the “relevance” and “quality” of your ad. Hence, securing the top spot requires more knowledge and resources.
  • There is no guarantee that the visitors who click your ads will be converted into leads or customers. Make sure to have an optimised landing page to make your online ad campaign a success.
  • There are a handful of web users who ignore or are skeptical of clicking ads. Most of the time, they serve as a click bait.
Overall, paid advertisements can yield rewards if done correctly. If you’re a website owner who owns a new site, blog or an ecommerce shop, choose a firm that is driven to assist their client’s company goals. Feel free to contact us to schedule a complimentary appointment for your business’ needs.

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