Making money through pay-per-click (PPC) advertisements isn’t an easy task. It requires expertise, experience as well as training. However, even if you employ an agency with the three things, it’s doubtful whether pay-per-click advertisements are worth the cost.
Knowing more about how PPC will benefit your bottom line can aid you in determining if it’s worth the cost. We assist companies in making this decision daily and will give you the same research method we employ for 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 decide whether something benefits your company, you must be able to define it properly. Sales representatives on the various platforms employ a variety of terms to determine PPC, as well as paid search ads, delivered listings, display ads, and remarketing. It can also be referred to as retargeting or pay-to-play.
The advertising platforms (Google, Bing, Facebook, LinkedIn)
The number of competing bidders on the exact keywords on that platform.
An excellent value for a brand-new customer
Before you get into these scenarios, you should first answer these questions.
What’s the Plan?
If you’re worried about the potential ROI of the results of a PPC campaign, you’ll need to design a campaign aimed at earning income for your company. While some established, large businesses use PPC to promote their brand or promote an event, most companies have to earn income from their advertising funds.
This is where it becomes complicated, especially in a B2B industry. If you don’t have a product to sell, how do you make money through PPC? 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 using the following model.
Divide your company’s annual earnings by the number of purchases or deals made during that time. (average price of purchase)
Calculate the average purchase value by multiplying the number of unique customers who purchased during the previous year. (intermediate purchase frequency)
Multiply the value of the purchase from Step 1. Then multiply it by the frequency of purchase amount in the second step. (customer value)
Then, determine the number of years a client purchases from your business. (average customer lifespan)
Multiply the value of your customer (step three) by the average time of life (step four). This is your CLTV.
After you have a rough estimate of your CLTV, What will you have for you to “sell” with your ads? A product or service demo? A free trial of software? Consultation for a specific service? Your site must provide the information that they’re looking for. It’s inefficient to show your home page to users looking for a particular service or subject. Which part of your website produces the most profitable leads related to the keywords and topics you want to use in the PPC campaign? The answers to these questions will allow you to avoid spending your money and time on ads that don’t perform.
Consider the Acquisition Channel
Once the CLTV is determined, it’s time to choose the best channel to run the PPC campaign. What are your prospective customers’ locations online? Are they connected to Google, Bing, LinkedIn, news sites, and industry blogs?
Your marketing team can work the issue out after your website has been connected with Google Analytics, and identifying referral traffic sources is easy. Using data to find the most effective acquisition channels will reduce your PPC budget for the most appropriate target audience and meet them wherever they are.
