What is Pay-per-click advertising and why you should be doing it!

by | Sep 25, 2015

Pay-per-click advertising (PPC) also known as Search Engine Marketing (SEM), which is not to be confused with Search Engine Optimization (which you can read a little about over here), is, in short, purchasing advertising space from the big search engines or your favourite social media network.

I recently read an article that stated that the advertising industry invests more money each year into researching how the brain functions than the medical industry does. While this did come as a shock to me it was also not really surprising once you think about it. Is it? One of my favourite areas in marketing which taps into the brain has always been consumer behaviour. These half-marketers half-pseudo psychologists have studied our behaviour and ultimately have worked out how to manipulate us in order to increase our engagement with their products or brands and ultimately our spending. Imagine what happens when people like that, people like me, get access to advertising space.

Depending on what you set out to achieve effective advertising can generate new business, increase brand awareness, lead to purchasing and if bold enough will change people’s behaviour. So despite the obvious benefits the large investment required for traditional marketing and advertising basically always meant that a start-up business could only dream of pursuing an advertising strategy let alone an aggressive and effective one. This is where our dear friends at Google have opened up the world to even the smallest of players.

Although you are probably already familiar with how PPC works it, in very simple terms, operates on Google auctioning off around 13 advertising slots per page that you view. Three at the top above the search results and ten down the right-hand side. Each company competing for the slots will either have an amount they are willing to spend per click (hence the name) or a daily budget they wish to meet and subsequently adopt a more dynamic bidding strategy in order to maximize the clicks they get each day. If you are willing to pay more per click than your competitor you will be given the top slot of the available advertising space and so these spots are all auctioned off automatically throughout the day.

While the auctioning system seems like a dangerous cycle for driving the cost per click upwards it is actually incredibly affordable. Obviously, it highly depends on your industry and current competition in the market however the average cost per click hovers around the $2.50 mark. Plus the added beauty of it is, if you don’t get any clicks, you don’t pay!

So why should you be pursuing a Google Adwords or Social Media Marketing campaign you ask? Firstly because your competitors are doing it but more importantly because it will, in most cases, give you a substantial return on investment. As a sensible business owner that is likely all you wanted to hear. In which case don’t hesitate to head over to our Online Marketing section or just contact us, alternatively read on.

When compared further to traditional advertising the digital realm offers two massive perks that cannot have their benefit overstated. These advantages are so amazingly mind-blowing in a geeky way that the traditional channels will never in human history be able to compete and, in fact, will never ever be able to offer them at all, at least not to the degree of finesse we have access to here and now. What am I talking about? Two very simple words “targeting” and “data”.

Online advertising allows us to specify the geographical location of where your ads should show up, what time of day they are to be shown or if they should follow your prospective clients around the internet like a Stage V clinger. Once your ads have been delivered we get real, accurate, cold, hard data. While data is boring to most it is actually really exciting for us over here at 3am Ideas because it allows us to adjust the elements of the advertising campaign to maximize user engagement and ultimately provide our clients, hopefully, you, an even bigger return on investment. Coupled with periodic performance reports for your web traffic and quality web design, the like we provide at our Perth office in Belmont, you will have a total overview of your online presence and promotion. That’s why we call ourselves digital marketers not just web designers.

Lastly you might be thinking I am just trying to encourage you to call us here at the office to start your advertising campaign with 3am Ideas, ok well I am, BUT I want to assure you that in most cases a Google Adwords or Social Media Marketing campaign can actually be of huge benefit to your business. I want to do that with a short story.

I spoke to a mid to high-end residential builder, based here in Perth, a few weeks ago and he said that his company had been pursuing radio and print advertising for many years. For the calibre of client I deal with on a daily basis these guys had a massive marketing budget. You can imagine the dollars involved when you are talking regular radio advertising spots. A few months ago they decided to get their toes a little wet with a Google and social media advertising campaign. They were overwhelmed with the effectiveness and they saw such a high return on investment that, at the time of the conversation, they had already pulled all radio advertising to divert their budget into this newly found channel.

So think about it, at $2.50 per click on average. How many visitors do you think you need to your website to get one person to call you so you can secure their business? Once you’ve secured their business how much is that client worth to your business’ bottom line? Are they likely to be return customers so will a $2.50 click potentially lead to a long-term business relationship? That is not just a quick cash injection for your business, that my dear readers is growth.

Even if I haven’t fully managed to convince you to start your digital marketing with us but at least have peaked your interest in the possibilities and opportunities available to your business then don’t hesitate to head over to our online advertising section to get any final info you might want or need and give us a call here at the office on +61 8 6118 2997. I would love to catch up with you for a coffee to discuss what 3am Ideas could offer you.

Subscribe to Keep Up With Our
Guides & Insights!

About 3am Ideas

We are Australia’s digital marketing agency for small businesses and startups. We provide an ROI driven service to our clients. We are especially dedicated to our Business Startup, Social Media Marketing and Search Engine Optimisation packages.

We always aim to work intimately with our clients because collaboration guarantees best results. From startups with big ideas or established small & medium sized businesses wanting to take the next step. Gain control over your online presence.

About the Author - 3am Ideas

3am Ideas is digital marketing agency focussing on providing data-driven services that get measurable and trackable results.

Based in Perth, Western Australia, we've been looking after small and medium-sized businesses since 2014, having worked with clients all over the country.

Our aim is to adopt the role of Virtual Marketing Officer for you, becoming part of your team, sharing in the successes, the blood, sweat and tears.

We're here for you. Let's get the job done!