Are PPC Campaigns Still Worth It? 2023 Update
Over the last several years, the cost of running Google Ads has been on a steady increase which has caused businesses to wonder if utilizing them as part of their marketing strategy is still worth it. Rather than dismissing PPC campaigns outright due to higher costs, consider them as part of an integrated strategy that includes content marketing, social media engagement, and search engine optimization (SEO). By diversifying your approach, you can mitigate the impact of rising pay-per-click costs while still capitalizing on its benefits.
The Rise of Cost-Per-Click (CPC): Understanding the Cause
Over the past several years, the cost of running pay-per-click Google Ads has been on an upward trajectory. The primary cause behind this increase is the heightened competition among advertisers bidding for the limited ad space available. As more businesses recognize the potential of online advertising, the demand for ad space increases, leading to bidding wars and elevated bid prices and the bidding wars intensify. Consequently, the cost per click rises for all participants in the auction. This competition is fueled by the limited space available for ads and the desire to capture the attention of potential customers.
Advertisers must navigate this landscape strategically, focusing on factors like keyword relevance, ad quality, and overall campaign efficiency to ensure that they can secure meaningful results despite inflation.
Navigating High Advertising Costs
While the ever-rising cost-per-click might seem discouraging, there are effective strategies businesses can employ to navigate these challenges while continuing to reap the benefits of PPC campaigns:
- Conversion Rates: Regardless of the rising click costs, the ultimate goal of any PPC campaign remains unchanged: generating conversions. When the cost of acquiring a lead or sale has increased, monitoring and optimizing your conversion rates is paramount.
- Keyword Relevance: Ensure that the keywords within your campaign align closely with the intent of your target audience. This not only boosts the effectiveness of your ads but also contributes to a higher Quality Score, which can help keep your cost-per-click in check.
- Quality Scores: Keyword quality score consists of 3 factors: expected click-through rate, landing page experience, and ad relevance. By optimizing these elements, you can improve your Quality Score, which can lead to a lower cost-per-click.
- Consider Higher Budgets: While it might sound counterintuitive, allocating a larger budget to your campaigns could prove beneficial. With increased click costs, having a budget that accommodates these costs on a daily basis can prevent your campaigns from stalling due to budget constraints.
- Utilize Local Service Ads (LSA): When users see you multiple times in search results, they become more familiar with your business and are more likely to interact. Multiple appearances on the first page of search results can convey a sense of authority and trustworthiness to users.
Inflation-Proofing Your PPC Strategy
While the inflation within pay-per-click (PPC) campaigns presents a challenge, it’s important to remember that digital advertising remains an essential tool for reaching your target audience. By skillfully managing your campaigns, focusing on conversion rates, optimizing keyword relevance and quality scores, and utilizing local service ads and search engine optimization, you can weather the storm of rising costs and continue to drive meaningful results for your business.