Your ideal customers go online to look for what you are selling. Wouldn’t it be a great idea to pitch to them at such a time? That is the beauty of pay-per-click (PPC) advertising. One of the key advantages of PPC advertising is that it can filter out irrelevant noise and enables you to market strategically at the right time for maximum benefit.
This blog post highlights the main characteristics of PPC traffic and emphasizes its benefits for businesses from across sectors. After all, it is the best method of directing targeted traffic to a website and increasing business revenue.
Table Of Contents
Advantages of Pay-Per-Click Advertising
Businesses are constantly striving to find better ways to reach out to their customers and grow their market share in the highly competitive online world. PPC advertising is a powerful tool with distinct advantages that benefit businesses in terms of web traffic and sales. This is one of the critical components of the PPC marketing landscape.
Without further ado, here are the top pay-per-click advantages you may expect if you plan to tread this path.
Targeted Traffic: The Right Person at the Right Time
One of the top benefits of PPC advertising is the delivery of targeted advertisements. PPC targets the right audience, unlike other forms of advertisements that operate on the band, including the right audience.
One can profile the customer through several parameters, including:
- Demographics. Age, sex, wealth, education, occupation, income, marital status, and more.
- Interests. Pastimes, web activity, and buying habits.
- Geographical coverage. Particular towns, areas, or a circle surrounding your establishment. Businesses with brick-and-mortar stores or ones limited to specific regions can significantly benefit from this type of targeting.
Consider this example. A clothing store in New York launches a new winter wear category. Thanks to PPC, it can target its ads toward winter sports enthusiasts aged between 25 and 45 years who live in areas where it snows. This increases the likelihood of viewers clicking on its targeted ads and might also work well for boosting conversions.
If done at the right time and in a targeted manner, PPC helps you utilize your advertising budget in the best possible manner and enhances the likelihood of the desired actions, such as visiting the page to buy something or subscribing to your newsletters.
Sales Growth: Increasing Conversions and Revenue Generation
One of the top PPC advantages is that you may expect high conversion rates along with an increase in revenue generation. However, PPC is not all about impressions or clicks; a consumer expects something more concrete when it comes to results. As a result, when you create and tweak ads based on your PPC goals, keep these points in mind.
- Set up a sales funnel. Use high-intent keywords and redirect users to landing pages built explicitly for various stages of the sales funnel, all leading to making a sale.
- Make online and offline purchases easy. Advertise new items, discounts, or specials that will drive customers to making purchases regardless of the platform, offline or online.
- Grow customer lifetime value. Implement retargeting ads to reach out to existing and previous customers and persuade them to purchase again.
Studies reveal that PPC is quite profitable for businesses when it comes to return on investment (ROI). According to Google, a $1 investment through Google Ads can generate a profit of $8 via Google Search and Ads.
Brand Awareness: Building Recognition and Trust
In addition to driving immediate online sales, targeted PPC traffic also helps increase brand awareness and enhances brand equity. Even when users don’t click on your ads at that moment, chances are they will retain your brand message in their minds.
Repetitive interaction with a brand across various search engines and other mediums will create a sense of trust among potential buyers. When they wish to spend their money, they will remember your brand.
For example, a U.S.-based tech startup that plans to launch a mobile app can employ PPC to raise awareness for the app in question and, by extension, generate interest. In this scenario, it needs to use the right keywords and determine the demographics that are most likely to download the app in the highly competitive technology industry.
The benefits of pay-per-click advertising, when done in the right manner, include attracting potential customers, increasing sales, and creating a brand that will help you win the trust and loyalty of your target audience.
PPC Case Studies: Success Stories in North America
Businesses across North America have reaped various pay-per-click advertising benefits that include attracting the right kind of visitors, increasing sales, and meeting marketing objectives. Here are a few examples.
Case Study 1: Increased Footfall and Phones Orders
A small family-owned bistro in Chicago needed help getting people to choose their place over other bigger chains. It needed to increase the customers of people who visited it and placed phone orders for delivery or takeaway.
The bistro used the services of a digital agency with expertise in PPC. It ran campaigns that employed the following approaches based on competitor analysis.
- Geotargeting. Only web users within a certain distance from the restaurant were shown follow-me ads when they went online. This way, the ads captured potential customers from the vicinity.
- Dayparting. The ads appeared primarily at lunchtime and dinnertime, the peak hours when most people go out to eat.
- Ad scheduling. It carried out other campaigns on days with a lower-than-normal inflow of people to the restaurant.
- Appealing ad copy. Ads highlighted special offers, daily specials, and the restaurant’s unique ambiance to entice customers.
Three months later, the bistro registered impressive growth in its customers’ traffic and an increase in its orders via the Internet.
- Website traffic: Grew by 150%
- Online orders: Boosted by 200%
- Overall revenue: Increased by 30%
This case study shows how a local business can use targeted PPC traffic to gain a competitive edge against more prominent contenders and generate offline and online revenue.
Case Study 2: Dominated the Holiday Season
A Canadian eCommerce company selling outdoor products was looking for ways to increase its holiday revenue. It was in a brutal race with the larger eCommerce players, presenting a need to strategize how to win holiday shoppers with competitor PPC analysis.
It put a multi-channel PPC campaign in place which consisted of:
- Target campaigns. It ran targeted ad campaigns to showcase its best-selling holiday gift products.
- Buy again. It targeted buyers who visited its website and viewed specific items without buying them.
- Behavioral remarketing. It attracted re-targeted traffic through highly relevant ads based on past browsing behavior.
- Holiday-themed ads. Customers found its ads and messages with a holiday theme appealing and encouraging.
It did not come as a surprise that the eCommerce store attracted more customers and experienced a surge in sales, especially during the holiday season.
- Website traffic: Increased by 80%
- Conversion rates: Up 35%
- Overall sales: Grew by 45%
This case study illustrates how eCommerce businesses can efficiently use PPC to target holiday season shoppers, thereby improving conversions and overall revenue during periods of high customer traffic.
Case Study 3: Generated Substantial High-Quality Leads
A B2B service company located in Mexico City that offers IT solutions felt the need for better-quality leads to bring more clients on board. It was necessary to have a plan for gaining access to decision-makers within the industries they were targeting.
The digital marketing company it hired executed a focused B2B PPC strategy that targeted the following:
- LinkedIn Ads. LinkedIn ads targeted decision-makers within their industries and other companies due to their professional social network.
- Lead magnets. It provided particular documents such as white papers and webinars to entice and capture leads.
- Targeted landing pages. It developed separate landing pages for each campaign; designing them specifically for lead generation.
- Compelling ad copy. It effectively marketed its client as a specialist, drawing attention to its services and unique selling proposition (USP).
Within six months, the B2B service provider experienced impressive growth in leads and client acquisition.
- Leads generated: Increased by 120%
- Conversion rates: Improved by 20%
- New client acquisition: Up 25%
This multi-channel PPC advertising case study reveals how B2B players can effectively use PPC, including LinkedIn Ads, to generate leads, convert them, and acquire new customers.
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PPC Statistics from the North American Market
Numbers don’t lie, and when it comes to PPC, they come in the form of statistics that measure performance and track trends. Here are some interesting PPC statistics that target the North American market in terms of click-through rates (CTR), conversion rates (CR), return on advertisement spent (ROAS), and mobile PPC.
Click-Through Rates
Click-through rate (CTR) is an important metric that indicates the percentage of people who have noticed the advertisement and have proceeded to click on it. Average CTRs in North America change based on the industry, and you may see in data collated by WordStream.
- Dating and personal services. 05%.
- Advocacy. 4.41%
- Auto. 4.00%
- Education. 3.78%
- eCommerce. 2.69%
- B2B. 2.41%
- Consumer Services. 41%
Many reasons account for the change in CTR, some of which include:
- Persuasive ad copy. Elaborate and engaging ad content displaying good value propositions and an attractive offer encourages people to click.
- Exact targeting. Showing the right advertisements to the right people increases the chances of clicks.
- Landing page experience. Functional and easy-to-use landing pages encourage users to linger on the website longer and help convert them into customers.
Conversion Rates
Conversion rate refers to the proportion of clicks culminating into particular actions, which could be making a purchase, signing up for a service, or filling out a form. From the PPC perspective, this is the targeted traffic that converts. Average conversion rates across different PPC campaigns are distinct with varying figures.
- Search ads. Search ads come with conversion rates between 2% to 5%, based on a campaign’s purpose and the industry.
- Display ads. These have comparatively lower conversion rates, averaging about 0.5% to 1%. This is because they tend to focus on building brand awareness and increasing outreach.
- Social media ads. Different platforms tend to have varied trends in advertisement conversion rates, usually between 1% and 3% based on the niche.
This is why it is important to optimize landing pages for conversions. You should ensure they match your ad copy, and are attention-catching and frictionless.
Return on Ad Spend
Return on ad spend (ROAS) is one of the important KPIs in AdWords. It tells you exactly how much revenue you bring in for every advertising dollar spent. The ROAS average differs between particular industries in North America. It varies between products and services too, and it usually ranges between 2.1 and 6.1.
- Much lower than the ideal 4.1 return on ad spends, the return on ad spends can be about 2.1 and 4.1 when shopping activities are at their peak.
- This area is where returns during ad spend are significantly high, with an average ROAS overpowering its industry peers, ranging between 3.1 and 5.1 or even more.
There are several ways that an agency can increase this figure, and they include:
- Effective bidding strategies. The right bidding strategy and placing the right bids at the proper time can save your resources and increase returns.
- Consistent monitoring of campaigns. You will get better results if you track campaign results and make changes or tweaks to improve efficiency.
- Optimized landing pages. It becomes easier to derive sales revenue more efficiently with effective landing pages that drive leads toward conversions.
Mobile PPC Tracking
Today, mobile PPC is already the market leader in North America, and the widespread adoption of smartphones is the obvious reason.
- The growing influence of mobile. More than 60% of the clicks generated from PPC campaigns come from mobile devices.
- Mobile priority. With mobile-first indexing, Google ranks the mobile version of your website higher, which in turn affects the rank of PPC ads and daily campaigns.
Conclusion
Thanks to the rapid adoption of technology by many businesses in the digital world, PPC advertising is a valuable tool that addresses their needs. With great precision in targeting the right customers, increasing revenue, and driving qualified traffic, PPC allows a business to reach out to its target audience and achieve its goals.
Increasing a brand’s market presence and recall, capturing quality leads, and boosting return on investment are some of the advantages of PPC advertising you may expect. Not surprisingly, if you want to make your mark in the ever-competitive digital landscape, you should consider partnering with a digital agency that specializes in capturing targeted PPC traffic.
