Is PPC or Pay Per Click dead? If you ask Google, they may disagree. If you ask some of Google’s competitors, they may disagree. If you’ve ever tried to actually make money from PPC, then you know what I’m talking about.
Let’s do some math. If you go to Google keyword tools, you can easily get an estimate for various keywords. Any keywords with substantial traffic costs 50 cents and up. That means you pay Google 50 cents every time someone clicks on your ad. And, 50 cents is cheap really. You’ll probably pay closer to a dollar–but I’ll be conservative and use 50 cents.
We’ll say you get a good response of 1%. Many marketers close less than 1% of sales. At 1%, that means 1 out of every 100 clicks buys your product. Most online products cost anywhere fro $20-%50. Those 100 clicks cost you $50. So if you close 1%, you are just breaking even. What if you do a little less than 1%? Now you’re losing money. And if your clicks cost more than 50 cents? You’re losing money again. If someone returns your product, you’re losing money.
If you are making money in PPC, then you really don;t need to hear what I’m saying anyway. if you’re losing money in PPC, take another look at the numbers–is it really worth it?
Of course, Google doesn’t mind–they love it when people bid up the price of keywords. Think I’m kidding? try running an ad for” car loan,” or “home loan” or heaven forbid, “mortgage”. Those keywords are pricey.
So what’s a little internet marketer to do? Stay tuned. Check back soon and we’ll inform you of few nice little alternatives…
So what do you think? What has been your experience with Google adwords or other ad networks?