When discussing PPC accounts with new clients, I inevitably make a comparison between pay-per-click accounts and the Stock Market. Overall, Stock Market shares have continued to increase in cost over time, even when adjusted for inflation. PPC keywords are similar to rising stock prices in that they too have risen in cost-per-click. This is due to the increased competition in all fields as competitors attempt to outbid each other for premium ad ranks, conversions and sales.
Google has recently stated otherwise in their Quarterly Report, acknowledging the growth of AdWords customers but proclaiming that cost-per-clicks have gone down overall by 11%. However, independent tracking has reported cost-per-clicks rising quarter-over-quarter, even for branded keywords. In this great article, the author postulates that YouTube clicks for video ads, which tend to be less expensive, are skewing the data as it pertains to traditional Search campaigns, where keyword use is most common. This news comes as no surprise to most PPC managers, who have seen costs run as high as $50 to $250 per-click depending upon the industry. Clients often experience sticker shock as well when they are shown projected keyword costs, and their reaction is to understandably reel back in horror and flee the PPC enterprise.
After the mood has settled and nerves are calmed, I present clients with an analogy. If a stock broker were to come along and offer you Google or Apple stocks from 10-15 years ago, wouldn’t you buy it? The answer is “yes”, of course. I then ask them if that same broker were to offer you those stocks today at current prices, “Would you still buy it”. Those that don’t overthink the question say “yes”. The correlation then becomes clear. We expect that Google or Apple will eventually experience some loss; however, their forecast continues to look promising, and the present is as good of a time as any to get started, as costs will only continue to rise. Pay-Per-Click campaigns are no different. The longer a business waits to advertise, the higher the cost-per-click will be once they decide to jump onboard the PPC train, because while they were waiting, the competition didn’t hesitate to take advantage of the available market.
I advise clients to jump in with both feet and trust the experts. Our job as PPC Managers at 1SEO Digital Agency is to maximize a budget through creativity and best practices in order to produce the Return-On-Investment that the client expects. Certain costs are unavoidable as AdWords’ popularity continues to grow. However, quality ads, keyword selection, strategy and experience are the key components a good PPC Manager will employ to keep costs down and help grow your business.