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Pay-Per-Click advertising puts you in control

Cedric ChambazCedric Chambaz, SMB Marketing Manager, Microsoft Advertising


Cedric Chambaz, SMB Marketing Manager at Microsoft Advertising, is responsible for providing the advertising tools to help small and medium-sized businesses reach a high quality, relevant audience; and so drive sales.


Question: Having run a small business for 10 years, I finally invested in a website last year. I’m pleased with the way it looks, but so far I can’t say it’s repaid what it cost to set up. People have suggested I should spend a bit more on Pay-Per-Click advertising, but I’m a busy person and that all sounds rather complicated, time-consuming and costly to me. Can you advise me on what it’s all about and whether it would help me bring in any more business? - John, Brighton

Answer: Hi John. I’m often asked this question and my answer is always that Pay-Per-Click (PPC) advertising (also sometimes called search marketing) is a must if you want your website to be visible to potential customers.

If you had a shop buried somewhere in the backstreets, you wouldn’t expect customers just to stumble across it. The same goes for your website – an estimated 2.79million businesses now have one, so customers are unlikely to discover yours by accident - you must help them find it.

Dispelling the myths
I’ll tell you how PPC can help you achieve this, but first let me dispel some myths we’ve culled from research among small businesses in the UK.

Of 400 businesses we questioned, 44% of those not doing search marketing believed it was too time-consuming; 56% thought it too expensive; and 33% too complicated - indeed just the concerns you’ve raised.

Ironically, 76% of those who were promoting their website on search engines saw an immediate increase in sales. So let’s start by solving your reservations:

The first is that PPC is time-consuming. Many of our research respondents believed it would take a day or more to set up a campaign. In reality, from opening an account to seeing it go live can take as little as 10 minutes.

Another myth is that it’s expensive. In fact, you can start by investing as little as 10 pence per click or a monthly budget of around £5. As a matter of fact, one of the big advantages of PPC is that you decide how much you want to invest and always keep control of your budget: you can turn the tap on or off depending on the traffic you want to generate.

As you suggest, many web owners are put off by the idea that PPC is complicated - the truth is you can easily manage your account from your desk and you’re likely to see immediate results from a few simple keywords.


So, what is PPC?
The best way for me to explain PPC is by analogy. As with many tasks, the internet allows you do things you did before, only better. So, instead of reaching for directories like the Phone Book or Yellow Pages to find a supplier - like our parents did - we’re more likely to use an internet search engine.

With directories, customers flick to the appropriate category to find a supplier from a list of one-liners, but they’re more likely to be drawn to a display ad which gives them a bit more detail. A similar thing happens with search engines.

Customers enter a keyword like ‘florist’ (equivalent to flicking through to the right category). They are then presented with search results (similar to the list of one-liners). But they also see sponsored adverts more prominently displayed; usually at the top of the screen and down one side (equivalent to the display ads). Here too, the more prominent your ad is on the screen, the more likely the customer is to choose your product or service.

So, what advantage does search marketing have over printed directories from the advertiser’s perspective?

Firstly, instead of paying a one-off upfront charge to appear annually, with PPC you only pay when someone clicks on your ad. Let me re-emphasise that. It’s an incredibly low-risk form of advertising; because you only pay each time someone actually chooses to click on your ad. That’s why it’s called “Pay per click”. So you only pay for what are, effectively, self-qualifying customers who are interested in your service.

After all, a user who searches for “florist” clearly has some sort of interest in finding a florist. And they would only choose to click on an ad saying “12 red roses for £25” if they genuinely wanted to buy flowers (rather than, perhaps, looking for a job in a florist’s). So, when you pay for a customer’s click, you can be sure that they’re in the mood to buy what you are offering.

Secondly, unlike annual directories, where you only know at the end of the year if the entry had paid for itself in terms of new business, with PPC, you can not only control your costs, but also monitor on a daily or even hourly basis the success and return on investment of your campaign. It means you can instantly adapt your online strategy to suit your type of business.

If you run a Pizza delivery business, for example, you might choose to focus your campaign around Tuesday and Wednesday evenings when there’s football on TV. You can even test different ads to find out which one performs best - try pitching “Pizza for pepperoni lovers” against “Give mum a break tonight - let us do the cooking!”.

Getting started
Having explained why I think PPC will be a good investment for you, let me tell you how to get started.
Signing up for PPC is easy:

First, create an account online with the search engine platform on which you wish your ad to be featured. Ours is called Microsoft adCenter and it not only reaches a large proportion of web users from a wide demographic base, but also allows you to target by location, age, gender and even time of day. Your ad will be shown to internet users who have searched using one of Microsoft’s websites like live.com, MSN, Windows Live Hotmail or Messenger.

Next write your ad. Keep your ad copy short and sweet so as to make it memorable. Think carefully about who you’re trying to reach so you can get the maximum bang for your buck. Remember to use the same language as your audience, to be compelling and to add a clear call to action, like a promotion for instance.

Lastly, enter the keyword(s) that best describe your product or service. Remember, every day millions of people type keywords into search engines to find the products and services they’re looking for, so think in their terms. Microsoft’s adCenter has a tool to help you select keywords most relevant for your business. For example, if you’re a florist in Liverpool, don’t just enter “florist” as you’ll be competing with big national players; instead, try “Liverpool florist” or “Liverpool wedding bouquet”.


The bidding process
Having set up your account, written your ad and chosen your keywords, it’s time to start bidding. With PPC advertising, the idea is that you ‘bid’ for your chosen keywords. You decide upfront the maximum cost you’re prepared to pay each time someone clicks on your ad. Your final position on the page will primarily depend on how much you’re prepared to pay for a lead, compared with other bidders. Whoever bids the most for a keyword (e.g. “florist”) will appear at the top of the page (and therefore stand a greater chance of being seen and clicked).

Whilst being top is good, you don't always need to be there to get your ads to work. Prices per click range from as low as 10p up to several pounds for very popular search terms. Another good point for low budget advertisers is that search engines factor in the quality of your advertisement. Search engines exist to provide the most relevant results to their visitors, and clicks on your ad are a fair indicator that what you offer is relevant. As a result, the next time a search occurs on your keyword, you could outperform advertisers bidding more but with a historically less attractive advert.

And that's basically all there is to it: bidding on relevant keywords with a compelling advert driving traffic to a relevant website.

Go for it!
I hope this helps convince you that PPC is an excellent way of getting your ad in front of people who are genuinely interested in what you have to offer. Why not give adCenter a go - and start converting clicks into customers?

Remember, with PPC you only pay for results - if nobody clicks on your ad, you pay nothing. It’s as simple as that. If they do click on your ad, you’ll only pay up to your nominated amount. It all adds up to a better return on your advertising budget and it means you’ll always be in total control of your spend.

And lastly, don’t be put off by thinking it’s time-consuming or complex - PPC is very simple and can take as little as 10 minutes to set up a simple trial. As an effective form of advertising, it has changed the way businesses market themselves. With online purchases surging enormously - and with 50% of those purchases preceded by search engine research - there’s never been a better time to use PPC.

But don't just take my word for it. Take a look at our website: tryadcenternow.co.uk, where you’ll find free £30 credit to get started. Our dedicated UK-based support team will help get you under way and answer any questions you may have, all free of charge.

Good luck with your new website - I hope this will help you attract more traffic.


--Cedric


Related Links

externalYou’ll find a step-by-step guide to managing your campaign at the adCenter Demo site
externalFor the latest tips and tricks on campaign management and tracking, go to: adCenter Community blog
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