For the past couple weeks, we’ve been talking about the drawbacks to PPC advertising. This week, we’ll cover the third of 3 major problems. Here it is…
PPC Drawback #3: Lower conversion rates. The people who do click on the Google ads, tend to convert at a lower rate than those who click on the organic resorts. Why is this? Think about your own shopping behavior. When you first start shopping for something, you’re likely to be in a research mode. You may not even know what to call the thing that you’re looking for. People usually start with a really broach search. Things like “used cars.” Advertisers tend to want huge amounts of traffic to their sites, so they choose to have their ads show up for generic, broad phrases, like “used cars.” While that may get more people to your site, you’ll likely getting people who are just beginning their used car search. As you progress through your shopping timeline, you’ll probably find a car that catches your eye and eventually start searching for more specific things like “2006 Toyota Tundra.” Progress a little further in your shopping process and you might even narrow it down to “Black 2006 Toyota Tundra.” Not very many advertisers choose to trigger ads for phrases like that. Since only a small handful of people look for something that specific, they figure that it’s not worth it. Unfortunately, the advertiser that just goes for the big fish with a big phrase like “used cars” winds up paying a lot more, because the phrase is competitive, they also find that they’re just helping educate car buyers who will eventually move on to another site for their purchase.
How can you avoid this scenario? Be specific. Don’t even waste your time on the broad phrases. They’re just not worth your money.
I hope that helps. If you’d like to talk about some of our other strategies to lower your ad costs while increasing your sales, give us a call. Talk with you soon.