Finding the “Sweet Spot”

Working with various clients over the years, we understand that not everyone wants to utilize the same strategy in pay-per-click (PPC). Each client has unique marketing goals and what works for one client, may not work for another. This is based on various factors, such as number of competitors, demographics, and type of product/service sold. Some clients may only be interested in conversions, while others may be interested solely in maintaining a top position across all campaigns to increase brand visibility. Despite differences in the perception of the value of a PPC strategy, the most important thing is finding what’s profitable for each unique client.

When aligning a PPC strategy with marketing goals, it is imperative that the client understand the impact of said strategy. For example, if a client is set on maintaining a top position across all campaigns, it is important that we as marketers understand the “why” behind such a strategy. We have observed that some clients believe that if they are in the top position every time, this will lead to the most conversions and the most traffic to their site. While that may be true in some cases, it also may lead to other unintended consequences, such as increased costs and a lower ROI. This can result from customers who are either in the problem recognition or information search stage of the purchasing cycle and are not close to making a purchasing decision. Therefore, while they may click on your ad because you’re in first position, they may not be interested in buying at all. Yet, you’re paying for that click.

With that said, the clicks add up and so do the costs if the client is misinformed. While conversions may increase overall, the magnitude of the increase in associated costs may outweigh the benefits from an increase in conversions. As a result, we do our best to inform our clients of the potential consequences of their decision and suggest that it’s all about finding that ideal position. That is, where you can achieve that perfect balance of costs and conversions in order to maximize ROI. Ultimately, it’s all about finding that “sweet spot.”

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