Not Making Money From PPC? Here’s Why 20 Jun 2013
In one sentence, the reason why PPC is the best form of advertising online is because it is the most profitable for advertisers. However, this doesn’t mean it is easy to make money with pay per click advertising – it simply means when you do make money, you make the most with PPC when advertising online. For most advertisers, they are gaining an advantage from PPC. But, unfortunately, there will be some advertisers that will struggle to profit from PPC and cannot understand where they are going wrong. Well, threat not my friend. Here are some reasons why your PPC campaign is failing.
Your Not Being Cost Efficient
The main reason why advertisers don’t make money from PPC is because their costs are too much. In essence you want the cost of running a campaign to be as low as possible while making the revenue as high so your profit margin is as large as possible. Here are some potential reasons why your costs are high:
- You are bidding too high for keywords. Use Google’s Keyword Tool to get an idea of what level of competition your keywords are at. This will help you gain a better perspective on how much your CPC should be. However, you will need to find the balance of CPC over ad impressions. The lower the CPC, the lower the ad impressions and quality of site you advertise on. The higher the CPC, the higher the ad impressions, quality of site you advertise on and therefore higher the CTR and conversion rate.
- Your budget is too large. It is possible to overuse PPC. For example, a campaign that is trying to advertise a local new shop does not need to spend thousands on advertising worldwide. Make the budget reflect what you are advertising. For most campaigns, you can slim down the budget without affecting results.
- Your keywords are too expensive. The problem may occur from the fact the keywords you have chosen are too expensive to bid for. For example, an article looking at the most expensive keywords saw the highest keyword price was $55! Try to find niche keywords if you are bidding too much for your current keywords and if your campaign is not affected by the change of keywords in a negative way, stick with it.
Your Landing Page Is Not Good Enough
The aim of a landing page, from a recent article looking at the optimisation of landing pages, is ‘to convert your traffic, produced from your PPC text advert mainly, to a conversion of your choice’. Therefore, make sure your landing page is designed so they gain a conversion from the web user and keep them enticed. Have a look at your landing page now. Is there too much text? That may bore the web user and make them exit the page. Does it get to the point fast? You need to impress the web user within seconds to keep them on your landing page.
The reason for not making money through PPC can be one to many because there are so many variables in a campaign that can affect the success of it. The advert’s contents itself or the product/service you are advertising might not even be that good! Therefore, it is a good idea to sit down back at square one and look over your whole campaign if you are not profiting from PPC. Finding the problem is the first step. Rectifying the problem is to come next…