Globalization is generally the term giving to markets and business that aim at becoming worldwide expanding the possibilities of who can buy and sell into that market. Of course, there are going to be many positives and negatives to globalizing something such as a business – the same principles can be applied to pay per click advertising campaigns. Remember that a PPC campaign can be linked very closely to the advertising sector of a business…
So, should you be thinking of globalizing your PPC campaign? Here are some points for and against the idea:
- + Increases your market opportunities – Above anything, globalization enables more people to view your PPC campaign. You may think your target market is in a small town in a certain country. However, you might actually find your target market is more global than location specific.
- – Need larger budget to cope – The main problem that businesses hate about globalization is that it costs a lot. It is a big decision to globalize anything so it must be weighed up whether the initial and future costs are worth the extra revenue globalization brings in. For PPC, this will involve looking at what competition there is for your market globally and how the cost per click will reflect this.
- + Cheaper resources – The above negative point points out that you might need a larger budget. However, for different locations, the competition might be super low. In this case, don’t think of it as a low CPC but as a niche location – I like to create this new term for PPC users. A niche location is a location you are targeting where PPC advertisers have little competition for. The main reason for this might be because the location does not convert well for your category of campaign. However, there might the chance that advertisers have not tried to advertise there full stop. In this case, you could be potentially getting extremely quality traffic at a very low price.
- – Pricing matters – Unfortunately, as you globalize your campaign, the pricing of your products/services and what you offer the web user matters more. This is because if you globalize, you are not only competing locally but globally too. Think of it as a special range of soup that a company wants to advertise with PPC – if they advertise locally, they can use a USP (unique selling point) such that they are the only soup in the local area to be gluten free etc. However, as soon as the campaign goes globally, the chances are that there is another product with the same USP. Therefore, the most effective way for PPC campaigns to stand out globally is generally to lower the price of the product/service or offer more to the web user. However, this, in turn, will reduce the profit margin on your overall campaign.