The PPC Bottom Line
Nowadays, the temptation for any business to undertake a pay-per-click (PPC) campaign, however expensive, is very, very strong. And why not? Google and a handful of other powerful search engines have gradually risen to near omnipresence in the online world. It seems like every day more and more people are throwing hundreds, sometimes thousands of their hard-earned dollars into the search engine fire pit, stoking the flame. If everyone else is doing it, why shouldn't you?
The problem here, of course, is that the logic of the crowd is often just as fallible as the logic of the individual. Make no mistake, our purpose here is not to discourage pay-per-click campaigns. Au contraire, we're all for it. What we want to warn you against is, with no foundation in search engine marketing (SEM), simply throwing your money away as kindling to the great PPC blaze. The truth is that, for many people, this fire gives out light, but no heat.
The number PPC campaigners should be most concerned with is their ROI, i.e. their return on investment. This seems to make sense intuitively, but you'd be surprised to discover how many people give precedence to such factors as unique clicks and page impressions. These factors are indeed important, but they don't make you money. The ROI, in turn, is dependent on translating your PPC ads into conversions -- into new leads and new sales. Roughly defined, a "conversion" is any action that results in a successful sale or in the generation of a new lead. Thus, PPC campaigns are not run for the sake of advertising, they're run for the sake of increasing your conversions. This is business 101: if you're spending hundreds or thousands of dollars on a PPC campaign, but that campaign is barely returning enough money to cover its own cost, let alone to show a profit, then that campaign is not right for you. Don't succumb to the PPC hype or to the peer-pressure; look at your conversions, and make your decisions accordingly.
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Lastly, Raphi Salem speaks on Rocket Science of Search Engine Optimization, click here for the PDF file.