3 Paid Search Advertising Myths You Should Know

When it comes to paid search advertising, what should you believe? Paid search advertising, also known as Pay-per-click (PPC) and Search Engine Marketing (SEM) advertising, is often implemented with a healthy dose of skepticism. Because paid search is complex, competitive and often difficult to understand, paid search can be frustrating or even intimidating. It's natural to question these things when our money is at stake because we want something to show for our advertising investments.

The Internet is also constantly flooded with both positive and negative messages, information, tips, advances and stories about paid search advertising. While many of these sources make some good points or have truth to them, they often benefit, in one way or another, from alarmist headlines. So what should you believe?  Below are 3 popular myths related to paid search advertising you should know:

Myth #1: Most Internet Users Ignore Paid Search Ads Wasting Money

Although many paid ads are overlooked or ignored by Internet users, majority are Pay-per-click (PPC), meaning advertisers only pay when an ad is clicked. Overlooked ads cost nothing when you go with the PPC option, as opposed to PPM (cost per thousand impressions). Even if a small percentage of your ad impressions are noticed, you can rack up loads of clicks.

Let's focus on what matters, the ROI. While some products don't perform as well as others, the average ROI of paid search is somewhere between 9% and 25%1 This is an attractive rate when you consider the dynamic nature of paid search. You don't need anything to start a paid search campaign except money to fund it. That isn't the case with many other digital channels.

Myth #2: You Have to Outbid the Competition to Make Money

A prominent top spot on a search results page is tempting enough to encourage some advertisers to bid higher. That may not be the best strategy, though. Being in the top spot will probably lead to more clicks but a click doesn't always lead to a conversion or purchase on your site.

You don't have to be the first ad on the search results page to get conversions. In fact, some studies have found that the top spot can be detrimental to conversion rates. Showing up on search results pages is only one of many things you need in order to convert. You also need a good landing page, relevant ad copy, a good product or service and more.

It's better to focus on the big picture instead of getting distracted by your ads' positions.  There are a number of technologies that track everything that happens in PPC applications in order to optimize all kinds of figures, such as conversion rate and cost per lead. An example is isotree's Optimal Ad technology. Optimal Ad reduces ad spend by up to 40% while maintaining traffic volume, ensuring your money is well-spent

Myth #3: Search Advertising Works Well Every Time

The effectiveness of advertising can never be guaranteed, no matter what channel a business is using. Sometimes there are failures. It's best to understand the financial risk involved and know that optimization may not come as quickly as you would like. However, that being said, you can sometimes buy leads at a pre-determined price.

At isotree, we can predict the cost-per-lead with enough accuracy to set a price for the leads you need. All you have to do is decide if the investment is worth it.

At isoTree, our experts specialize in PPC, lead generation and SEO. Contact us today to discuss how we can help make your business or website succeed! 

 

1. "Direct Media Response Rate, CPA and ROI Benchmarks" April 14, 2015. MarketingCharts.com. Available Online: http://www.marketingcharts.com/traditional/direct-media-response-rate-cpa-and-roi-benchmarks-53645/

 

Jennifer Stainforth