It is ideal for smaller businesses because it is simple, cheap, highly effective, testable and there are no rules to stop advertisers advertising on it. It is not as if you have to pay a massive start-up fee, or already have to be a big time advertiser. A college student may log on during his/her lunch break and set up an account. It is true that there is a lot of competition, but there is not nearly as much competition as there is on search engine results pages. Plus, a PPC advertiser can change a few things to be sure that he or she ends up with an advert in a prominent position.
What is PPC advertising?
PPC advertising is a form of affiliate advertising. The person who creates an advert will have that advert seen by hundreds/thousands/millions of people. The people who click the advert and follow it through to the landing page are the ones that the advertiser pays for. That is why it is called Pay Per Click (PPC). The advertiser can have the advert seen by millions of people, but only needs to pay for the ones that click the advert.
How does PPC work?
The potential advertiser sets up an account with an affiliate network. Google AdWords is good for beginners. The network will probably have an advert builder, but if not then the advertiser will have to create adverts himself/herself. Once the advert is built, the advertisers must decide what keywords will be associated with it. These are the keywords that will make the advert appear if a person types them into his/her search engine. The keywords also dictate what sorts of websites that the adverts are run on.
Once the advert is complete and the keywords are entered, the advertiser must decide how much he or she wishes to pay for each click (relating to each keyword). The advertiser must also set if he or she wishes to have a daily limit on how many clicks are paid for. Once the limit is reached, the adverts are taken offline. Obviously, the more you are willing to pay for your clicks then the more prominently your adverts are displayed.
It allows small businesses to gain traffic very quickly
The fact is that you may be receiving traffic as soon as ten minutes after completing and uploading your adverts. The bigger and better networks are very good at getting your adverts online quickly, and if your advert has targeted some good high-traffic keywords, then there is little reason why traffic should not be appearing within twenty four hours of uploading the advert. Plus, if you are willing to pay a little bit more for your clicks then your adverts will sit in a more prominent position and will subsequently receive more clicks (traffic).
A small business may gain traffic for very little money
A well optimized PPC campaign may attract very cheap traffic. The correct combination of keywords may lead to a very successful and very cheap PPC campaign. The great thing is that certain keywords are worth less at certain times of the day. For example, at 3am in the morning you will have very little competition for your keywords, so the “bid” price (as it is called) for each keyword is far less. Your adverts will appear more prominently for a lot less money.
There are times of the day when your competitors are going to invest more money into. For example, if you are targeting young mothers, then there is little point in running adverts between 8am and 9am because they will be on their school run. On the other hand, adverts placed for 8am and 9am are going to be cheap, and you will still gain a trickle of cheap traffic.
There is also the fact that your competitors may set smaller daily budgets, and once their budget has been reached, their adverts go offline and you receive their traffic. The good thing is that this may happen at any time (it is a matter of luck above anything else). This means that if you set your keyword bid prices at a permanently low level, you will (at some point) pick up a bit of traffic that your competitors have missed.
PPC allows smaller businesses to compete
Only way smaller businesses can compete when search engines are tied up with the big boys. Middle sized and larger companies are going to spend a lot of time on their SEO, and are going to crowd smaller businesses out of the top Google search engine results position. With PPC this is not going to happen as much. There are times when your competitors are going to be bidding a lot more than you, to the point where your adverts are scarcely ever seen, but this often only happens around the holiday seasons.