Pay-Per-Click: Business to Consumer
What Goes Into Pay Per Click Business to Consumer
E-commerce or Business to Consumer marketing is heavily dependent on pay-per-click advertising. On average, a business to consumer company will utilize 5-10% more traffic from PPC compared to their B2B counter parts. This will naturally divide the traffic online quite clearly between the two market shares, in effect making it easier to find your personal target audience. But for now, large swathes of traffic can be easily brought right to your websites doorstep with a single click of a button. Granted each one of those clicks can cost you a decent penny depending on what industry you are in. Air conditioning unit for sale, for example, will most likely run any marketer between $40 to $60 per click depending on the different variables that are not only account specific but industry specific. We like to think that everyone is graded the same, but if there are different click through rates between the A/C industry and the pet food industry, there will always be different average cost per clicks.
The higher the click-through rate, the lower the cost per click. Why? Because if the search engine is gaining more activity through an advertiser’s efforts of putting up hundreds of ads (or one) and optimizing them over and over to the point where it is the optimal ad for that combination of search query/keyword/ad group, they appreciate the engagement that you as an advertiser created for them. The more engagement that is tracked online, the more likely it is that those people will find what they looking for, which goes down as relativity.
The second reason is that when you set a Max CPC (not to be confused with Avg. CPC), the search engines don’t set the CPC ahead of time, which are reliant on who has the best combination of three data points in live auctions through your CTR, Quality Score and Max Bid. So if you have a high CTR & QS, you get to pay less because those two variables are used to measure relevancy and relevancy will almost always trump the highest bidder.
Relevancy is something that is often thrown around quite a bit in pay per click. More often than not, it is mentioned alongside Quality Score because Google AdWords is the biggest PPC serving platform and they invented the whole premise of the score. The QS is a culmination of different factors such as how the landing pages, account structure and ads served work together. This score should in reality be used as a measurement tool and not so much as ‘what’ you need to improve. Over time you come to find out that Google will arbitrarily push people out of industries by downsizing quality score across the board. The most recent example was the tech support industry in Southeast Asia. Multiple different factors played part in the whole affair, but it is an effective way for Google to get its message across. If you have deep pockets, surviving a QS apocalypse is not too far-fetched.
For many e-commerce businesses, using these data points effectively and efficiently can save many a headache. For some businesses we’ve seen, the entire advertising budget goes to PPC and it sustains its own healthy environment with plenty of achievable expansion on the horizon in the form of mobile and shopping campaigns.
If your business to consumer strategy is struggling with its pay per click campaigns and you would like some assistance, don’t hesitate to contact us. WebCroppers has multiple experts in the field of Search Engine Marketing. We cover bidding modules such as PPC, PPV, CPM, CPA and the near future CPS. Even if you are a seasoned account manager, it never hurts to reach out for a different perspective or approach.
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