A friend of mine called and said, “I think I should finally create a web site for my business (she practices rolfing massage therapy) and I want to do Pay-Per-Click.” I thought to myself, “How do business owners decide that they need PPC?”
So, I asked her how she decided that she needs PPC. She said, “My husband (who is an attorney) has a web site; he’s been spending money on PPC, and it seems to help his business.”
Aha! She heard someone was doing it, and although she has no idea what it exactly means or does, she wants it for her business, with hopes that it will increase her client base.
My philosophy is that you don’t do any certain marketing effort in isolation. When it comes to a sound Search Engine Marketing strategy, you need to look at both organic (natural) Search Engine Optimization and Pay Per Click and what each one can do for you.
On the one hand, since 70% of web users click on organic results, you want to ensure that you rank high enough to appear on 1st page of a search engine, unless you happen to be in an extremely competitive category.
On the other hand, even if you have high rankings in natural results, you may want to complement those with a PPC ad on the 2nd page to get additional visitors for a lower click price. Or, use PPC seasonally, to promote certain products during a holiday season, for example.
Often, business owners don’t know what their monthly SEM budget should be. So, how do you decide what percentage to spend on SEO vs. PPC, and what your overall monthly SEM budget should be?
Well, the simplest way to start is to decide how much money you are willing to spend to acquire one new client. What is your average sale, what is your average profit per sale, and how much marketing dollars you are willing to spend to get that sale?
So, to go back to the case of my friend, the rolfing massage therapist and her attorney husband – he may be willing to spend $25 in PPC to get one deal that will be worth several thousand dollars, but would she be willing to spend $25 to get an average sale of $100? Or would her marketing dollars be better spent somewhere else?