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GGP 04 Apr 2016

COMMENT Pay-Per-Click: defining ROI Pay per click can deliver highly effective lead generation – but it can also rapidly burn a hole Return on investment is a through your pocket. GGP finds out how to make it work. basic of business. Pay-Per- Click or PPC, is an area where the line between success or failure is starkly drawn. Ineffective campaigns will rip through your budget, delivering nothing in return. But managed wisely, Google Adwords, Bing PPC, Facebook Ads and other PPC campaigns can provide a healthy Return on Investment (ROI). “We know first-hand how much you can spend on PPC and see only a very limited return,” says John Leary, managing director of G12 and G14 Installer of the Year winner, T&K Home Improvements. “When we launched our first campaign we hadn’t grasped the subtleties of PPC. “The agencies we were working with also probably hadn’t understood window and door retail. It was a recipe for a lot of cost and comparatively little return.” For those less familiar with the term, pay-per-click is an advertising model. Put very simply, advertisers can place adverts with search engine and some social media platforms, so that when people search against certain key words (it can also be called keyword advertising), an “Lots of companies are going to be fighting it out for the same search terms in the same areas” advertisement appears within the results that the search engine returns. Advertisers are only charged if someone clicks on the ad. This appears simple enough. But what complicates PPC is how search engines, for example Google and Bing allocate keywords to advertisers. This is done through an automated Ad Auction bidding system. Advertisers bid on the terms or keywords that they want. So for window and door companies it would relate to windows and doors or variables of that, for example ‘PVC-U windows’, ‘PVC’, ‘windows’, ‘low maintenance windows Northampton’ and so on. As the user submits their query, the search engines apply an automated calculation to work out which ads are displayed in which order and by which advertiser. John continues: “Lots of companies are going to be fighting it out for the same search terms in the same areas – if you want them, your competitors do. You enter a maximum bid for the search terms you want in the same way as you would in a normal auction. “But what complicates things is how Google and other search engines then decide which ads get placed. They don’t just go to the highest bidder. Doesn’t make sense? Well it does. “The whole model, including PPC, is based on the fact that we all use search engines to find stuff or research items that we want to buy – it’s why PPC advertising works so well. “But if Google just returned results based on what companies paid for them, regardless of relevance or user experience on those platforms, it would start to lose credibility. “This means that search engines are constantly walking a tight-rope, working to balance user experience with demand from advertisers for space.” 72 www.ggpmag.com April 2016 Continued on page 74


GGP 04 Apr 2016
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