What Kinds of Business That Use PPC Advertising
On Monday, we released a new infographic based on our own research on the industry that invested heavily in Google Ads last year, contributing to Google’s revenue of $ 37.9 billion in 2020. (Larry answered the research follow-up questions here.)
Following these results, we’d like to offer advice to advertisers who want or want to use Google Ads (AdWords). In short, what kinds of business has been so successful on Google Ads and other pay-per-click (PPC) advertising platforms? What types of characteristics make your kinds of business suitable for PPC?
Below are the five kinds of business characteristics that typically get good results and strong ROI from paid search marketing. If any of these fall into the company and are not yet involved in PPC, this marketing channel is worth investigating.
High customer life value
In some industries, the lifetime value of a new customer is so high that you can afford to pay a significant amount for acquiring new leads and customers. For example:
Dentists, physicians, etc. – As dentists acquire new clients, they can potentially be worth thousands or tens of thousands of dollars over the years, especially if they continue to refer more clients. Dental marketing is rewarded.
University and Online Degree Programs – Phoenix University, ITT, and DeVry spend a lot of time on PPC. Because new students have a lot of value in the education process. The same applies to other types of training programs.
Cable and Internet Providers, Utilities – People tend to stick to one provider of telephone, cable, or Internet services and pay their monthly fees for long periods. Recurring services (such as subscription-based software) may fit the same model.
Higher profits from a single purchase may not be “lifetime value.” Consider the following relatively large ticket item:
Litigation – Keywords like “personal injury lawyer” are very expensive because lawyers can make a lot of money in one lawsuit. The margin is very high, even if the client only needs service in one case.
Repair work – Repairing some types of homes can be very expensive (roof repairs, new pipes, etc.).
Computer equipment – servers, copiers, etc.
Consumer electronics – These days, people usually make comparison purchases online before buying things like washing machines and dryers. The same goes for purchasing mattresses and large furniture.
Automotive – Used Car Franchise has been a huge success in geo-targeting PPC.
Hard to find products
If your e-commerce kinds of business deals with products that aren’t easily found by just stepping into Wal-Mart, you are probably a good candidate for PPC advertising. Often, search engines are used to find weird items that aren’t carried in many physical stores, such as unusual hobby supplies or unusual records. (One of the strange purchases we made recently was a bunch of empty perfume sample vials.)
A diverse array of products
Retailers with a wide range of products, including Amazon (which spent more than $ 55 million on AdWords in 2011) and eBay ($ 42.8 million), have had great success with PPC. Often, these retailers advertise with tens of thousands of keywords and bid on long-tail keywords or use dynamic keyword insertion to pay a small amount for each click. Long-tail keywords are less competitive and have lower cost-per-clicks (CPCs), allowing advertisers to make more money on lower-priced products.
The above Lee.com ad from a search for “Black Skinny Jeans” almost certainly uses dynamic keyword insertion to feature the exact search phrase as the headline. (Common ad text is a hint.)
Seasonal or event-based values
Florists love PPC because most people don’t send flowers very much. Find a florist at the last moment you need to send ikebana for a funeral or anniversary. That’s why last year 1-800-Flowers spent more than $ 30 million on Google ads. Other businesses that can use PPC to attract seasonal or event-based traffic include:
Costumes (focus on the time you spend on Halloween!)
Doesn’t it sound like you?
Note that it is not just these types of businesses that can benefit from PPC. In fact, almost every kinds of business can use PPC. Simply find targeted, relevant, and intent keywords that drive affordable leads and sales.
However, if any of the above features apply to your company and you have not yet considered search engine marketing, you should consider investing.
And if you haven’t checked out the full infographic yet, there are all 10 industries and the top 5 Google advertisers in each industry (click to enlarge).
Learn more about Pay Per Click Company WordStream and how it can meet your PPC needs.