Google AdWords PPC Financial Impact
Balancing Google AdWords Pros And Cons
Google AdWords has a number of benefits, including offering quick results for the right price while allowing users to maintain complete control over their campaigns. Such is AdWords popularity, there is also a lot of support on the Internet should users need any assistance with setting up their campaigns. However, like any online marketing method, PPC has its disadvantages, many of which revolve around the cost.
As you will see below, the budgeting facility hides behind the big advantage of giving users control but it is actually at the core of many drawbacks with the system.
Google AdWords Budget Issues
If businesses decide that they want to be in the premium positions on a page they will need to spend the most money. This creates limitations for smaller businesses or any that don't have the deep pockets of their competitors, forcing them to settle for second, third or fourth best and beyond.
Although the money side of AdWords is set in advance, if budgets are exceeded by even a few pence and users do not notice and pay, Google take extreme action that is detrimental to the business in both the short and long term. They will blacklist the company and remove their website from their natural and PPC rankings, wasting any SEO work that has been undertaken.
The problem with having a daily budget is that it means putting a cap on exposure before the campaign has even started. Once the AdWords budget has been reached the advert simply disappears for the day and how many visitors obtained is dependent on the overall budget and agreed cost per click. If a user's daily budget was £10 and the cost per click was 50p, they would get a grand total of no more than 20 visitors. This really emphasises Google AdWords lack of cost effectiveness.
Continuing with this example, there is no guarantee that any of those 20 visitors would be genuine leads. Competitors can easily sabotage budgets by clicking on ads to view the landing page but leave immediately so the account holder is charged but gains nothing. This is considered bad practice and Google do put protocols in place to limit it but they cannot eradicate it completely.
It can also be the same scenario if a visitor clicks on an advert by mistake or if they find it is not what they are after. The click is essentially wasted but the account holder will still get charged. This highlights the importance of setting up PPC campaigns that are not confusing and do not contain ambiguous terms.
Still More Google AdWords Disadvantages To Come
AdWords can be great for delivering a sudden injection of visitors to the website, but should not be seen as a long-term solution because of the amount it can cost to deliver one genuine person. With this in mind, the conversion rate needed to make any returns on PPC can be remarkably high and difficult to achieve.