Is PPC Like Renting Traffic?
I read somewhere on another blog (don’t remember where now) that running a PPC campaign is like renting traffic. The analogy makes sense, but if you think that renting is a bad thing then think again. Renting traffic can actually pay off.
There is a difference between renting and owning, however. While PPC is like renting traffic, SEO is more like owning it. Here’s how they differ.
When you spend $100 on a PPC campaign and receive 100 visitors to your website then you’ve paid $1 per visitor to read your offer. But let’s say that you close 1 in 10 of your visitors or, to say it another way, you have a 10% conversion ratio. Each sale costs you $10. But you only pay for that sale whenever you have your PPC ads turned on. Stop the advertising and you stop the sales and the traffic.
Measuring ROI is a different thing altogether. Let’s say you sell pink widgets for $20 each. For each sale you pay $10 to obtain you also earn $20 to close. But that’s not your profit. You also have material costs. Let’s say it costs you $3 to make your widgets. Your profit is $7 for each widget you sell. There’s your ROI.
SEO works a little differently. Let’s say you pay an SEO professional $500 to optimize your website. Your conversion ratio is still 10% and let’s say that you get 1,000 visitors from the search engines each month. That means you make 100 sales every month and at $20 each you earn $2,000 on your search engine traffic the first month. That’s an ROI of $1,200 the first month and $1,700 every month after that.
Obviously, the money you can earn from SEO has a lot greater potential than the money you can earn from PPC. But, realistically, you have to wait 2-6 months for that SEO traffic to become profitable. If that $500 investment doesn’t start paying off for 6 months then you do not realize an ROI for 6 months on your investment whereas you can realize an ROI on your PPC the very same month. It’s a lot more immediate.
Question: Would you rather earn $70 additional income today or $1,700 additional income 6 months from now?
Consider that your $70 ROI will add up to $420 over a 6-month period. If you re-invest that money into other vehicles then $420 could turn into more. So don’t knock the lower numbers today that you can earn from PPC. I’d recommend that you utilize both channels – PPC and SEO – for your online marketing efforts.
BTW, the numbers in these examples are not reflective of actual sales and ROI numbers. They could be higher or lower for both PPC and SEO. Some companies actually earn higher ROIs from PPC.
United States (US): New York, Los Angeles, Chicago, Houston, Phoenix, Philadelphia, San Antonio, San Diego, Dallas, San Jose, Austin, Jacksonville, San Francisco, Columbus, Fort Worth, Indianapolis, Charlotte, Seattle, Denver, Washington, Boston, El Paso, Detroit, Nashville-Davidson, Memphis, Portland, Oklahoma City, Las Vegas, Louisville
United Kingdom (UK): London, Birmingham, Leeds, Glasgow, Sheffield, Bradford, Liverpool, Edinburgh, Manchester, Bristol, Kirklees, Fife, Wirral, North Lanarkshire, Wakefield, Cardiff, Dudley, Wigan, East Riding, South Lanarkshire, Coventry, Belfast, Leicester, Sunderland, Sandwell, Doncaster, Stockport, Sefton, Nottingham
Canada: Toronto, Montreal, Calgary, Ottawa, Edmonton, Mississauga, North York, Winnipeg, Vancouver, Scarborough, Québec, Hamilton, Brampton, Surrey, Laval, Halifax, Etobicoke, London, Okanagan, Victoria, Windsor, Markham, Oshawa, Gatineau, Vaughan, Kitchener, Longueuil, Burnaby, Ladner, Saskatoon
Australia: Sydney, Melbourne, Brisbane, Perth, Adelaide, Gold Coast, Canberra, Newcastle, Wollongong, Logan City, Geelong, Hobart, Townsville, Cairns, Toowoomba, Darwin, Rockingham, Launceston, Bendigo, Ballarat, Mandurah, Mackay, Bundaberg, Bunbury, Maitland, Armadale, Rockhampton, Adelaide Hills, South Brisbane, Hervey Bay
Magento eCommerce News
What is this Magento platform all about? Is the sentence, “Magento is the eCommerce technology that is set to live for ages”, correct? Popularity ratio attached with this platform answers this question. Before the year 2008, no developer had ever dreamt of using an eCommerce development platform
Companies offering Magento development solutions have the right to change their policies, but not without notifying their customers about the changes they make in support and maintenance terms and policies. There are several factors that lead to the revision of the policies. This might even affect
Magento is the leading eCommerce platform with multitude of features and benefits. The online market demands Magento websites to get improved exponentially. Meeting the fastest growing online market’s demand, helps businesses to receive desired ROI. Using this platform might be difficult or complex
If you own an online store, this article would help you in making its performance better. There might be several aspects responsible for poor or weak performance of your Magento website. Being an online store owner, you should make sure to get the best out of the Magento solution you paid for.
In the furious eCommerce competition, internet has turned into a platform for several online stores serving customers across the globe. Shopping habits are also changing with the availability of several varieties of products with best deals and discounts. Isn’t it great that to buy desired
With PSD to Magento conversion, web service providers’ offer e-commerce solution with better capabilities and functionalities. In the process of conversion, Magento adds interactivity to your website through the PSD design you provide. Offer a design you wish to implement and professional web
Marketing process holds high priority in business. This year is called “the year of innovative marketing strategies” and video marketing is one of such invention that was added to the inventions’ list. To impress a modern customer is not less than a strong challenge. It is the time your business
“Content”- is not just a word, it’s the major aspect affecting eCommerce industry. The ever changing market trends needs to be addressed. Engaging and interactive is considered the key to getting great visibility among popular search engines. Focusing on the conversion rates, eCommerce giants have
Online stores – simple, cost effective and one–stop-destination for all the shopaholic present around the world. To fulfill the complex requirements of the active shoppers, eCommerce business owners have to continuously monitor the performance of their online stores. Thus, by continuously looking
Magento is one of the most popular eCommerce development platforms trending nowadays. The era of online shopping is the revolution brought by Magento store development concept. Earlier, developing reliable and secure online stores was a tough and tedious task as it required many aspects into
eCommerce stores have made the shopping task simple and easy. There are few steps to take for completing the checkout process successfully. This process is a crucial step for any eCommerce store. Being the final step, it holds ample significance. Purchasing online is the latest shopping trend.
Magento is the open source content management system basically used for building eCommerce websites and applications. There is no doubt that eCommerce websites have been performing well in this world of internet. Building up an online store and managing it well is not at all enough. To get fair
Magento is one of the best eCommerce application development platform that can help web development companies build excellent eCommerce solutions for enterprises seeking customized eCommerce application for the success of their online business. Magento 2 is the latest version of Magento offering
In today’s eCommerce era, Magento is the star with myriads of features for web developers as well as customers. Over time customers, shopping online, have started expecting more from the online stores owned by eCommerce giants. Magento being the perfect platform for building eCommerce store offers
Each year brings something new and beneficial in all aspects of life. eCommerce market is no exception and it can feel these novelties and latest trends that are directly associated with these technologies. With previous year’s trends i.e. personalization, localization, etc. let’s have a closer