I believe that Organic search or SEO is not
going anywhere since it is obvious that consumers trust naturally higher
ranking websites that have more popularity, but is PPC, Pay
Per Click dying? Advertisers pay search engines per click on their ads. The
incentive for PPC doesn’t stand as significant when presented with other
options. In its earlier stage of utilization, PPC had more of a safety net
since it was new and untested. The
direct click would then give direct compensation, thus, little risk was involve
for companies. In the audiencebloom.com
article, Supply Demand PPC Dying Future Paid Search Ads, linked in the
Forbes.com article, marketers
explain how “the cost, appeal of ads, and competitive landscape of PPC have all
played a role in deteriorating its feasibility as a long term strategy.” It continues in explaining how Google’s
pricing for PPC has made it more costly for marketers. The article explains
that “at its inception, search marketers were able to choose almost any keyword
they wanted and could fit into a reasonable budget.” The article continues in its clarification of
how “today, Google offers a bid-based system, in which multiple advertisers can
bid a specific amount for advertising on KWR page of a given keyword.” In
essence, the more an individual bids, the better chance they will have at being
higher on the marketing latter.
Inevitably, this tactic makes PPC more expensive since the price is
driven up as a result of this bid based system.
This standing as the case, you are required to spend more money in PPC
while your conversation and customer values remain constant. Thus, the PPC
market is a, as stated by the article, a “break-even or net loss” tool.
The other fault in PPC stands in its competition
for ads. Since large and small marketers
want to advertise in the digital market, space is limited. Competitors are forced to go up against each
other in “scramble to the top of paid search results.” This, in essence, makes securing relevant
keywords for your business difficult.
Also, the allocation of resources toward acquiring top spots for these
key words puts stress on budgetary restriction for businesses and may strain
smaller group, squeezing them out of contention. The value results as minimal, since the types
of traffic generated through businesses when the pay for a PPC ad essentially results
in paying for a one “time customer.”
Interestingly, a glass half full outlook is presented when looking at
Bing’s and Yahoo’s combination of search engine algorithms and paid ad
management platforms. This option is
fascinating since Bing’s and Yahoo’s combined market share of search traffic is
less than one third of all search traffic generated. For smaller businesses or savvy powerhouses,
Bing’s and Yahoo’s partnership makes PPC more viable means to advertising. This is mainly due to lower cost and less
competition. There are, however, organic
forms of paid advertising like Vevo ads on Youtube.com, and ads on streaming
sites for each played stream or time within the stream are prevalent. These direct ads may market to consumers in a
more efficient and effect manner, since they may be placed in relevant
advertisement spots. An example of this
would be the advertising of a music award show before a music video plays on a
streaming website. This allows
advertisers to directly connect with individuals interested in their content.
In conclusion, although PPC campaigns are have
been more expensive since it first launched, it has actually gotten more
popular despite all of the competition. 72%
of businesses surveyed in 2014 said that they planned to spend more on PPC,
which is up 2% from the previous year.
