| It's a sad fact that 90% of Pay-Per-Click (PPC) | | | | likely to click your ad. While there are no actual |
| and paid media campaigns fail. By failing, they not | | | | statistics that identify the true percentage, this |
| only don't turn a profit, they actually lose money. | | | | problem is recognized by all online marketers. |
| There are several reason for this: | | | | In fact, in 2005 Yahoo settled a class-action |
| Expensive Keywords | | | | lawsuit because it was stated they did not do |
| First, the most popular keywords are expensive. | | | | enough to prevent click fraud. Google, in 2006 |
| Google AdWords, in which marketers bid against | | | | settled a similar lawsuit for $90 million. |
| each other for keywords has gotten more | | | | Poor Conversion Rates |
| expensive as there are a greater number of | | | | Many marketers have dismal conversion rates |
| online marketers than ever before. | | | | from their marketing campaigns. The best |
| Some keywords, especially in very competitive | | | | campaigns often only convert 3% of their |
| markets, such as legal and insurance can run | | | | prospects. So, for example, a keyword costing |
| upwards of $50 each. This is just for one click, | | | | just $1 a click would cost almost one hundred |
| not a customer. So the cost of acquiring a new | | | | dollars to acquire a customer if the conversion |
| customer, given an overly optimistic conversion | | | | rate was one or two percent. |
| rate of 10%, may be as much as $500 for | | | | The Solution |
| someone marketing online. Many small companies | | | | The best solution is not to mess with paid traffic |
| simply cannot afford this. | | | | at all. While search engine marketing may cost |
| Increased Competition | | | | more upfront, the result is organic, free traffic. |
| As more and more companies turn to the | | | | Organic traffic from the search engines also tend |
| internet to generate leads and/or sales it's been | | | | to have a much higher conversion rate. |
| increasingly difficult to get your message heard. | | | | Plus, you never have to worry about click fraud |
| Many small businesses that once only competed | | | | or how much your advertising is costing you each |
| locally now have competition worldwide. | | | | day. |
| Click Fraud | | | | Once your site starts ranking on the SERPs |
| Click fraud occurs when an individual clicks an | | | | (search engine results page) it's cheaper to |
| online ad (PPC) with no intent to buy, just to cost | | | | maintain your listing than pay for traffic. |
| the advertiser money. Competitors are the most | | | | |