Tuesday, January 1, 2008

Pay Per Click Marketing

Advertising investments of all kinds, from billboards to print ads to television spots to pay per click marketing, all share a common trait. They exist in the public eye for as long as a company is willing to pay for them. Stop paying, and they disappear. True, a print ad may continue to exist for a while after it runs (until the newspaper or magazine gets recycled, at least), and a television spot may get attention if it wins any awards (or winds up on YouTube). But a pay per click marketing campaign will simply vanish as soon as the budget is cut. This means that when a company reduces its advertising spend in this arena, it loses all of its exposure immediately.

What does this really mean? Well, for one, it means that figuring out the average per click costs of a pay per click marketing campaign makes sense because everything happens in real time. A pay per click campaign will begin nearly instantly after a company signs up and pays, and it will vanish just as quickly when the company ceases payment. In other words, there is a clear delineation of when a campaign begins and when it ends.

This delineation is important, because it excludes many other potential factors that muddy the waters when you try to apply this same ROI analysis to a campaign created by a search engine optimization company.