When Does It Make Sense to Pay for Ads?

While we advocate using organic search, social media and bookmarking as well as free listings to the fullest extent possible before delving into pay-per-click, there are times when it makes sense to do so from the get go:

  • If you’re in a crowded or especially competitive market
  • Your products or services can be easily found elsewhere
  • Your business is expanding its services
  • To promote a specific sale, event or product
  • You have a monthly budget of at least $500 per channel

Paid Ad Campaigns on a Fixed Budget

Paid ad campaigns can be limited by cost per day or month and be run for a short time in a focused target demographic. We can help you get started for as little as $5 per day although we recommend a monthly budget of at least $500 per channel. It’s where we start to see the cost-benefit ratio begin to favor the benefit side of the equation.

With limited budgets it’s better to spend it in one place than split it between say AdWords and Facebook campaigns. This is because Google and Facebook will stop showing your ads once your monthly cap has been reached. Assuming a cost-per-click of $1.50 and 10 clicks per day – spending $250 per month on each channel means that your ad would only be shown for about 16.6 days per month! Putting the entire $500 into one or the other at least ensures your ads will be getting impressions for a full month.

Once the ads run for two to three months, the numbers can be evaluated to assess whether they have been effective enough to justify the expense.

The main goal is to drive qualified traffic to your site!

Simply increasing the number of people that visit your site does not necessarily translate to increased leads or sales. A high bounce rate usually means someone came to your site, realized it wasn’t what they were looking for and quickly went somewhere else. If that person clicked an ad, you’ve essentially paid for an unqualified lead. Word of caution: a ‘wide net’ approach can quickly become very expensive!