Why PPC effectiveness is falling in today’s marketplace
The introduction of AI into marketing strategies is transforming the industry. Many tools have become obsolete while new ones have emerged. At the same time, the market is becoming more competitive, forcing marketers to rethink their approach. And many of them are looking at the PPC effectiveness as a way to attract users.
Specialists using the pay-per-click model aim to keep the cost per click low in a highly competitive market. However, given the number of companies in a wide variety of niches, this is not always successful. As a result, costs are rising, and more marketers are abandoning PPC campaigns. But, there are ways to improve advertising effectiveness and optimise costs.
How to maximise the model benefits
One of the mistakes marketers make when using PPC is to focus solely on ROAS. The desire to get a quick ROI on your advertising investment prevents you from seeing the bigger picture. It would be more appropriate to focus on achieving strategic goals. In addition, metrics can distort the understanding of effectiveness because they evaluate the here and now.
Rising ad spending is not only due to increased competition but also to the opaque process of how Google’s algorithms generate cost-per-click. Marketers can limit costs by setting clear budget limits, which will help them control costs and minimise overspending. However, it is important to remember that a global increase in advertising prices is inevitable and must be factored into plans.
New approaches and formats
A useful tactic is to take a broad approach to your PPC strategy. You shouldn’t rely solely on this format. It’s important to increase brand awareness. The more users know about a business, the more likely they are to click on an ad. In this way, several strategies can work together to achieve a single result.
Particular attention should be paid to the role of search in the marketing funnel. There are a number of changes here:
- paid search is now at the top of the funnel;
- brands are using more meaningful keywords;
- this approach helps engage users in the awareness and consideration stages.
To keep up with current trends, Google Ads offers new ad campaign formats. These help to attract more leads in the early stages of the customer journey. Yet their effectiveness depends largely on the quality of the landing pages. If the pages do not provide the necessary information, users will leave the site, and the ad budget will be wasted.
Automation and artificial intelligence play an important role in implementing a PPC strategy. Nevertheless, experts advise you to track the dynamics yourself to understand the bigger picture. In addition, the ability to combine AI with professional expertise can be a competitive advantage.