PPC – Still Effective?
In my SOMA class today this subject came up and I think after considering the topic thoroughly it’s an important one to talk about. Considering that Money Talks and many budgets (or “Google dollars”) have been frozen due to the economy and fragile financial outlook with the Dow up and down like a yo-yo, as IM professionals, it merits some discussion so I am posting it here for your consideration.
First, we know that specifically targeted, well thought out PPC campaigns often can jumpstart a new site or service. Second, we also agree that we have all used PPC and have had mixed results (this is important since often we are spending some else’s money). So, although PPC is important in the 
traditional SEO/SEM realm, (and despite Google’s ongoing and changing statements in support of them) CTR reports are revealing that for the dollars spent, this is not very efficient way to allocate marketing budget dollars. Also, it’s important to know that this should not surprise us since suspicions of this are nothing new. In fact, many who specialize in PPC campaigns have been noticing this for some time, like Don Lim who wrote a spot on article on this back in November 2007 entitled Google AdSense losing its effectiveness?!
Of course, fast forward to where we are today in the biggest economic down turn most of us have ever seen coupled with executives sweating over budgetary restrictions regarding marketing efforts, and with our clients best (and future) interest in mind, look at this without Google rose-colored glasses on. New behaviors by consumers are requiring the status quo to think outside the box of “clicks & eyes” marketing limitations and begin changing to meet new social consumer habits. “Going where the customers are instead of expecting them to come to you”
Push advertising is dying out and has been for some time, (along with hard core selling, call centers, telemarketing, survey based product development, etc.) This has nothing to do with ‘new technologies’ replacing an old one. It’s that our social habits as consumers have changed, in fact, customers have already changed the way they educate themselves and each other, the way they want to be treated, and most importantly, they way they choose now to interact with product or services providers (our clients – those that pay us – which puts food on our tables).
With this social behavior evolution changing already, an adapted, balanced approach to spending marketing dollars is going to be expected from corporate leaders. No longer are they going to tolerate spending tens of thousands a month exclusicely on PPC campaigns and comparing their reports with those of a competitor who is surpassing them. Bottom line – most, if not all companies, are not going to get any new or additional monies so funding will have to be re-directed from other marketing areas for social media initiatives. Additionally, most CEO’s are looking at the new social metrics and realize the ROI is no longer click through but customer engagement, measurable in contribution and participation, not ‘dollar per click’.
So, for discussion what are you doing to make balance your spcifically targeted PPC campaigns with a public social presence for your clients? How are you designing home for the company where existing customers can interact and attract new ones for your clients? I am very interested in hearing your input on this important shift in our strategies in our clients best interest.
Follow Tim for all the latest on this subject here on our blog and on Twitter http://www.twitter.com/twmoore or email him any questions at tim@perspectiveim.com
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