Last year, across industries, 73% of companies increased their digital spend. This, compared to just 21% who increased their offline (traditional marketing) spend, suggests a dramatic switch in focus towards digital channels.
This trend is logical since it reflects the growth of internet usage: with 87.9% of the UK population classed as internet users in 2016, this was up 1.7% on 2015.
The Best Digital Channel for ROI
While most marketing leaders tend to agree that digital is becoming increasingly important, many still find themselves overwhelmed by choice when it comes to selecting which digital channels to invest in. Email, social media, search, online advertising, website UX – each has its place, their respective pros and cons, and none of which are mutually exclusive. However, at a time when more and more marketers are coming under pressure to demonstrate the return on investment of their activities, one channel shines above all others for its ability to be measured and attributed to commercial results. That channel is Pay Per Click (PPC). Indeed, in a recent survey, 50% of marketing leaders rated PPC as “good” for its ability to measure ROI – better than any other digital channel.
What is PPC?
Pay Per Click refers to ads that appear in search engines. As the name suggests, advertisers pay per the click and as such often only tend to bid on keywords relevant to their products or services. In most cases, there is a direct correlation between keyword popularity, competition, and cost.
How PPC is Directly Attributed to Sales
While clicks on PPC ads that don’t directly result in a sale are certainly not worthless, one of the biggest advantages of PPC versus other digital channels is that results can be measured, at least in terms of direct sales, on a last-click basis. At a time when many are aware of the benefits of – but have not yet implemented – a more sophisticated fractional attribution model, this is useful.
A difficult Channel to Manage
PPC can be analysed to a high level of granularity. However, it is a complex and dynamic field. With growing competition for keywords, nuances in strategy needed across the different search engines, and continuous updates to search engine algorithms, it can be difficult to manage PPC campaigns effectively in-house. Whether you’re just starting out on your PPC journey, or are looking to leverage this channel to greater effect, get in touch with Factory Pattern today to see how we can help!