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Monday, December 05, 2005

Advantages and Disadvantages of Pay-Per-Click Marketing

ADVANTAGES

PPC is easier than SEO optimization - A great advantage to someone who does not have the time to learn optimization or the capital to pay for it.
PPC is direct market access - limited competition for people.
PPC is exceptional for short term specials, holiday promotion, etc.
PPC has no middleman to rely on for performance
PPC highly adaptive to market trends (e.g. last week "car" was hot - this week "cars" is)
PPC has a three day turn around no monthly waiting to produce results
PPC is highly cost effective (e.g. can produce 1000% return on investment)
PPC is highly effective in controlling market saturation (e.g. - out of inventory - immediate ads drop). Powering down your web site in SEO model can have long lasting negative effects. In addition, telling paying customers they need to wait 3 weeks for product inventory to catch up is bad business

DISADVANTAGES

Paying for the entry when you don't have the necessary products for the buyer (e.g. using "software" when the only software you have is a Windows 3.1) and few qualified visitors
Using informative phrases that offer significant clicks but possibly 95% of click are "free information seeking" only and never buy.
Quick loss of placement in favor of someone else willing to pay more than your budget allows.
Stuck with the model - when the search engine adapts to a new scheme you "must" meet or match their Terms of Service and/or changes.
If PPC is the only service used - you will never be an authority web site on anything - and authority defines - market trust, and your credibility.
PPC never allows the web site owner to truly fault find problem areas of the web site.
PPC favors big business with large marketing budgets

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