Small businesses have increasingly turned to paid search—particularly, Google’s AdWords program—to drive in-store and online search traffic. However, according to research by Wordstream, they are wasting nearly 25% of their pay-per-click (PPC) marketing spend due to simple managerial and strategic errors. The search marketing software and services provider found that this efficiency gap results in dozens, if not hundreds, of lost leads and increased costs for small businesses. WordStream reviewed the PPC activities of 500 small and medium-sized business client accounts in USA and found that many businesses are not maximizing the value of their AdWords campaigns because they do not engage in basic PPC best practices such as actively managing their accounts, improving ad relevancy and engaging in mobile optimization.
Key findings from Wordstream’s research include:
A typical small business wastes about 25% of their annual PPC advertising budget. Depending on the vertical, that 25% of wasted spend adds up to a lot of lost business, sales and leads:
Just doing more work in your PPC account is probably the single easiest way to improve your results. But most SMB AdWords managers are guilty of laziness:
PPC advertisers, whatever the size of their business, need to do smart keyword research, focusing on keyword relevance and keyword expansion:
More relevant ads get higher Quality Scores. With a perfect Quality Score of 10, you’d enjoy 80% lower cost per click and a 50% discount on cost per action. The lower your score, the more you pay – unfortunately the average Quality Score for small businesses is 5.
Small Business Marketers Have Ineffective Landing Pages
Landing pages are how you cross the finish line in PPC and convince your visitor to convert. Small business advertisers aren’t closing the deal because of poor landing page optimization:
Now is the time to take advantage of the opportunities in mobile advertising. However, small businesses still aren’t making the most of mobile space:
said;“While it’s not great for SMBs to hear that they are wasting nearly a quarter of their PPC budget, we believe that knowledge is power and the first step to fixing these problems is to know that they exist. The good news is that each of these problems can be rectified by applying regular attention and relatively minimal time; it’s something even the busiest small business owner can manage. We think this research will open some eyes and hope it will help SMBs make better choices when putting their hard-earned money behind PPC programs.
Ask us for a FREE Adwords Performance Grader to see if your campaigns have the above problems. You can avoid all these problems by choosing Patterson Digital Marketing to optimise and manage your PPC advertising and you will achieve a great ROI and get an edge over your competitors – phone Chris now at (09) 449 1005 or (027) 489 5009 or email at chris@PattersonDigitalMarketing.com to arrange a free 2 hour consultation to maximise your PPC advertising sales and achieve your desired results.
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