PPC SEO header image 2

Why PPC ads are more popular among advertisers than other types of online marketing?

No Comments · ppc

Besides the fact that the location of ads on results pages is usually in the viewing area that draws a visitor’s eye more quickly than other parts of the page, the actual component itself has many advantages over other types of online advertising that result in its overall lead in effectiveness.

Key to this effectiveness is how the searcher views this form of advertising and their acceptance of it, in comparison to their relatively weaker response to other types of online advertising, such as banner ads or popup ads. 

In part, this is because PPC ads are still a novelty, relatively speaking, compared to banners and popup ads, which have been highly visible on websites for many years.

Although paid advertising has been around for a large part of the last decade, it wasn’t really until Overture pioneered its pay-per-click program in 1997 that the product’s potential became evident. Other search engines soon introduced similar programs.

With the Yahoo! acquisition of Overture late in 2003, the two largest search properties on the Internet-Google and Overture/Yahoo!-intensified their competition in the PPC Industry, a process that resulted in an improved product with features that other search engines were quick to add to their own paid search product offerings.

This resulted in the skyrocketing interest we now see in search engine users and advertisers alike.

Searchers find great utility in PPC ads, mainly because they are clear in what they are selling.

General search results may or may not lead to companies actually selling products, but because these ads are paid advertising, it’s completely logical to searchers that when they click on such an ad, they will go to a website with relevant products or services.

In effect, the audience is already targeted and pre-qualified-your PPC ad will be clicked on by people already interested in your product, resulting in better conversion rates than organic search listings.

Other types of online advertising do not deliver to the advertiser the same kinds of benefits a pay-per-click ad does. 

Some of the reasons why PPC ads are more popular among advertisers than other types of online marketing include:

·        PPC ads can be crafted so as to include your most important keywords and unique information that will lead a user to click, even though they are much smaller in size than banner or skyscraper-style ads.

·        PPC ads are text-only (except for the occasional search engine that allows the addition of a logo in the ad).

Research has proven that text ads have more Influence on searchers, because they provide information to help them make a decision, rather than just flashy graphics with little detail.

·        Whether people are looking to buy products online, or are just researching products they will later buy locally, they have little time to waste.

They prefer ads that tell them as much as possible about the website and its products so they don’t waste time looking at sites that don’t fit their needs.

·        PPC ads found on search engine results pages reach a larger potential audience than banner or popup ads placed on a website or in an online news source.

Research shows that up to 80% of people who are online use either Google and/or Yahoo!.

Therefore, those people are exposed to PPC ads on a regular basis. Even if the searcher doesn’t click on your ad, you may have made an impression on their mind at no cost to you.

They may remember your company’s name later when they are looking for whatever it is that you sell. They may not have been at the “ready to buy” step when they made their first search.

·        Other forms of online advertising tend to be much more expensive than PPC ads. This is due, in part, to the fact that no payment is due until someone clicks on the PPC ad.

Other forms of advertising show up on the page regardless of whether or not the viewer is looking for the product you are advertising; therefore, relevancy is not as efficient for other forms of online advertising.

·        It is relatively simple for an advertiser to calculate the return on investment (ROI) of a PPC ad campaign because the advertiser is only charged when someone clicks on the ad.

Statistics on how many clicks were made during a certain time period, and an enormous amount of other analysis of visitors’ behavior while on your website (such as which pages they visited, how long they stayed, and so on) are easily captured.

The advertiser knows the cost of the ad campaign, because they control the cost via bidding on keywords, and can track how many searchers were converted into buyers.


This makes figuring out if the PPC ad was profitable or not a relatively simple calculation.

As a simple example, let’s assume that during the month of January your PPC ad cost you $100 in clicks and that you made net sales of $150 that you can tie directly to that PPC ad. The ad was clearly successful-you earned $50 from it that month.

With an online banner ad as a contrasting example, payment is usually based on a CPM basis, or a specific cost per every thousand impressions or views of the page containing the ad.

With a cost-per-impression type ad, you cannot even be certain that the searcher saw your ad on the page, just that they visited the page. Even if they ignored your ad completely, you still have to pay for it.

The cost of banner ads varies, depending on the popularity of the site they are appearing on, but averages anywhere from $S to $50 per 1000 page views.

You will owe this amount, regardless of how many people actually see your ad. As well, over the past couple of years, banners have begun to lose their effectiveness, because users simply have come to ignore them.

Another disadvantage that other methods of online advertising face that PPC advertisers don’t have to be concerned with, is the changing of the ad itself.

The text of the ads can be changed at any time and there is generally a quick turnaround by the search engine’s editors, who must review and approve text changes to PPC ads.

However, changing the text or a graphic on any other type of online advertising is a lot more involved.

To summarize, pay-per-click advertising is considered more effective by a growing number of online advertisers, for a number of very valid reasons.

Basically, the advertiser knows that searchers have been pre-qualified as being interested in the product, and they are only charged when someone clicks on the ad.

Keywords: online advertising, paid advertising, PPC ads, text ads, ad campaign, ppc.


No Comments so far ↓

There are no comments yet...Kick things off by filling out the form below.

Leave a Comment