Tag: advertising

Efficient Pay-per Click Techniques Make a World of Difference for Your Business’s Bottom Line

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Pay-per-click (PPC) marketing is an advertising model used to direct traffic to websites, in which an advertiser pays the publisher – typically, the website owner or host – each time one of its ads are clicked on by a potential consumer, surfing the web.

Search engines such as Google and Bing allow businesses to buy listings in their search results. When someone searches on a keyword that is related to a business’s offerings, its ad will show up on as a sponsored link or banner ad on a results page, along with the natural, non-paid search results.

There are two types of PPC advertising – flat rate PPC and bid-based PPC. In the flat-rate model, the advertiser and publisher agree upon a fixed amount that will be paid for each click. In bid-based PPC, ad placement is sold at auction. Each advertiser informs the host of the maximum amount that it is willing to pay for a given ad spot based on a keyword. The highest bid has the best chance to appear first in the rankings.

Whether utilizing a flat-rate, or bid-based model, PPC’s effectiveness as a source of profit assumes that the costs of all the clicks will be substantially less than the overall gain from sales made as a result of the portion of clickers who eventually convert and buy. When PPC is not working correctly it can hurt a business’s bottom line – the cost for ads are greater than the income for sales that close.

Effective and profitable PPC campaigns rely on a broad set of carefully thought-out and well-implemented components: researching and selecting the right keywords; organizing them into ad groups; creating ad text and landing pages that are optimized for conversions; and knowing how to target the correct audience, how to test ads, and how to use the tools and analytics that measure, and can thus help refine, results. Search engines reward advertisers who can create relevant, intelligently targeted pay-per-click campaigns by charging them less for ad clicks.

Google AdWords is the largest and most popular PPC advertising system, simply because Google gets the most traffic. Every time a search is initiated, Google digs into the pool of AdWords advertisers and chooses a set of winners to appear in the valuable ad space on its search results page. The winners are chosen based on a combination of factors, including the quality and relevance of their keywords and ad campaigns, their click-through rate, the quality of the page to which and ad points, and, in the bid-based model, the size of their keyword bids.

So, in order to become and stay a Google AdWords winner, a business must do the essential work of creating and maintaining its PPC campaigns. Effective techniques include:

• Crafting relevant keyword lists, tight keyword groups, and proper ad text.

• Creating optimized landing pages with persuasive, relevant content and a clear call-to–action, tailored to specific search queries.

• Consistently reviewing the effectiveness of ads by testing them and then optimizing them as necessary.

• Tracking conversions and sales in order to measure return on investment.

• Avoiding keyword bidding wars that end up costing more than an ad’s potential return.

Pay per click is now a basic Internet marketing tool and very few businesses can afford to ignore it. But like any other marketing campaign, a PPC campaign must lift the bottom line, not drag it down.

The Effects of Advertising

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Advertising is a form of marketing communication used to promote or sell something, usually a business’s product or service, but it can be almost anything that one individual wants to exchange with another in return for money or some other commodity or service. It is said that the practice of advertising began millennia ago – commercial messages and political displays have been found in the ruins of Pompeii and ancient Arabia, as well as on ancient wall paintings in Asia, Africa, and South America. The first printed advertisement in English appeared in 1477, the year after William Caxton set up his first press in England. By the middle of the 17th century, British newspapers had adopted advertising as an intrinsic part of their contents. The first daily newspaper in the American colonies devoted as many as ten of its sixteen newspaper columns to advertising.

The “Father of modern advertising” is purported to be one Thomas J. Barrett, a 19th century Londoner, who created an effective advertising campaign for the Pears Soap Company which involved the use of targeted slogans, images, and phrases. “Good morning. Have you used Pears’ Soap?” was famous in its day and well into the 20th century. Barrett introduced many of the crucial ideas that lie behind successful advertising. He constantly stressed the importance of a strong and exclusive brand image for Pears and of emphasizing the product’s availability through saturation campaigns. He also understood the importance of constantly reevaluating the market for changing tastes and mores, stating in 1907 that “tastes change, fashions change, and the advertiser has to change with them.”

As America became more industrialized, especially from the 1880s to the 1920s, mass-appeal advertising paralleled the mass production of goods. Most advertising during this period focused on the products being made – their construction, performance, uses, prices, advantages, etc. Product-information advertising’s aim is to familiarize the consumer with brands as well as to introduce new products by educating the general public as to their purposes. And at its best, this type of advertising helps inform the public in a dispassionate and helpful way.

After the 1920s, advertisers in the U.S. adopted the doctrine that human instincts could be targeted and harnessed, or “sublimated” into the desire to purchase commodities. Product-information advertising was replaced by a model that stressed product imagery and personality. These early purveyors of modern advertising understood that the most powerful effect of an advertisement was the good feelings it could create by surrounding a product with other things that people liked. Its contemporary version can be found in the advertisements that proclaim, for example, that: “Love – It’s what makes a Subaru, a Subaru.” In other words, the point of advertising became the manipulation of emotion, rather than a method of informing the public about a product’s uses, performance, and advantages. This dynamic, called “affective conditioning,” has been clinically proven to work time and again. Edward Bernays, a nephew of Sigmund Freud, became associated with the method and is sometimes called the “Founder of modern advertising and public relations.”

Today, advertising pervades society via a plethora of media. Ads in newspapers, magazines, billboards, radio, television, the internet, direct mail, etc., constantly bombard the modern consumer with an endless array of messages, pushing them to buy an almost infinite assortment of products. While back in the 1970s, the average American was exposed to about 500 ads a day, in 2015, the number was closer to 5000 – with one full hour of ads witnessed every day on TV, alone.

While everyone admits that advertising is a necessary part of each and every business, and that the there is a realm of advertising, such as public service announcements that help market a social concept of importance to the general public, it is just as certain that the overabundance of advertising, as well as its pervasiveness, may also be causing enormous social damage. Advertising, as Bernays understood, plays with our emotions. It encourages us to believe that buying things is the ultimate goal of life, and it conflates important human feelings with non-sentient objects. For example, does anyone really believe that love is what makes a Subaru a Subaru, and not metal, rubber, and plastic? Of course not.

But even though we realize, intellectually, that that notion is ultimately untrue, our emotional selves prompt us to go out and buy a Subaru because we’ve been tricked into thinking that we’re purchasing the love and not the metal, rubber, and plastic. Thus, advertising promotes mindless consumption, as the majority of modern ads try to convince us that the products we buy will bring us the happiness we seek. But it’s a never-ending and habitual cycle that leads to more, not less, discontent, as we amass more and more stuff but continue to remain unsatisfied.

Now, as more and more advertising becomes web-based, we become even more targeted by advertisers who know more and more about our preferences and habits, and thus have more sophisticated insight into which buttons they need to push to further induce us to purchase even more things we may not actually need.

At its worst, advertising has come to dominate our culture, transforming our society into a materialistic one, where the purchasing of products becomes our raison d’être. In its most egregious form, it has virtually replaced political discourse with mass marketing strategies, so that even the selection of our political leaders is now guided by the same emotional and mindless process by which advertisers sell their commodities.

While advertising may be said to provide many benefits, including the stimulation and development of new and better products; holding down prices; encouraging competition; subsidizing the media; and providing the dissemination of information for health and social issues, as well as products; over the course of the last century, modern advertising has also morphed into a ubiquitous dynamic that has helped to distort human values, devolving our citizenry into nothing more than consumers of manufactured goods, solely for the profit of giant, soulless, corporate entities.

Target Marketing – Does it Work?

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The biggest mistake that any business or entrepreneur can make is believing that if you build it, they will come. The truth is: they won’t. You have to go get them. The second biggest mistake is believing that if you simply close your eyes and shoot enough buckshot, sooner or later, you’re going to bag a customer. Well, you might, but you’ve probably wasted a whole lot of time, money, and energy with that kind of scattershot approach. In order to get the right kind of customer to notice you, and ultimately buy your product or service, you need to use a finely tuned, steadily aimed, high powered rifle. In other words, you need to employ targeted marketing.

Targeted marketing is a type of advertising that is designed to reach those consumers who are most likely to become your customers based on various traits, such as demographic, psychographic, geographic, economic, and other quantifiable types of behavior, such as previous purchasing habits. Targeted marketing allows businesses to eliminate wasted advertising to consumers whose preferences do not match a product or service’s attributes.

In order to identify your target market, you will need to explore the following: • Demographics – Who are the people who actually use your product or service? Demographic details include age, gender, marital status, ethnic group, family size, education level, occupation, etc. The sexes make different purchasing decisions and so do different age groups. Single people have different needs than married ones.

• Geographics – Where do your potential customers live? If you’re selling something on the north side of town, marketing to the south side, where many of your competitors abide, could be a colossal waste of time and money.

• Psychographics – Why do people buy what you’re selling? What are their interests and hobbies? And what benefits can you provide that will satisfy their personalities and lifestyles?

• Economics – Who can afford your product or service? And how much are they willing to spend? And why would you try to sell a Rolls Royce in a low income area?

• Buying behaviors – Who normally buys what you’re selling and how does your product or service fulfill their needs? What have they bought in the past and how have they been persuaded to do so? What are the best ways to reach them?

Once you’ve answered these questions satisfactorily, you still will have to do the necessary research in order to break down the universal market into the segments or niches that are most likely to become your customers. In other words, you need to create a customer profile. Instead of trying to appeal to everyone, a business is much more likely to do better by exploiting its identified niche with cost-effective marketing strategies. For example, a clothing store selling high-end maternity wear might identify its target customer as a 25- to 40-year old, pregnant, business woman within a ten-mile radius of the store. So, advertising in a woman’s magazine is smarter than taking out an ad in “Cigar Aficionado,” much less a widely distributed, general newspaper.

Does target marketing work? Various marketing studies suggest that it does. The Network Advertising Initiative’s 2009 study measuring pricing and effectiveness of targeted advertising revealed that it secured an average of 2.7 times as much revenue per ad as non-targeted advertising, and was twice as effective at converting users who clicked on online ads into buyers.

So, put the shotgun away and take out the high-powered rifle. Open your eyes, know who to aim at, and go for the right target. Happy hunting!