Madwire Media, Big Commerce Templates, Colorado Web Design

Inbound Marketing vs PPC

Posted on Monday, August 31st, 2009 at 5:15 am. Tweet

Is the money spent on PPC worth it? It seems harmless enough.  You set up your PPC account with a daily ad spend of say…$25.00, but how much are those keywords going to cost you?  Some keywords are so competitive that their cost is as high as $6.00 to $12.00 per click, and many top keywords go for much more than that.  If your average keyword cost $5.00 per click your daily budget of $25.00 is going to go pretty quick.  Consider too, that for each click though that you pay for not all will result in leads or sales.  Many clicks simple hit the back button and leave your site as quickly as they came.  On average, you can expect to convert maybe 8% of the clicks to your site.  So, if your ad budget was $25 a day, your keyword cost was $5 per click, your conversion rate was 8%, your PPC campaign should yield .40% of a lead per day.  At the end of seven days your campaign would have yielded 2.8 leads, during which time you would’ve spent $175 on your PPV campaign.  Rounding your leads up to 3, your cost per lead would have been $58.00.  Now, if you’re selling a high ticket item or your average sale is $1,000.00, the cost of $58.00 per lead may be reasonable, even low, but if your average sale is closer to $100, or less, a lead costs of $58.00 will put you out of business quick.  So, is PPC too expensive? I think, for many small businesses, it is.  At Madwire Media we focus on inbound marketing and search engine optimization.  There is a cost there as well, but, in many cases, the cost per lead and sale are much lower.  A local campaing for, like Loveland SEO or Fort Collins SEO, can be done for a very low cost.  Once your site has achieved a high local ranking you can expand your market to include the regional market, like Colorado SEO, still at a very reassemble rate.  Come talk to us.  I think you’ll find the time very well spent.

Tags: Colorado SEO, Denver search engine optimization, Denver SEO, Fort Collins SEO, inbound marketing, internet marketing, Loveland SEO, Search Engine Optimization (SEO)