In the best case scenario, PPC can be a way for digital marketers to optimize their reach through retargeting their audience; on the other hand, PPC also presents a number of very real disadvantages that shouldn’t be overlooked.

advantages and disadvantages of pay per click

While some of the disadvantages of PPC have always been apparent to those who understand it, there are certain disadvantages that have recently become prominent due to the changes in the digital climate over time.

It is important to understand that a PPC campaign has advantages that can help your small business grow. With so many advertising options out there, it’s hard to know where to begin. PPC advertising is a tried-and-true method of getting interested parties to click on ads that link directly to your site.

5 PPC Advantages

Below are five benefits your small business can take advantage and benefit from having a PPC advertising to help you reach a new audience.

1. Small Upfront Investment

Most forms of advertising require a rather large upfront investment. Pay per click marketing doesn’t take much money to get started because most search engines don’t charge companies to begin a PPC campaign, which means you don’t have to pay a fee to set up an account.

With pay per click marketing, you pay when someone clicks on your ad. You can begin your PPC account with a balance of $300 to get started and increase your budget from there. You are not required to use the entire budget within 30 days and can carry over into the following month. 

small business growth

2. You Are In Control Of The Campaign

You can change your PPC ads when you want and they are easy to adjust. This puts you in complete control of your marketing campaign, and it’s an easy way to advertise your services and products.

You can also adjust the keywords that people have to search for to bring up your ads. When dealing with pay per click advertising it’s important to change your ads to meet developments in your industry or to match the latest trends.

The world is always changing. Shouldn’t your ads do the same?

3. Results Are Easy to Measure

As we talked about above, there are plenty of digital marketing options when it comes to promoting your business, including SEO. However, measuring the results from some marketing campaigns can be difficult.

That’s not the case with PPC marketing. Services such as Google Ads allow you to easily track:

  • Keywords
  • Ads that are seen by potential buyers
  • Which ads perform the best
  • Click Through Rate (CTR)
  • Conversions (Leads)

There’s no reason to pay for ads that don’t work, and with PPC advertising, you don’t have to.

conversion tracking data review

4. Quick Results

In the business world, time is money. This means that you want to start generating results from your advertisements as quickly as possible. With a pay per click campaign, you can start seeing an increase in visitors to your website as soon as a few days.

This is because your ads are being placed on top of search results and are being clicked on by users who are searching for solutions to their problems or a product related to your website. It’s a simple, yet very effective, set up.

campaign cost reduction

5. Set Your Own Budget

No matter how big or small your business is, everyone has a marketing budget. Most forms of advertisement require you to pay a large, upfront fee. With pay per click marketing, you can set your own budget because you’re only paying when someone clicks on your ads.

You can put a set amount of money into your marketing campaign, and once your budget runs out, the ads are stopped. You’re never charged extra or hit with hidden fees, which allows you to determine just how aggressive you want your campaign to be.

5 Disadvantages Of PPC Advertising

Certain trends in user activity have indicated that there are weaknesses in pay per click advertising that may have never been quite so apparent as now.

1. Steep Learning Curve

It goes without saying that managing a PPC campaign is anything but a pick up and play affair. In order to conduct an effective PPC strategy, there needs to be a certain level of literacy with its metrics that can be quite overwhelming for newcomers.

Compared to the other methods of online marketing, PPC generally has one of the steepest learning curves of all and will require significant commitment for even a marginal level of proficiency to the gained.

learning curve

2. Can Be Expensive

PPC is not only one of the most complex methods to become skilled in, but it is also be one of the costliest as well. Mistakes that are made on a high-volume PPC strategy can be expensive enough to discourage marketers from making any additional attempts.

Though it isn’t impossible to profit from PPC, attempting to do so requires a mindset that is at peace with losing any invested capital at the early start of the campaign. Once the campaign starts to perform you should start seeing a better ROI. 

3. Shrinking ROI Potential

Even after taking the time to invest in becoming PPC proficient, the observable trends in potential customers have shown far less interactions with ads of any sort. Just as traditional advertising agencies have struggled with the drop in printed ad revenue, PPC marketers have had to cope with the fact that a greater proportion of users have begun to use ad blocking software.

shrinking return on investment

While SEO services can be used to organically funnel traffic to web pages via page rank representation, the prevalence of ad blocking software essentially locks out conversions that can’t be obtained by any tweaking of the PPC method. As it stands, the risk of losing capital on paid ads may not evenly match with what one stands to gain if successful.

4. Contextual Semantic Targeting Backfires

What is often cited as one of the characteristic advantages of PPC advertising can also be one of its most frustrating as well. The contextual delivery of certain PPC ads can be useful for activating ads upon the detection of a certain designated keyword in search queries, but at the same time, this also includes other search queries that might contain the word in an unrelated context.

If the ad doesn’t shed enough light on exactly what the context is, money can be wasted from clicks by users who searched for a term that was similar but not the same as what the marketer had in mind.

5. Saturation and Inflation

The rate of advertiser spending on search engine marketing has steadily increased. The higher influx of advertisers has led to an inflation of the price of Google Ads bidding and cost per click, which means that the competition will only grow steeper as the window for profit grow smaller.

ppc campaign

Finding yourself in a situation where you could be overspending and costing your business money each month is somewhere you do not want to be especially if the budget is not there. You want to avoid dipping into your own personal funds to maintain a pay per click campaign for your business.

When it comes to running a PPC strategy you have to take into account your business and industry you are in. This will help you make the right decision when it comes to having a budget and whether it’s worth running a Google Ads campaign. You want to make sure that you are prepared with a budget that will work for your business.