Advertising via PPC and PPM is the quickest and most sure-fire way to get your advertising message in front of thousands of people immediately. Other advertising methods, like SEO or email marketing, require several weeks to “ramp up” in terms of traffic. With paid advertising, you can start placing your advertising message in front of your target market right away.
The first question a beginner advertiser asks is whether he or she should use Pay Per Click advertising, where the advertiser pays only when someone clicks on the marketing message (showing interest in the product or service being offered) or Pay Per Impression advertising, where the advertiser buys a certain number of impressions, or times the marketing message is displayed, for a set price.
It’s hard to say which is best for your business and your industry. If your goal is optimization of an existing, profitable campaign, this is typically a question best left to the professionals, but if your goal is just to start somewhere with paid advertising, we’ve found that Pay Per Click ads are lower risk and more predictable.
With Pay Per Click advertisements, you remove a major variable – click-through rate (CTR) – from your ad profitability calculations. When you use PPM advertising, you have to calculate the percentage of users who click your ad and the percentage of people who buy your advertised product, then compare this against the lifetime value of the customer to determine whether or not the advertising is profitable. With PPC advertising, you don’t really care what percentage of users click your advertisement, you only pay for the ones that do. Your goal, then, is just to get as many high quality clicks (from people likely to buy) as possible.
We strongly feel that if you’re asking the question of whether you should use PPC or PPM advertising, you are best suited for PPC, which is far easier to experiment with than PPM.
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