Author: Dr. Joe Schaefer
I have heard so many people say “yeh, we tried pay-per-click (PPC) advertising. We just wasted a lot of money”. These very same people will tell me how they spent $3000 on radio last month and got one call that didn’t even convert. However, they will proudly tell you how their friends heard the radio ad and thought it was cool.
What follows, is a few comparisons between Old School mass marketing tools like radio and New School search engine marketing. In later articles I will discuss comparisons between Search Engine Optimization (SEO) and Sponsored Link Advertising (PPC).
Old School Advertising: Broadcast your message to 1000 people so that hopefully 5 will be interested in the product and want to move toward purchase. You pay to reach all 1000. Average Cost per 1000 impressions runs $30-$100.
New School Advertising: Wait for 5 people to look for your product online and have your ad suddenly appear. You pay to reach just those 5 people. Average online Cost Per Click (CPC) varies greatly with each industry. You can usually get traffic for $1-$2 per click and for much less in some instances. So, the same 5 people will cost you $5-$10 with PPC.
Old School Advertising: Image advertising seeks to create “Top of mind” placement. Bombardment of the population with your name and message will eventually associate your product name with a single word or need in the customer’s mind.
New School Advertising: Assuming that the population has a need for your service or product, they will eventually come to a computer and enter some search terms into Google, or another search engine. The advertiser then seeks to achieve “Top of Page”.
Old School Advertising: To get real mind-share in your town you will need to spend between $0.50-$1.00 per person, per year. This means that well-meaning business owners who are way out of their league spend most of the advertising dollars in this country. The seminal work of advertising is Claude Hopkins’s, “Scientific Advertising”, and even implied that the jury was still out on whether advertising works. Time has proven that mass-market advertising does indeed work, but the key to that equation is “mass-market”.
New School Advertising: To get “top of page” presence on the search engine screen, you need only bid high enough (PPC). As long as you website is a highly tuned machine for converting visits to leads or sales, then you can make very easy calculations as to what bid price makes sense for your business. For small businesses this is the most powerful and incremental method for gaining new customers in existence. It is a pay-as-it-works method for growing your business.
Old School Advertising: The people who complain about this method are the ones that didn’t have the budget to play the game properly.
New School Advertising: The people complaining about this have lousy websites, without simple navigation or a path toward action. Their ad campaigns lack strategy or dynamic reaction to the changing search environment.
If you cannot afford to spend several hundreds of thousands of dollars a year on TV, radio, and newspaper, then online search marketing is a definitely solution for the small business owner. If you love to tinker with technology and get excited at the thought of tweaking ads everyday, then you can do-it-yourself. However, the information superhighway is littered with the wrecks of do-it-yourselfers that gave Google a ton of money and didn’t see results. When this happens to you, have the common decency to realize that the fault lies entirely with you. People click your ads because they were searching for a product or service like yours. They came to your site and bounced out because you don’t know how to communicate your offering. If you’re not willing to do what it takes to compete for their business then don’t play the game. Competing means more than just getting some clicks to your site with Google PPC ads. The game begins after I get the click, and I entreat you to join me in the sparring match that is online marketing.