Advertising: Pros and Cons

Discussion in 'Internet Marketing' started by PWessler, Aug 6, 2012.

  1. PWessler

    PWessler
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    We're beginning to expand our business and are now faced with the dilemma of paid advertising. Up until now, we've relied primarily on our SEO specialists to get us ranking in Google and get the word out to potential clients, but lately we're considering paid advertising, whether it be PPC ads or print advertising. I'm wondering what people here think are the pros and cons of paid advertising and what routes you think are the best ones to explore. Is print advertising still a good option, or should we focus primarily on online ads or even some radio spots. Any advice would be beneficial and informative.

    -P Wessler
     
  2. StarkSEM

    StarkSEM
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    Well, first I'd ask how much are you spending on your organic traffic, and is it working?

    Secondly, it's really up to your pocket books.

    PPC or any paid advertising won't *ALWAYS* get you quality traffic. You just get traffic.

    If you're PPC campaign is $0.10 per click (which is generally low) and you get 10,000 clicks in a week. 90% of those clicks were just curious and did not have any intention of buying your product. Now you're done to 1,000 clicks. If you were able to get 40% of those remaining to actually look at your site seriously and browse your site with the intention of buying, and then sold 5% of those (20 People) your product then the math turns out like this:

    $0.10 x 10,000 = $1,000 in Advertising
    $1,000 / 20 (Buyers) = $50
    Your product needs to have at least a $50 profit to break even.

    I know these numbers are all really just play, but these are the results alot of people get when they don't understand what they are doing.

    You have to discern between the people looking to buy and the people looking for information or pricing. Then you have to include your actual conversion rate (which 5% is kinda high in most markets).

    PPC has it's benefits, but you need to do your homework on them.

    Just my two cents... offline marketing isn't my thing.
     
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