I run a growing search engine marketing agency, so you’d think that I’d spend heavily advertising my agency with PPC, right? In fact, I spend a total of $0/year on PPC for my own business. Partially this is because I don’t need to (I get business from existing clients and word-of-mouth), but it’s also because I don’t think PPC would work for my business. Simply put, I’m too expensive for the average PPC clicker.
As John Battelle aptly put it, search engines represent “the database of intentions.” When someone does a search, they are expressing their intent to do something. My agency charges a minimum of $2500/month for our services. With that in mind, how much do you think the typical searcher who types in “search engine marketing agency” or “AdWords help” or “PPC” into Google expects/can pay for SEM help? The vast majority of searchers are looking to pay at most a couple of hundred dollars a month for SEM consulting. And for most of these people, that’s what they should actually pay – they don’t need to advanced tactics that my agency offers, they simply need “blocking and tackling” – a properly set up campaign with a good list of keywords.
If I bought 1000 clicks a month on AdWords for my business, the odds are that 990 out of 1000 clicks would come from people looking for something other than what I am selling. That leaves me ten chances to convert a customer. If each click costs $2, I’m paying $200 per click for those ten qualified searchers.
There are, however, good reasons to advertise expensive products and services via PPC – if you do it right. First, if you have a product that makes you a huge amount of money for every sale, you might want to advertise it with PPC, even if most people aren’t looking for what you are selling. For example, let’s say you sell telephone service to large enterprises. A consumer might want to pay $30/month for home phone service, but if you sell your product to IBM, you might have a $10M annual contract. If 990 out of 1000 clicks are consumers, but the last ten are companies like IBM, even if you only convert one sale a year, the PPC campaign will pay for itself many times over!
Secondly, if you are slightly more expensive than competitors but have significant differentiation, you can also make PPC work. Let’s say that the average consumer phone service costs $30/month and comes with voicemail, call-waiting, and conference calling. Your service, however, costs $50/month but includes an after-hours call-answering service, a toll-free number, and superior sound quality. If you can convince consumers that it’s worth paying more for your product, you may still be able to make PPC work. Imagine an ad that said something like this: “The only home phone service with a toll-free number and sound quality approved by NASA!” With an ad like this, you are clearly telling consumers that not all phone service is the same, and that it may be worth paying more for quality.
In general then, PPC can work for selling expensive products and services, but make sure to follow these rules:
- If you aren’t the lowest priced product, differentiate yourself in your ad so that only people interested in quality will click your ads;
- Expect a lot of untargeted clicks and make sure to work hard to close the few targeted ones. This might mean having a very informative landing page, or for B2B, setting up a lead nurturing/lead qualification process to engage potential customers;
- Avoid generic keywords if possible. If you are selling Rolexes, avoid keywords like “telling time” or “watch” and instead focus on targeted words like “expensive watch” and “designer watches”;
- Add in lots of targeting. If you sell to businesses, exclude non-business hour day-parts. If you sell an expensive consumer product, add negative keywords like “cheap”, “free” and “ebay.” If you market to rich people, exclude lower-income geographies;
- Measure success over a long period of time. If your average sale is $50K, it’s OK to spend $1000 a month for six months and not get a sale, as long as you are seeing potential buyers move through your sales pipeline;
I still believe that PPC is best-suited for companies that position themselves as the “low-cost leader,” or the cheapest seller in a category. Follow the tips above, however, and you can still make your pricey offering work. Good luck!
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David Rodnitzky is Founder of PPC Associates, a leading SEM agency in San Francisco. To learn more about full service AdWords management from PPC Associates, contact David at david@ppcassociates.com.







