The PPC (pay per click) industry is booming, and with this success comes the potential for huge valuations. But what is Pay-Per-Click, and how much is it really worth both as an industry in itself and to companies who choose to use this method? Let’s take a quick look at some of the key facts and figures which have defined and shaped the success of pay per click advertising.
What is PPC?
Put simply, pay per click advertising is a form of internet marketing which requires advertisers and marketers to pay a fee each time one of their adverts is clicked. As a means of coaxing visits to your website without relying on organic (or ‘unpaid’) visitors, it’s one of the most popular forms of digital marketing available, driving traffic to featured websites – often through the utilisation of select, carefully chosen keywords. PPC remains a key internet marketing tool which generates transparent pricing and a visible return on investment.
Valuing the PPC Industry
Putting a financial value to the PPC industry as a whole is a difficult task to undertake, as pay per click campaigns are popular throughout the world. Therefore, the data available is sometimes more than a little disparate. In the UK alone, the PPC industry was worth over £4bn back in 2012, a figure which has doubtlessly only grown in the intervening years.
Do high-value companies rely on PPC?
Business spend on pay per click advertising naturally varies dependent upon the scale of business operations, but the value to organisations of PPC is clearly evident in the available data. In a survey of the 5000 fastest-growing companies in the United States, research showed that four out of the top five businesses were utilising PPC as part of their online marketing strategy. Larger companies have been reported as spending millions on their PPC campaigns, with the average ad costing between £0.66 – £1.32.
Why do companies choose Pay-Per-Click?
The ability to see and measure the results of PPC campaigns doubtless provides plenty of impetus to choose this method of marketing, but when costing which marketing tools will be the most effective, companies have other food for thought as well. Browsers arriving at a website through PPC activity are around 50% more likely to make a purchase something on that site than those who found the website through organic marketing methods. In addition, paid ads garner an impressive 65% of all searches with high commercial intent – suggesting that for those who really want to make a purchase, PPC has significant staying power.