SEO Friendly Web Design
Are you spending money on PPC?

If you are spending money on PPC, you may like to read further.

Do you believe PPC is for bringing traffic to your website?

One of the biggest misconceptions about the PPC we have seen among the clients running PPC is that they believe more the traffic their websites get from PPC, the better their PPC campaigns are. Nothing can be far from truth.
Discussing with a client sometime in past, we came to know that they were spending more than $10K figure per month on PPC attracting more than 30K visitors. However, when we asked them about their conversion rate, they revealed that they were having less than 60 conversions averaging about $100 per order. A simple calculation would tell you that they were losing at least $4K per month.

Was there an issue?

The client believed that more visitors meant higher number of orders. True! However, the truth was skewed. As you might have guessed, it was poor conversion factor. We plotted a graph with his facts and extrapolated to find out what would happen to their PPC revenue at various PPC traffic levels. As you can clearly see that the more traffic meant more loss!
Revenue at various PPC traffic levels.
Note the increase in loss with increasing traffic levels. original_ppc_making_loss

What was the issue?

The issue was that they were running PPC on high competition (read high cost per click) generic keywords. The generic keywords brought visitors, but most of them were not looking for buying the products the company was selling. They searched the term for various other purposes and clicked the PPC link of the company. They contributed to high traffic no orders (HTNO), increasing loss for the company.

What was solution?

The PPC was being run for generic words. The client was advised to switch to niche and long tail keywords and Ad campaigns. This resulted in lower cost per PPC as competition was lower for these terms. On the revenue side, the conversion factor increased substantially and revenue per order went up. The PPC campaign was soon yielding net positive revenue (see red lines below).
Modified PPC plan making profit ppc_profit_after_modified

A beautiful beginning...

You have already seen what happened to their PPC campaign. With the money saved from PPC, the client started SEO as well. A somewhat representative of the illustrated case, yet hypothetical representation of comparison of SEO and PPC is shown below. As you can clearly see that the SEO traffic increases slowly and steadily. In the long run, the average SEO cost per visitor is much lower than that of PPC. The SEO is still not making enough money to cover its cost, but the combined SEO PPC net cost has come down substantially and in future the client should expect SEO traffic making them handsome money besides increasing their brand awareness.
New plan: SEO and PPC together seo_and_ppc_running_together
New plan: Average cost of SEO per visitor going lower and lower average_cost_of_ppc_vs_seo

SEO and PPC Together: How to plan?

Read here how to plan for SEO and PPC together.
Disclaimer: All representations of data are hypothetical. The past results are no guarantee or indicator of future performance.