PPC – Pay Per Click Risks
The main risks with a PPC campaign is in paying for clicks that are not converting, campaigns that are not optimised for completion or poor targeting can cost your business a fortune.
Full article on Search Network Adwords PPC
At a glance here is a summary.
1. You pay for each click to your website
You pay whenever your ad is clicked, regardless of whether that click converted into a sale or not. It is likely a substantial percentage of clicks will be received from visitors who have no intention of buying your product or service.
2. Competitive industries have a higher cost per clicks
If your competitors are already using Google AdWords, this might a reason why you wish to start your own Adwords campaign. But the competition can be fierce and in some industries clicks can be as high as $50, competing for clicks against your competitors has the effect of increasing demand causing the cost per click to go up.
3. If you have no budget, your ads will stop
AdWords will only run while you have a budget in place, once spent the ads turn off. Compare this with SEO which requires a longer-term investment, and has the benefit of a much-improved ROI
4. You need to invest time in management
With a steep learning curve when it comes to AdWords, mistakes can be expensive. You need to invest quite a lot of time after the campaign’s been set up to ensure that it has been done properly, and then you need to keep monitoring it to find out what’s converting and what’s not.
5. Landing pages need to be highly relevant
Google looks at the quality and relevance of your landing pages. By improving your website’s landing pages, your Quality Score will increase, which result in either paying less for clicks or improved Ad ranking.
For the user, there needs to be a clear defined simple to use ‘Call to Action’. This Ad specific landing pages need to be optimised along with your campaign and it is recommended that CRO Analysis & SEO is performed.