Seeking Out Alternative Advertising to Pay-Per-Click Services

Pay-per-Click advertising has become increasingly popular, but how effective is it really?

March 26, 2007

What could be easier? You write a 3-line ad, set a budget, and pick some keywords for promoting your ad. Google and Yahoo do the rest! Your ad is automatically placed in the right places, your results are tracked and recorded, and your monthly budget is never exceeded. Pay-per-click (PPC) is an advertisers dream. Or is it?

In 2006, Google agreed to a $90 million settlement in response to a class action lawsuit that alleged they hadn't done enough to protect their advertisers from click fraud. Click fraud occurs when someone (usually a competitor) clicks on a PPC ad repeatedly to drive up that advertisers expense or max out their PPC budget, thereby eliminating that particular ad.

Make no mistake about it, click fraud exists. Anyone using  pay-per-click services or hiring a pay-per-click firm should be aware that this is something that's very difficult to police. You can't count on the search engines to do it for you, or wait around for the next class action suit for your $4.50 credit (that's what Google had to "pay" to each of their advertisers for every $1,000 they had spent). You'll need to monitor your pay-per-click spend very closely. Unless you do, it could be very easy to fall victim to click fraud.

Another negative to pay-per-click is the rising cost. It's only going to become more and more expensive as new advertisers discover it and new businesses are formed. Already the costs for popular search terms can be prohibitive.  

But perhaps the most troubling aspect of PPC, if it's true, is the research that suggests many users are "tuning out" the sponsored ads in their search engine results. More than one report has suggested that consumers are looking past the results they feel are "planted" and don't necessarily pertain to their particular search. You'll certainly need an alternative advertising method to reach those skeptical users.

There's a place for PPC and it can be effective, but there are other ways to advertise on the Internet. 

Consider niche market advertising. Much like placing an ad in a magazine that's tailored to your audience - it  allows you much more creativity and ad space, and reaches only those users who have an interest in your product or service. In most cases your costs are fixed, and your ad is more visible and effective.

Finding a site that allows you to expose your advertising to the right market can be tricky. Look for a site that can provide you with a list of companies that are having success in your market. Don't be scared off by big names advertisers that you may have to compete with -- they may actually help you in some ways. 

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Bob Viering, Director of Marketing
Vertical Alliance Group, Inc. Dallas, Texas
www.verticalag.com
www.basicunitofwealth.com
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