Since cost effectiveness is one of the most appealing things about PPC ads, it may seem counterintuitive to hire a PPC management company. After all, why pay more for something you can do yourself? For the same reasons we hire anyone to do anything, of course; because expertise has value and a successful business often requires delegation of certain tasks. An argument can be made for both, but there are a few things to consider before deciding whether PPC management fees are a worthwhile investment or an unnecessary expense.
Available Resources For PPC Management, Worth The Expense?
There are a lot of excellent resources available that will help you launch a basic PPC campaign. PPC platforms like AdWords are designed to be user-friendly. They offer step-by-step instructions on how to design, launch, and manage your PPC ads. If you want a certain caliber of campaign and are aiming for specific results, however, hiring a PPC management company may be a better choice. For one, it is easy to make a lot of rookie mistakes with PPC ads. Since you are only paying per click that may not seem like such a big deal, but, in fact, running ineffective ads that do not drive traffic to your website is a colossal waste of time and energy. Furthermore, AdWords and similar advertising platforms will provide you with considerable data about your PPC efforts. Extracting the less obvious lessons from that information and adjusting your PPC ads accordingly, however, requires a deeper understanding of analytics, marketing, and consumer behavior. Even if you have a knack for spotting subtler trends, keeping abreast of the latest search engine developments is not generally at the top of most people’s to-do list. You have a business to run and your own area of expertise. The most effective advertising bolsters your business without splitting your focus or requiring you to be something you are not.
Outsourcing Option for PPC
Choosing to out source any of your business’s needs tends to come down to two things: your personal philosophy and the cost. PPC management fees can vary widely, but they tend to be structured in one of the following ways: percentage, flat rate, or results based. Percentage of PPC spend is one of the most common arrangements and is relatively straightforward. You decide to spend a certain amount on PPC, and the agency charges a percentage of that amount to set up and manage your campaign. Flat rates are broken down by hour. For example, one arrangement could be an initial set-up fee for 30 hours and a recurring fee for eight hours a month, with major maintenance jobs charged separately. Results based PPC management agreements are less popular because while they may seem simple, they are actually quite complex. Someone could click on your ad and decide to make a purchase but not complete the sale at that exact moment. The ad has clearly done its job, but the conversion is not readily apparent. Even if the connection between the sale and the click is abundantly clear, all keywords are not equal. As a client, you are paying the same amount regardless of the sale total, which may or may not be in your favor. Rather than wrangling over the definition of a sale or having the scale of compensation drastically changed by mitigating factors that have nothing to do with the management company’s services, it is far more beneficial for client and agency alike to have a more transparent fee structure for single-tiered ad campaigns.
3 Steps to Analyzing Whether You Need PPC Services
Keep in mind that many online advertising agencies will only manage PPC campaigns of a certain size. Frequently, PPC ad management is included in a larger package that encompasses SEO and social media. Small business owners may have a more difficult time finding a PPC management company that will suit their needs, but there are reputable firms out there that can manage small business PPC campaigns effectively. Regardless of what you decide, if you are still on the fence, there are three things you should do.
The first is to educate yourself about PPC. Become comfortable with the lingo and the basic concepts. Check out other PPC ads and try to envision what your PPC campaign would look like. Next, launch an experimental PPC campaign. Keep it small and manageable, just enough for you to gauge what is involved and what you are capable of handling. Lastly, discuss your options with a few different PPC management companies. These conversations will be enlightening, and you can compare proposals to make sure you are investing wisely.
In the end, it all comes down to what you value and the most beneficial allocation of your resources. It is easy to focus on money, but time, energy, and expertise are equally valuable commodities. PPC management fees are an added expense, but they could also lead to a more profitable future.
PPC Management Fees May Seem Like An Unnecessary Expense, But Money Is Not The Only Factor In Determining If A PPC Management Company Is A Worthwhile Investment. Learn more at Wpromote.com
2 Comments on "PPC Management Fees: Worthwhile Investment Or Unnecessary Expense?"
There is another option when wanting to outsource you PPC efforts. I work with a group of freelance sem experts who set-up, maintain and optimize ppc accounts for small to mid-size businesses. There is a lot that goes into running a ppc campaign and sometimes the best option due to money, and more importantly, time, is outsourcing.
I totally agree. Unless you are working on your own website and that is your bread and butter, i.e. you have no income except for what your site is bringing you and you have all day to devote to it, then outsource! Let professionals bring you extra traffic. Now lets just hope that you site is properly optimized for conversion or all of the traffic that you ppc is bringing in will go right out the window.