It all started with a click
Wednesday, December 12, 2007
The phenomena of pay per click Google listings is far from new, but it begs the question that has been on the tip of my tongue for some time now, where do we go from here? It is understandable why pay per click systems have been so effective, and continue to be so. It is a very real, quantifiable means of getting results, and for small local businesses, especially with the development of Google's (Regional and Local Targeting) system, it is a very exact financial way of targeting specific clients.
You may ask therefore where I see a problem, and the answer is two fold. Firstly, as more small companies are getting online, the competition for industry specific words and phrases is rising. This obviously allows Google to push the prices up, allowing less 'clicks' for your budget. Moreover, many small businesses, due to limited marketing funds, have websites based on templates and these are often sub-standard. Templated sites have their uses, but they need to be used as a base only, and allow for a more bespoke design to be implemented whilst maintaining low costs. This has the effect of pushing potential clients away. When Google AdWords brings up a list with both large and small companies a problem arises, John Smith's electrical goods store on the local high street comes up next to Currys website worth tens of thousands of pounds. As usual, the independent shop loses out. It also begs the question, who is clicking on your link? No matter which industry your company serves, competitors are always looking for ways to improve their market share. It is very probable that they often keep a firm grasp on the products and services offered by their competitors, companies they find through Google. So the real question is are the people clicking on your link potential customers, or indeed your competitors?
So what is the future for small businesses? In my opinion, there are three key elements to consider. Firstly, small businesses need to realise the benefits of investing in a good website. So, big surprise, a web developer arguing for better websites. The reality is though that every year more money is spent online. According to stats, 86% of web users browse for goods and services, with 61% of homes having access to the web. Around 53% of all adults within the UK have bought something online within the last year. The evidence speaks for itself! Small businesses do not have to spend thousands of pounds on websites. They are becoming increasingly affordable, and as such should be used to their maximum potential.
The next stage is to make the most out of search engines. Adword specialists have the ability to manage campaigns effectively and reduce wasted money and time trying to beat the 'big boys' by just boosting the amount of money bid for key words. Adword professionals constantly update and evaluate a campaign to get the most out of each budget. It does not necessarily need to take a lot of money to get to the top, simply the use of a professional who knows how to get the best results for you.
Another alternative is to use Local Directories such as Yell.com and Touchlocal. For a minimal set amount, local directory services guarantee a number of contacts through their site to you every month to the extent that if you do not get the hits, you do not pay the fees. While similar to AdWords, this service is restricted to local businesses in the sense that each area would need to be paid for individually. Smaller companies can benefit from local customers who are genuinely interested in their services. And if they really wished to push the budget for a maximum return on their investment, a smartly designed flash banner can be bought under any keyword for the entire year. Though the risk of not getting any hits is there, if the keyword is cleverly thought out, there is no reason why many clients cannot be directed to a website over the course of the year, a worthy investment.
Effectively, the benefits to small companies of pay per click services are decreasing over time as demand for AdWords increases, and the supply stays constant (there are only so many ways of saying 'electrical supplies'). The only way of truely benefiting is to let Google Professionals manage your campaigns and achieve the reults that the rest of us would struggle to get close to.The only other alternative is a Local directory service, which has a potential future in an increasingly overcrowded market.
You may ask therefore where I see a problem, and the answer is two fold. Firstly, as more small companies are getting online, the competition for industry specific words and phrases is rising. This obviously allows Google to push the prices up, allowing less 'clicks' for your budget. Moreover, many small businesses, due to limited marketing funds, have websites based on templates and these are often sub-standard. Templated sites have their uses, but they need to be used as a base only, and allow for a more bespoke design to be implemented whilst maintaining low costs. This has the effect of pushing potential clients away. When Google AdWords brings up a list with both large and small companies a problem arises, John Smith's electrical goods store on the local high street comes up next to Currys website worth tens of thousands of pounds. As usual, the independent shop loses out. It also begs the question, who is clicking on your link? No matter which industry your company serves, competitors are always looking for ways to improve their market share. It is very probable that they often keep a firm grasp on the products and services offered by their competitors, companies they find through Google. So the real question is are the people clicking on your link potential customers, or indeed your competitors?
So what is the future for small businesses? In my opinion, there are three key elements to consider. Firstly, small businesses need to realise the benefits of investing in a good website. So, big surprise, a web developer arguing for better websites. The reality is though that every year more money is spent online. According to stats, 86% of web users browse for goods and services, with 61% of homes having access to the web. Around 53% of all adults within the UK have bought something online within the last year. The evidence speaks for itself! Small businesses do not have to spend thousands of pounds on websites. They are becoming increasingly affordable, and as such should be used to their maximum potential.
The next stage is to make the most out of search engines. Adword specialists have the ability to manage campaigns effectively and reduce wasted money and time trying to beat the 'big boys' by just boosting the amount of money bid for key words. Adword professionals constantly update and evaluate a campaign to get the most out of each budget. It does not necessarily need to take a lot of money to get to the top, simply the use of a professional who knows how to get the best results for you.
Another alternative is to use Local Directories such as Yell.com and Touchlocal. For a minimal set amount, local directory services guarantee a number of contacts through their site to you every month to the extent that if you do not get the hits, you do not pay the fees. While similar to AdWords, this service is restricted to local businesses in the sense that each area would need to be paid for individually. Smaller companies can benefit from local customers who are genuinely interested in their services. And if they really wished to push the budget for a maximum return on their investment, a smartly designed flash banner can be bought under any keyword for the entire year. Though the risk of not getting any hits is there, if the keyword is cleverly thought out, there is no reason why many clients cannot be directed to a website over the course of the year, a worthy investment.
Effectively, the benefits to small companies of pay per click services are decreasing over time as demand for AdWords increases, and the supply stays constant (there are only so many ways of saying 'electrical supplies'). The only way of truely benefiting is to let Google Professionals manage your campaigns and achieve the reults that the rest of us would struggle to get close to.The only other alternative is a Local directory service, which has a potential future in an increasingly overcrowded market.
Labels: cheap marketing, google, pay per click