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Seriously, How Expensive has Adwords (PPC) become!

October 15 2015

Shock horror I just checked the cost per click in Adwords for the keyword: “SEO” and guess what? It’s over $63 per click. Can you believe that? How expensive has Adwords become. In my opinion for most business Adwords or what is commonly referred to as Pay Per Click is out of reach of most small businesses looking to get some new business leads from Google.

Adwords is seriously way too expensive for most SME’s.

I also checked some other keywords and the cost for top of page 1 position for the following keywords goes something like this:

Web design $29.00 per click

Lawyers Sydney $18.00 per click

Cosmetic surgeons $56.00 per click

Rubbish removals $40 per click

If you think about it, that means that every time someone clicks on your website for that keyword you are going to drop some serious coin. If we look at the average daily budget this means that most of these businesses to stay competitive and be right at the top in page 1 they are going to have to drop roughly $1000 per day. If you think this is unrealistic or I am making these figures up, well….you are mistaken. I have actually spoken to people in each of these fields and I know exactly what they are spending on their Adwords campaign and the figures are starting to become frightening.

Now just suppose you are starting out in business and are looking to get some new leads to get things going. Where are you going to advertise? Google of course. But this is where the issues start and this is where most small businesses run into a brick wall. They simply cannot afford to be competitive on Google unless they are prepared to out bid the more established companies with deeper pockets. Unless these SME’s are will to risk everything and drop many thousands of dollars then an Adwords campaign is basically useless and not the answer.

Let’s be really honest here, if you are going to be on Google you have to be right at the top. And, if you are going to be relying on Adwords, then you need to be in the TOP 3 positions. Sure, you can be on the right hand side but no one really clicks there. You may get the odd 1 or 2 people clicking on your ads but you really miss out on all those juicy new leads that tend to focus on the top 3 ads or the top 3to 5 organic listings. Basically, you are wasting your time.

Also I just want to throw ‘click fraud’ into the mix here. That’s right! People or generally your competition clicking on your Adwords or getting their friends and family to do this as well so you go through your daily budget. This is a real waste of money and it happens all the time. I have spoken to people who have dropped over $1000 in a day on Google and received 50 clicks BUT not 1 lead, It’s that bad and that much of a problem for many businesses. Just imagine your hard earned money being clicked away into oblivion. It’s such a horrible feeling. If you complain to Google they really don’t do much about it so basically you are stuffed!

So what’s the solution to the problem of over priced Adwords on Google?

There are 2 solutions; 1 really good one and the other terrible. Let’s start with the latter first.

What you can do is look to spend your Adwords money on long tail, less expensive keywords. These are generally suburban or locally based such as: ‘cheap rubbish removal companies Balmain’ OR ‘ ‘liposuction cosmetic surgeons sydney’. These keywords are going to be a lot cheaper to get to the top 3 positions on Google, but there is a catch; they will have a very low search volume. That is, no one is really typing these keywords in. Yes you may be up the top, but there is no traffic. There is nothing that can be done about this unfortunately and this is what make the main core keywords for competitive niches so expensive.

The other better option rather than haemorrhaging your money on Adwords is: SEO or search engine optimisation. This is where you rank organically on Google ( like we do at Hopping Mad Designs for all our main keywords – especially web design – see screen shot). Once you have established the right keywords you want to target and once your SEO campaign starts to gain traction and the results start showing you can ditch Adwords for good.

3 organic listings on page 1 of Google!!!

Screen Shot 2015-10-15 at 2.58.43 pm

This is the beauty of SEO and this is why all SME’s should be thinking about starting an SEO campaign so they don’t waste all their money on Adwords. The other really positive thing about SEO is that people tend to click on the organic listings rather than the paid ones. You will find that you get better quality leads, more often. Please note that SEO is a long term strategy and not for the type of person that wants instant online rankings – they just don’t happen when it comes to ethical SEO practices.

We have found that the tyre kickers and price shoppers go for the glitzy sales pitches on Adwords, where as the more committed and serious customers tend to click on the organic listings.

In summation if you have the money and you are prepared to throw it all away and take a huge risk, go for it. Put it all on Adwords and see what happens. Be prepared to sell really hard as you have to make each lead pay for itself. Alternatively, you can be smart and start your SEO campaign now, give it 6 or so months and watch all the benefits start to flow.

The trick is finding the right SEO agency that will do the right thing by your business. The SEO landscape is full of dodgy brother operators who will fleece you blind and make Adwords look like a cheap option.

If you need some help or advice regarding the best digital marketing platforms you want to try Pay Per Click or SEO, please get in touch with us here and we can offer you constructive advice.