If businesses are going to pay for traffic […]
Can a TV station offer commercials to an air conditioning contractor that will only air in houses that have broken air conditioner in the middle of summer? Google and Bing can. Now you understand search engine pay-per-click marketing. You choose exactly the keywords (search terms) for which you would like to appear on the results pages, then you only pay when a searcher actually engages with your ad. If you choose the keywords wisely, the chances of converting that visitor into a customer are very high.
If you can confidently turn most leads from the campaign into a customer, it becomes a risk-free investment.
Imagine a small plant and tree nursery in Tampa off the main roads with limited visibility to customers. It sells citrus trees and happens to have a connection to a citrus grower in Orlando that grows almost every type of citrus tree imaginable. This nursery owns exclusive rights to sell the specialized trees from the grower in the Tampa area. Nobody else in Tampa can sell these unique trees.
While common citrus trees like Navel Oranges and Ruby Red Grapefruit are readily available for very low prices at The Home Depot, this nursery has a huge competitive advantage for more obscure citrus trees and he can sell them for much higher margins.
This nursery must start a Google and Bing pay-per-click campaign immediately targeting the types of trees that he sells. A non-savvy advertiser would bid on keywords like:
While these keywords do represent product the small nursery could provide, there is a lower chance of conversion into sales. Most searchers who would click to the nursery’s website for an “orange tree” search would end up buying from Home Depot because it would be cheaper and most likely closer.
But if the owner only bid on keywords for types of trees that The Home Depot did not inventory in their Adwords campaign, terms such as:
Then the garden center is virtually assured to make money on the campaign. Anyone searching to buy those specific species will immediately decide to drive to his store because they will soon find out it is the only place in town they can make the purchase. If he wanted to get even more targeted with the campaign, he could insert the words “buy” or “for sale” in the keyword phrases he is bidding on to make sure gets someone with intent to buy rather a student researching for a book report.
If nobody searches those terms, nobody clicks, the nursery owner is not charged a dime. No businesses should not fail to take advantage of risk-free advertising.