When the economy is in a state of turmoil businesses tend to cut their advertising budgets first. The following is a list of examples of why this is not a good idea:
- In 1981-82, businesses that maintained or increased their ad spend averaged higher sales growth throughout the recession and in the following three years.
- By 1985, sales of the businesses that maintained or increased their ad spend during that recession had risen 256% over those that had cut back on advertising.
- In 2001, a study found that companies that aggressively advertise during recessions increased their market share 2 ½ times the average for all businesses in the post-recession.
That being said, companies still may find it necessary to cut back on advertising spend. If you are an advertiser and are looking for an affordable solution to spend your limited advertising budget, Pay Per Click (PPC) advertising may be exactly what you’re looking for. PPC advertising is a relatively low cost solution for generating traffic to your website; it allows you to see initial results; it is highly measurable and it can give you an immediate return on your investment (ROI) – especially if you’re an e-commerce site.
While it’s important to continuously update your site’s content and optimize it in order to rank organically, it is equally important to have a presence on the search engine results page (SERP) for those keywords that are highly competitive and will take time, through the use of proper search engine optimization (SEO) practices, to have any sort of presence. PPC advertising allows us to have a presence on these competitive queries.
If you decide to use PPC advertising you will not only be limited to the SERPs and keyword bidding game. If you are looking to create a buzz about your site or are just looking to generate more traffic, PPC allows you to create ads (using your own unique and creative ad copy and/or image ad) to display across the web on sites that have similar content as yours through the use of the content network. The content network can be helpful for generating a lot of traffic at a fraction of the cost. It can also be used as a valuable branding tool. (I will discuss the pros and cons of the content network in a future post)
We may all have to make sacrifices during these troubling economic times. If you’re a business owner it is in your best interest to think about the importance of advertising. And if cutting some of your advertising budget is necessary, you may want to consider PPC, which is a viable alternative and more cost effective approach to the traditional forms of advertising you might be used to.
Disclosure: the above statistics were taken from Paul Dunay’s post in Marketing Blog – Daily Fix (11.21.08) http://www.mpdailyfix.com/2008/11/statistics_on_advertising_duri.html