Digital advertising is a major part of the marketing measures, which accounts for more than half of the spending (“Do search ads really work,” 2017). There are three main forms, such as display ads, social ads, and pay per click (PPC) (“Types of digital ads: PPC search, display, and social,” 2021). PPC is referred to as a method when only clicked ads incur a cost for an advertiser (Sentance, 2018). Estimates claim that digital advertisement will reach 77% of all advertisement efforts (“Digital share of new ad dollars to reach 77% next year, GroupM forecasts,” 2016). Hard-to-find products can be well-suited for PPC advertisements because each click means that the customer is interested in buying them. Seasonal or trendy products are also good for the PPC approach because they are eager to be exposed to the ads, and thus, payment per click is justified. PPC method can be costly, which is why the third category of products are high-margin products, such as cars. The diverse array of products is the fourth category of products, which are well suited for the SEO optimization method because it is related to general term products. In addition, highly specific products can be useful for SEO since there will be little competition in the small niche.
Therefore, some brands or types of products, which gain high margins or are limited in quantity might benefit from PPC because each click leads to sales and profits. However, a diverse array of products, such as jeans, might be better suited for SEO optimization to rank higher within their niche of products. Such an approach will ensure that new customers and customers at the beginning phase of the buying process will be drawn to the ad. However, PPC is more applicable for customers who are already determined to buy certain products. The main reason is that each click should be covered by the sale, and the undetermined customer will lead to losses.
References
Digital share of new ad dollars to reach 77% next year, GroupM forecasts. (2016). Web.
Do search ads really work? (2017). Web.
Sentance, R. (2018). What is paid search (PPC) and why do you need it? EConsultancy. Web.
Types of digital ads: PPC search, display, and social. (2021). Web.