PPC disadvantages

There are disadvantages to be managed.

Competitive and expensive

Since pay-per-click has become popular, some companies may get involved in bidding wars that drive bids up to an unacceptable level. Some phrases such as ‘life insurance’ can exceed 10 GBP per click.

Inappropriate

For companies with lower budget or narrower range of products on which to generate lifetime value, it might not be cost effective to compete.

Requires specialist knowledge

PPC requires a knowledge of configuration, bidding options and of the reporting facilities of different ad networks. Internal staff can be trained, but they will need to keep up-to-date with changes to the paid search services.

Time consuming

To manage a PPC account can require daily or even hourly checks on the bidding in order to stay competitive. This can amount a lot of time. The tools and best practice varies frequently, so keeping up to date is difficult.

Irrelevant

Sponsored listings are only part of the search engine marketing mix. Many search users do not click on these because they don’t trust advertisers, although these are mainly people involved in marketing.

Chaffey, D. and Ellis-Chadwick, F., 2012. Digital marketing: strategy, implementation and practice (Vol. 5). Harlow: Pearson.

Related posts

1. What is paid search marketing?
2. What controls position in paid search?
3. PPC advantages
4. PPC disadvantages
5. Optimising pay-per-click