Does Pay-Per-Click (PPC) Advertising Work for Service Based Companies?
It depends on who is doing the PPC and how it is tracked.
If paid search is meant to drive conversions (phone calls, online form fill outs and online chats) and business owners do not have the ability to track if clicks turn into actual leads, then PPC should not be performed. If service based business owners cannot measure their paid search advertising, they should not gamble their marketing dollars in hopes for a positive return-on-investment (ROI). A general rule of thumb for advertising should be that if you cannot measure it, do not do it.
If you are a business owner or a PPC manager, then you might be asking yourself the following three questions:
- How can PPC be traced to conversions?
- Who can track PPC to conversions?
- How can an ROI be calculated for paid search?
How Can PPC be Traced to Conversions?
Dynamic-number-insertion (DNI) is how clicks can be traced into conversions. Using JavaScript allows tracking phone numbers to be changed on a website so that each visitor has a unique local or toll free number displayed on the site. If there were ten visitors on a site that is tracking paid search using DNI, then each visitor will have a different number displayed on the site. This is done so that each click can be traced to the search engine or referral site, and more importantly, that the exact keyword or keyword phrase can be known. Knowing which keywords or keyword phrases convert is crucial for PPC managers. If PPC companies do not know what keywords drive leads for service based businesses, then these companies should be fired. Business owners need to hold themselves (if they are doing PPC in-house) or PPC “expert” companies doing their paid search accountable by asking or figuring out how to trace clicks to conversions!
Who Can Track PPC to Conversions?
Smart PPC management companies with the right tools can trace clicks to conversions. These companies also give business owners access to the analytics to know how many clicks turned into conversions, what keywords are driving the leads, and how much was spent in clicks. This knowledge is necessary for business owners to have if they want to calculate an ROI for paid search. Oozle Media offers its clients a way to track their PPC and every other form of advertising (phone books, mailers, etc.) down to the penny for a true ROI.
How is an ROI Calculated for Paid Search?
A true ROI can be calculated from paid search only if the phone calls generated are recorded. Chats and online form fill outs give the customers’ name, and these names can be traced to invoices; thus, dollar amounts. If the calls are recorded, business owners can listen in and get a name which leads to accounts receivables. There are countless other crucial reasons to having each phone call recorded. See call recording case studies on why business owners should be listening to every inbound and outbound call.
Pay-per-click does work for the service based industry looking for leads online; however, PPC should only be done if clicks can be tracked using the right tools. There is a large shift of money going from traditional print advertising (phonebooks) to online advertising (typically through search engines). In most cases, a better ROI is achieved through online efforts over traditional methods. If you are a business owner, or PPC manager, please, please pay for DNI services so you can have a true ROI for your paid search.
Written by: Chris Linford, Director of Pay-Per-Click, Oozle Media
