Pay per Click Advertising Cost Analysis : Google, Yahoo, BING, Facebook, Twitter, Yelp, Angie’s List

Internet advertising is a powerful tool for retailers to gain new customers. Although many business owners know little about the science of web analytics and mobile e-commerce. Managers should be asking their Internet marketing team targeted questions. A bi-weekly or monthly report summary should reveal whether pay per click (PPC) advertisements yielded a positive return-on-investment (ROI) says James Dean @

CPC comparisonOverall, PPC rates for niche products are relatively cost effective, on-average .86 cents per click using Google Adwords, Yahoo and BING. But there are some broad category businesses such as ‘Education’ that are outrageously expensive (CPC) versus Click through Rates (CTR per thousand). An organization offering online education, for example can pay as much as $25 per click in this highly competitive Internet space.

In some instances, the cost per click is simply not a sustainable expense most businesses. Search engine ranking is also a function of budget and how much a business is willing to spend to gain the top ranking. A click through rate (CTR) of 4% to 12% is generally consider a successful Internet advertising campaign metric (ROI).

newsMr. Dean says it’s critically important for a small business to monitor their AdWords and set a daily limit (not to exceed amount). Although, setting a daily PPC limit might be too low to be effective versus the industry competition.

A good rule of thumb when setting up online advertising campaigns expect to pay double on Google Adwords versus Yahoo/BING.  But keep-in-mind using Google your reaching 3x the volume of people online vs Yahoo/BING comments Mr. Dean. To be successful, it really all depends on your product, pricing and competition when accessing Internet advertising strategies.

demographic-social-media-networksGoogle dominates the Internet search engine application among consumers with a 70% U.S. market share vs Yahoo / BING 22% and 8% others. However, the organic search market share calculations do NOT reflect the shift among consumers with over 55% now shopping for products and services within their social media networks in Facebook, Google Plus and Twitter. Cost per action (CPA) is also a popular advertising metric now being used to measure the success of social media ads. reports that 65% of all people access the Internet using a smartphone or tablet wireless device. However, only 40% of businesses have a “responsive website design” optimized for display on mobile devices. Mr. Dean recommends mobile web development using HTML5, Google Android and JQuery.

Increasingly mobile social media networks like Facebook are becoming highly effective mobile advertising platform based on unique user profile information and the ability to track personal interests in real-time.

“Facebook Custom Audiences” enable businesses to retarget consumers that have already shown interest in similar brands. The ability to retarget customers is highly effective tripling the CTR. By retargeting mobile ads in Facebook, the business is able to refine the user experience more often leading to a purchasing action online. reports positive ROI for a “leading” global retail client, with 110% ROI, 66% lower cost per click, and 30% lower cost per acquisition using Facebook mobile advertising.

Each client is different and pay per click strategies must take into account continuous market changes that significantly affect the cost per click (CPC) and click through rates (CTR) says Mr. Dean.

Search-Engine-Market-Share-Global-Q4-2013Google Adwords and Yahoo/BING tools are robust allowing us to automate monitoring of web analytics. For retailers targeting geo-location data is key to reaching mobile Internet users with special deals and coupons through FourSquare, Yelp and Facebook.

Yelp, recently bought by Yahoo!, offers 120 unique visitors per month versus Angie’s List with a much smaller user base but an effective repeat business model. reports on-average that business spends $4,200 per year on Yelp can yield $23,000 return (5.4x RIO).

Angie’s List offers a ‘repeat business referral advertising’ model geared towards long-term customer brand loyalty generally found among building contractors and oriented to small businesses. For example, a typical small business advertising on Angie’s List spends about $200 per month to be listed near the top and gains about 3-to-1 return on the advertising investment.

Social media content marketing can be just as effective, if not more effective than pay per click ad campaign. Although the reader must gain value from the social media article or social network blog posting. reports that YouTube video is highly effective capturing over 2 BILLION viewers per month. So be sure to embed your business website link in the YouTube video description. Video blogs have tremendous upside, if your clip goes viral … it could be viewed by millions of consumers at almost no cost on YouTube. By allowing, Google Adsense, the business may also pick-up additional revenue from affiliate advertisers on YouTube.

Demographics are key to social networking, for example, Instagram and SnapChat are popular venues to reach age 12 – 25 year olds. While Google + and Facebook gains potential new customers age 34 – 65 year olds.

A common failure, Mr. Dean points out among businesses is their missing the fact that 68% of consumers prefer to buy products and services locally, in close proximity to their surrounding neighborhood. Therefore, geo-location mobile advertising campaigns often deliver the best overall return of repeat business and sustainable revenue growth.

Developing Pay per Click Ad : Consider the following as you Research and find the Best fit for your business;

1) What’s your advertising budget? Use the worst case revenue projects and build around it.

2) Define your loyalty customers … know the demographics, build a solid profile of interests.

3) Experiment with Pay per Click tools like Google Adwords, Yahoo/BING and Facebook. What seems to work best for your technical ability and time available time to manage the PPC campaigns. Web analytics can be a time consuming highly technical skill which changes continuously … its a full-time job.

4) Rotate keyword phrases monthly as consumer organic search patterns and online behaviors shift frequently. Web traffic can vary drastically with only a slight variation among keyword phrases so be precise in your ad postings. Learn Google Adwords for mobile and Yahoo / Bing Advertising tools.

5) Build your social network … add friends, acquaintances and relationships. Space out your social media posts, no more than three per day (morning and late afternoon).

6) Content marketing is a creative process vary your posting material … write articles, post video clips and photos that invite a personal connection with the audience. Get to know your customers by showing them what, who and how your business is performed. Create brand awareness, build your customer relationship management solution.

TIP OF THE DAY : Leverage popular news content in the mainstream media so it redirects the online user to your personal blog and/or business web page. For example, is a great way to set-up a mobile news content page for video clips, articles and photos that adds followers to your social network. This continuous flow of unique content online reminds people of your business. Become a news content leader, don’t follow the mainstream media, find and respin news that adds value to your customers.

2 thoughts on “Pay per Click Advertising Cost Analysis : Google, Yahoo, BING, Facebook, Twitter, Yelp, Angie’s List

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