Pay Per Click Marketing – Does It Work For Industrial Companies?
I discovered pay per click marketing in late 2001, launching myfirst campaign with Google Adwords. At the time, I was managinga search engine optimization (SEO) project for an industrialcontrols manufacturer and immediately recognized the potentialof this new channel.
I opened a Google Adwords account, compiled a list of keywords,and developed a small group of text ads. Within five minutes ofmy campaign going live, the four lines of text that I hadcrafted into an advertisement were appearing on the right sideof Googles search results. More importantly, targeted visitorsbegan trickling into my clients website; the power of thismarketing platform really struck a chord with me. I had achievedvisibility on Googles highly coveted first page using the samekeywords being optimized through my “natural search” project.
Let me distinguish between paid listings and natural searchlistings – I am not suggesting that they are equal in value, butrather competitive in value. Natural listings enjoy a higherperceived relevancy in the eyes of search users; however pay perclick advertising, when managed properly, affords businessesimmediate penetration into desirable search engine result pages(SERPS). Additionally, paid search marketing is much moreflexible in its approach to targeting markets and budgeting forreturn on investment.
Search engine optimization is a valuable strategy that candeliver a strong return on investment when properly managed.Businesses can cultivate a web presence that organically rankshigh in the search engine results pages, delivering requests forquote and product sales. By the same token, the effectiveimplementation of SEO is a long term strategy, often requiringmonths of development and significant project costs before areturn on investment is realized.
Pay Per Click marketing on the other hand is completelymeasurable, making it possible to monitor profitability on areal time basis. Furthermore, the pay per click model enablesmarketers to revise their advertisements, budgets, and targetaudience(s) on a real time basis. This flexibility, whenproperly harnessed, is the key to an industrial manufacturerssuccess in the world of Internet marketing.
Most business-to-business companies sell a spectrum of productsor services, organized under different categories, and appealingto slightly different customers. Traditionally, industrialmanufacturers relied on trade journals and tradeshows to promotetheir goods and services. Unfortunately, the costs associatedwith these marketing channels are proportional to the number ofproducts or services being advertised.
For example, if a pump manufacturer wanted to showcase theirentire product line at a tradeshow, more booth space would benecessary to accommodate all of the pump types. Additional costsmight also include the extra freight charges associated withshipping the pumps to and from the show. Ultimately, theresources (read = time & money) required to actively promote aspectrum of products through tradeshows are directly linked toparticipation costs.
This same dilemma extends to trade journal advertisements, wheremarketing multiple products simultaneously translates intomultiple advertisements and escalating costs. If the same pumpmanufacturer wanted to target market each type of pump theysell, they would either need multiple advertisements or one verylarge spread. Promoting an entire product line through a singleprint advertisement typically dilutes the marketing message andcripples the ads return on investment. By the same token,running multiple advertisements or larger multi-page spreadscost money.
Furthermore, successful marketing through tradeshows and tradejournals depends on more than just money. For example, tradeshowparticipation is only effective when the person manning yourbooth is a trained salesman, schooled in the techniques ofbusiness development and lead generation. Simply placing yourlead engineer or technical support rep at a table full ofproducts is not going to produce sales…at least not in thecapacity you expect. In turn, some training may be required tomaximize your presence at an exhibition.
Printed advertisements are typically created by graphic artistsand experienced copy writers who can communicate a productsbenefits and features in a professional and practical manner.These skills are often sub-contracted and usually require inhouse participation to ensure that the marketing message iscorrectly expressed. Aside from the high hourly costs associatedwith graphic designers and copy writing professionals, yoursales team and/or engineers will end up dedicating a percentageof their time reviewing the proposed creative, makingsuggestions, and ultimately approving the finished advertisement- and all of these steps happen before the ad is even published.
Both scenarios illustrate the shortcomings of these traditionaladvertising channels…expensive, inflexible, and a return oninvestment that is difficult to measure. Furthermore, successfulmarketing through tradeshows and trade journals depends on awealth of skills and
expertise that often cost money. Whetherthese additional costs come in the form of sales training orgraphic design and copywriting services, the end result isstiffer marketing costs, coupled with poor ROI tracking.
What can an industrial manufacturer to do about escalatingmarketing costs and aggressive competitors? I can think of threewords for you – Pay Per Click.
Coined by sales professionals as the purest form of directmarketing, pay per click advertising addresses industrialmanufacturers three biggest concerns – cost, feedback, andreturn on investment.
With pay per click advertising, industrial manufacturers canregulate their marketing spend on a daily, weekly, or monthlybasis. Preset budgets make it easy to control costs andestablish a baseline for measuring return on investment. Whenadvertising through the Google or Yahoo paid search network,return on investment is easily calculated through comprehensivereporting that provides all of the information required to makesmart decisions about how and when to optimize ad dollars,driving more leads, requests for quote, and sales.
The difference between pay per click marketing and tradeshows ortrade journals is the extraordinary control available to theadvertiser. An experienced pay per click manager can manipulatethe quality and volume of search traffic that is driven to anindustrial manufacturers website. Through keyword research,targeted ad copy, and an effective display URL, pay per clickmanagers can “choose” the audience seeing their advertisements.Furthermore, they can determine the price (value) of eachprospect clicking through to the companys website, relative tothe product or service being offered.
At the end of the day, it boils down to simple math…letscompare tradeshows and trade journals to Pay Per Clickadvertising. On average, attendance at a single tradeshow coststhe average industrial manufacturer approximately $4,500; thisfigure includes registration fees, sales staff, and travelexpenses. Additional costs not covered in that figure mayinclude the booth display, marketing materials, and promotionalitems.
A trade journal advertisement costs approximately $3,900 for ahalf page, four color placement in a single issue. Expenses notcovered in that figure may include ad photography, graphicdesign, and copy writing services.
Pay Per Click marketing on the other hand is not associated withaverage costs because each campaign is customized to meet theunique needs of the industrial advertiser. Instead, well lookat the average cost per click, which represents a qualified(interested) visitor accessing your companys website for moreinformation on the product(s) advertised. Generally speaking,most industrial manufacturers can expect to pay between 25 to50 cents per click.
In other words, imagine a tradeshow whose participation costswere based solely on the number of people who approached yourbooth looking for more information on the specific products yourcompany sells. From the perspective of a trade journaladvertiser, your costs per issue would be based on the number ofpeople who actually saw your printed ad placement and thenaccessed your companys website looking for more information onthe specific product(s) being promoted.
The quick math suggests that in order for tradeshows to competewith Pay Per Click advertisements, your companys booth shouldbe visited by at least 9000 ($4,500 x .50 = 9000) interestedprospects per show. By the same token, each printed ad placementin a trade journal should yield at least 7,800 ($3,900 x .50 =7800) targeted visitors to your website. Apart from the doubtfullikelihood of either scenario, the absence of detailed reportingthrough either of these advertising channels makes it impossibleto accurately track their ROI performance.
In summary, it would be unfair to suggest that a directcomparison can be made between any of these marketing channels.Tradeshows represent a unique opportunity to form personalrelationships on the front lines, while enjoying valuable facetime with associates. Neither a trade journal advertisement nora pay per click marketing campaign can provide these benefits.Trade journal advertisements are a great branding tool,cultivating perceived value and expertise that translates namerecognition into product sales.
In closing it is most important to recognize the individualstrengths of these marketing channels – however it should benoted that pay per click is the most cost effective andmeasurable form of advertising available.
For more information on Industrial Pay Per Click services,please contact Mr. Wolfe at
About the author:
Payton Wolfe is a co-founder of IndustrialClicks.com and theirDirector of Marketing Campaign Strategy.
Contact Mr. Wolfe with questions at pwolfe@IndustrialClicks.comor visit the company website at http://www.IndustrialClicks.com
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