In our continuing coverage of local Internet marketing rip-offs, the next in our list is Pay Per Click Advertising scams. For those who are unfamilar with pay per click advertising, it is the #1 form of advertising online, and it is the fastest growing advertising online and off.
Although there are numerous variations of it, most PPC advertising is sold on popular search engines like Google, Yahoo and MSN.com. When people search for keywords, advertisers like local businesses can insert ads into the results. For example, if you sell titanium golf clubs in Augusta, GA, you can advertise on the search result, “Titanium golf clubs Augusta GA” on Google.
And why would you want to? Because someone searching that term is about as targeted as you are going to get in a customer, and you would probably want to connect with that person.
Now what makes PPC advertising so attractive and potentially profitable is the fact it is a result oriented form of advertising. You only pay for individuals that click on your ad and go to your web site. You only pay for results. You pay a price per click. That price depends on the competitiveness of the keyword and the position of your ad, first, second, third place, etc. There are countless other benefits to pay per click advertising. For example…
- You can set daily expense limits.
- You can start and pause your advertising at any moment.
- You can bid on as many related and targeted keywords as possible.
- You can track all aspect of your campaign, including traffic, clicks, conversion, earning per click, etc.
- You can set up a campaign in less than an hour and have your ads live immediately.
- You can have complete control over every aspect of the campaign, in fact PPC is designed for even novice to build and maintain.
Overall, pay per click advertising can be very cost effective, in fact, it often provides advertisers with their highest return on investment when it comes to marketing.
So this is how companies are scamming local businesses with PPC advertising. What they do is set up a PPC campaign for you on a major search engine like Google or Yahoo and charge you an exorbitant price. A price that is way out of line for the services they provide.
They will charge either an extreme multiple of the cost of the click, like five times as much as you would pay if you controlled your own campaign. Or they will charge you a flat fee for so many clicks per month. The bottomline is you are paying far and above the going rate for the traffic.
There are companies offering a value added service to pay per click advertising. In fact, one company will provide you with tracking 1-800 numbers so you can track both phone and web site leads and sales. However, many companies take advantage of the naivete of local businesses and basically screw them. Here is a perfect example. We talked to one individual that got suckered by one of these companies. She was paying about $1,000 per month for their services. She had know idea how much traffic she was getting, and where it was coming from. She did know it was not leading to new customers.
If your are going to benefit from the incredible opportunities of the Internet, you must be in the know. Know what the options are, and the going rate.
If you are a local business owener and have been scammed by unscrupuous Internet marketing companies please provide your story in the comment section.
Regards,
Fred Waters