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Pay Per Click Advertising Delivers Great Returns

Last updated 6 years ago

Have you ever wondered how other firms feel about pay per click advertising?  Do companies believe pay per click advertising is an effective digital marketing technique?  Hinge Research Institute asked these same questions in their recent study called, “How Digital Marketing Delivers Faster Growth and Higher Profits.”  Within the study, two groups were analyzed: 500 professional services firms and an expert panel of 20 online marketing authorities (Hinge).  So what did the study find?

  • High growth firms (considering year-over-year revenue) rated pay per click advertising more than twice as effective for lead generation compared to average growth firms (McVey).
  • Firms that generate leads from their online marketing campaigns grow at a faster rate.  According to the study, “The group of firms growing at the highest rate is generating 40-59% of leads online” (Hinge).  Take a look:

  • Online lead generation is associated with higher profitability.  From the graph below, you will notice firms that generate the majority of their leads online have a tendency to be more lucrative.

Online marketing, particularly pay per click advertising, can put your business in front of consumers researching for your products and services.  The great thing about pay per click advertising is that it’s intent driven.  Let’s say you are a dentist and your practice is located in Annapolis, MD.  With pay per click advertising, when a potential patient types in, “dentist in annapolis md,” on a search engine like Google, your text ad will most likely appear to them.  I’m not sure how much more intent there is than that.

Once you try pay per click advertising, you will probably wonder, “why didn’t I do this earlier?” like many of my clients at ReachLocal have said.

Does your business invest in pay per click advertising?  If so, what effect has it had on your company’s growth and profitability?

About Alan Moore: Alan is an Internet Marketing Consultant with ReachLocal Baltimore.  His mission is to help you increase your revenues and decrease unproductive advertising expenses through proven, online marketing strategies.  He manages over $1.4 million in yearly marketing budgets and has worked with local businesses, agencies and the US government.  Give him a call at (877)655-3438 to schedule a free consultation.



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