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April 26, 2012

5 Signs That Cost per Click Campaigns Are Dying

Oliver Kern

 

5signscpcisdying

Advertisers and Online Marketers have created and nourished the buzzwords PPC (Pay-per-click) and CPC (Cost-per-click) for nearly a decade. Google and Facebook have a large share of what currently is the most popular currency in search and a very popular method to buy and sell in display. Yet while PPC seems to have become a staple of online marketing, there are clear signs that it is dying out:

1. Too Many People Are Losing Money

Research has revealed that 72% of SMEs using Google Adwords actually don’t recoup their investment. (Source: ‘Workbooks.com’ in September 2011). 

2. PPC Is Not Implemented Deep Enough Into The Conversion Funnel

PPC focuses on the attraction stage and neglects to actually nurture and convert the buyer. This is why, when used alone, PPC can only offer limited returns.

3. Brands Don’t Matter For PPC

A PPC campaign is only about the ad and about capturing the interest of window shoppers. Sex and hard selling discounts do the trick. In Free to Play (F2P) Games the “Free” can’t be big enough, even though Game Developers need their players to spend money. Therefore PPC campaigns tend to attract window shoppers who are focused on cost rather than quality.

4. Web Users Hate Irrelevant AdvertIsements

Web users have learned to filter out advertising on the web, with fewer people clicking on advertising than on relevant content. PPC delivers lower returns than SEO and content marketing. In short, PPC done on its own is costly when compared to the alternatives.
 

5. The Advertising Space Is Moving Toward Buying Specific Audiences

The revolution is happening: since big data has become cheap, companies are capturing more and more date around users, their interests and behavior. 

The revolution is happening: Since big data has become cheap, companies are capturing more and more data around users, their interests and behavior. 

With this knowledge it is possible to identify user segments that matter most for your products. As an advertiser, you can calculate how much you want to spend on acquiring audiecens that are relevant for your brand or product. 
 
Because of this, the click that currently very often functions as a filter for irrelevant traffic in a PPC campaign becomes irrelevant. You are already targeting exactly the user that you want. DSPs (Demand-side –platforms) are winning the battle for advertising dollars as they are already offering these solutions: Identifying your relevant audience and targeting them across hundreds of networks and exchanges. 
 
Google and Facebook have both made moves toward offering better solutions to bid on audience and interests for SMEs. Just last week, Google unveiled a GRP metric and new standard for impressions, which de-emphasize the click. Audience buying is already happening and you should be part of it. 
 
Connecting the right gamer to your online game, iQU offers the ability to identify and attract new gamers using our targeted solutions.
 
 
 

 

1      Too many people are losing money?Research has revealed that 72% of SMEs using Google Adwords actually don’t recoup their investment (Source: ‘Workbooks.com’ in September 2011)?
2.       PPC is not implemented deep enough into the conversion funnel?PPC focuses on the attraction stage and neglects to actually nurture and convert the buyer. This is why  when used alone, PPC can only offer limited returns.?
3.       Brands don’t matter for PPC?A PPC campaign is only about the ad and about capturing the interest of window shoppers. Sex and hard selling discounts do the trick. In Free to Play (F2P) Games the “Free” can’t be big enough, even though Game Developers need their players to spend money. Therefore PPC campaign tends to attract window shoppers who are focused on cost rather than quality.?1.       Too many people are losing money?Research has revealed that 72% of SMEs using Google Adwords actually don’t recoup their investment (Source: ‘Workbooks.com’ in September 2011)?2.       PPC is not implemented deep enough into the conversion funnel?PPC focuses on the attraction stage and neglects to actually nurture and convert the buyer. This is why  when used alone, PPC can only offer limited returns.?3.       Brands don’t matter for PPC?A PPC campaign is only about the ad and about capturing the interest of window shoppers. Sex and hard selling discounts do the trick. In Free to Play (F2P) Games the “Free” can’t be big enough, even though Game Developers need their players to spend money. Therefore PPC campaign tends to attract window shoppers who are focused on cost rather than quality.?
Oliver Kern is iQU's Director of Performance and Intelligence. When he is not profiling gamers and predicting their behavior he plays online games, enjoys good food and spends time with his family. Follow his thoughts @freewebgames
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