Pay-Per-Click Advertising Increasingly Important to Small Business

A report released by the Kelsey group and ConStat has some interesting statistics regarding the use of Pay-Per-Click advertising (or “PPC”) in small (and mid-size) businesses.

The report reveals that PPC advertising has cornered a significant piece of promotional budgets among small and medium-sized enterprises (“SMEs”) that have started using it… keep in mind when you read these statistics that they aren’t talking only about online businesses: the ability to geo-target PPC ads allows bricks and mortar companies to play, too.
<ul><li>SME pay-per-click advertisers currently allocate on average 23% of their ad budget to PPC</li><li>4% of SME pay-per-click advertisers expect to increase their PPC activities next year
</li><li>56% of SME pay-per-click advertisers believe in its potential and agree that it will be an important advertising method for their company in the future
</li><li>73% of SME advertisers who are interested in PPC expect to implement it within the next year</li></ul>
I’ve done some PPC advertising– mostly with Google’s AdWords program– and it’s been very successful. A recent AdWords campaign I ran maintained over 10% click-through rates for the week I ran it, and just under 15% conversion rate of visitors to orders. The result was a per-customer acquisition cost of about $3.50… This is unheard of in any other ad medium.