When your business profit margin is very small

In every paid advertisement model, the first thing should be taking a closer look at your business profit margin. If the profit margin is very small, PPC might be a very costly affair. The average cost/click in most niches is $1 to $2. However, some niches have their averages clicks going as high as $10/click. For example, if a sales website converts at 2{49f263cb6e578af9e50f209d05250f07326204f161d107dfbb409073c2ea4d01}, about 50 clicks will be required to get a sale (about $ to $100/sale). Ask yourself whether the profit margin or marketing budget can cover all that?

When selling a new item and nobody is searching for it

When you create a new item or service, the chances are that very few people know about it. Accordingly, there will be very few searches for it, and your PPC will not bear fruits. Think of an entrepreneur who starts a creative service of clowns that sing songs for sick little kids. The searches for singing clowns will be very low because it is a new product. It is prudent to first market the product, share its info on social media, and even try to link the new product with research. Once more people understand about the new product, your PPC campaign will easily convert to sales.

The industry is very competitive and your business lacks a competitive advantage

The market is fiercely competitive today with some investors willing to go to great lengths in securing a monopoly. While it is business and every entrepreneur is targeting a higher profit margin, lack of competitive advantage will work against you. The target audience will be drawn to your competitors and your PPC will not be sustainable. Take time to review the industry you are getting into, evaluate the competitive advantage, and build strong communities before engaging in PPC campaigns.

The target market is not tech savvy

If your targeted market niche is not tech savvy, the chances are that your PPC will not work. Take time to review and understand the target audience for your product or service and only employ PPC if they are tech-savvy. You can do this by reviewing their activity on social media or email campaigns to establish their responsiveness.

If your business is at startup

PPC requires a lot of effort and resources to run that many businesses at start-up can rarely afford. The marketing effort demands a lot of time and in some cases hiring PPC experts. You have to constantly follow the clicks to know how they are converting to sales and make a lot of adjustments; considerations that can take your focus away from building the brand. If you are a new startup, consider signing up for a Digital Marketing course in Singapore, working on building the community, enhancing customer experience, and learning how to outdo competitors.