RSS feed Get our RSS feed

News by Topic

BizReport : Advertising archives : October 15, 2013

SMBs waste 25% of PPC spending

Simple managerial and strategic errors are the reason behind many small businesses wasting nearly a quarter of their pay-per-click marketing budgets, according to new research released by WordStream.

by Helen Leggatt

In a review of 500 SMB client accounts, WordStream found that many are not getting the most out of their AdWords campaigns and, as a consequence, are losing out on business.

Just 1% of small business advertisers made changes to their AdWords account every week in the last quarter and over half (53%) do ad optimization only once per quarter.

Best practices such as proactive account management, improving ad relevancy and mobile optimization are being ignored and 25% of an average $1,200 per month pay-per-click investment is being wasted.

According to WordStream, that 25% wastage is tantamount to an insurance company losing 126 quotes, 569 lost product sales for retailers, 273 vehicle test drive appointments and 157 lost B2B supplier leads.

Furthermore, less than half of small businesses use conversion tracking on landing pages. This means many aren't aware of what is working for them.

"The good news," says Larry Kim, founder and chief technology officer of WordStream, "is that each of these problems can be rectified by applying regular attention and relatively minimal time; it's something even the busiest small business owner can manage."

Tags: advertising spend, PPC trends, search advertising, small business, SMB

Subscribe to BizReport



Copyright © 1999- BizReport. All rights reserved.
Republication or redistribution of BizReport content is expressly prohibited without the prior written consent.
BizReport shall not be liable for any errors in the content, or for any actions taken in reliance thereon.