Over the past 18 months, the cost per click for competitive terms in technology has skyrocketed.
Costs for terms associated with ERP Software and Cloud Solutions have increased by as much as 189% over the past 18 months. Many CRM, ERP and Managed Service providers are now being completely priced out of the market. And as many tech companies can no longer compete, they start doing the unthinkable: turning off PPC.
Why is This Happening?
Truth be told: the market is getting saturated.
You see, technology has evolved – and so has society. We now live in a world where everyone and their grandmother is setting up Facebook ads for their side hustle, your teenager daughter has monetised her Instagram account, and your golden retriever is a star on TikTok or something. In other words – we’re exposed to content and ads all day long.
This has made an obvious impact on marketing. As cold calling is becoming more challenging, and massive conglomerates are dominating the top spots through aggressive SEO efforts, PPC proved itself to be one of the few ways a smaller company could place themselves at the top and actively compete with the big dogs.
However, in a classic case of supply and demand, more companies are competing for a limited number of paid positions (4 at the top, 3 at the bottom) and this inevitably leads to an increase in costs.
Larger companies with impressive budgets are rarely worried about this increase. Instead, they effectively end up inflating the cost and forcing their smaller competitors completely out of the channel.
The situation is now severe for many companies out there. We work with a lot of well-known technology brands, and we have actually had partners calling us up and asking our agents not to click on any of their PPC ads while researching their products. One click too much could be enough to break their budget.
Optimisation is Key
So, should tech SMEs simply turn off their PPC budgets and leave the channel entirely? Definitely not! But you need to ensure that your PPC activity is perfectly optimised.
- Split-test: I recommend that you always start by split-testing your landing pages to ensure that they’re perfectly optimised for conversion and data capture.
- Apply heatmaps: Does the content on your landing page actually appeal to customers? This can easily be checked by deploying a heatmap tool, such as Hotjar, to track where visitors spend time on your landing page.
- Traffic Visibility: It can also be helpful to track the companies visiting your landing page – regardless of whether they fill out a form – with a tool such as Lead Forensics. This gives you complete visibility of any traffic that falls away, thereby offering your sales team an additional opportunity to follow up.
Yes, your CPC will still stay the same. But by optimising your landing page, you ensure that you’re deriving maximum insight and opportunity from the money you’re spending. This way, you can still compete with the big dogs.
Do you want to learn more? See how we generated a 485% PPC ROI for theEduStore.