PPC & Google AdWords: Still Relevant in the Age of AdBlock?

(Article originally published on LinkedIn)

As I discussed in a previous post, the future of digital advertising is transforming from banner and pop-up ads to a world of inbound marketing: quality content that consumers actually seek out. With this transformation underway, it begs the questions of whether businesses should still invest in PPC-advertising services, such as Google AdWords. The short answer: yes.

In this post I will examine the important role that paid search advertising still plays for businesses both large and small, as well as examine the future of the digital advertising industry as the prevalence of ad-blocking usage continues to rise.

What is PPC-Advertising and Why Should Businesses Use It?

Pay Per Click or 'PPC' advertising can be described as an auction in which businesses bid to have their website or products listed in a prominent position when web-users search for keywords related to their business. Unlike traditional digital advertising, with PPC businesses only pay when their ad is clicked, with the hope that a percentage of the users who visit their website will complete a conversion such as purchasing an item or filling out a contact information form.

With over 6 billion search queries occurring every day on major search engines, effective use of PPC can help a small business rise from obscurity to status as a major player in the industry. However, it is important that businesses utilize smart practices to ensure that PPC is most effective and profitable for their company.

Here are some of the key tips to keep in mind:

1. Choose proper keywords. It is easy to assume that your business should target the most popular search terms, but this could be a huge mistake for your company. The more popular the search term, the more expensive each click will cost, which can easily outweigh the return on investment you will receive from PPC advertising. Don't neglect the 'long-tail' of search keywords, which can be more profitable for your company when used in aggregate. For example, the keyword 'shoes' may receive far more searches every day but users who search for 'size 12 Nike frees' are likely to be further along the conversion funnel and more likely to purchase a product on your website.

2. Target, target, target. Beyond just keywords, PPC advertising allows you to target your ads based on geographic locations, times of day or days of the week, mobile or desktop users, and even individual websites where you want your ads to appear. This feature allows PPC advertising to benefit businesses of all sizes from international companies targeting entire countries to local businesses who wish to target specific zip-codes. With fine-tuned targeting, businesses can attract specific market segments who are most likely to purchase their product.

3. Analyze and Refine. With PPC services such as Google AdWords, companies can easily measure the number of clicks their ads receive and how many of these result in conversions. Businesses must then analyze this data and decide whether their PPC marketing ads have been effective, allowing them to decide whether they should alter their ad content, change the keywords or other attributes they target, or discontinue their PPC content altogether if it does not make financial sense for their company.

The Basics of Google AdWords

PPC advertising services are offered by most major search engines, but the largest by far is Google AdWords.

Google AdWords is designed to help businesses in two major ways: the Search Network and the Display network.

The Search Network is what is most likely to come to mind when one thinks of PPC advertising — it is Google's search engine ad results that were discussed in-depth earlier in this article. This method allows businesses to easily reach customers who are actively searching for their specific product or service.

The Display Network on the other hand does not focus strictly on search engine results. Google's Display Network includes a variety of Google websites such as Google Finance, Gmail, Blogger, and YouTube as well as partner sites, mobile sites, and apps. Through the Display Network businesses are able to reach users who might not otherwise be familiar with their product or service, giving them the opportunity to build brand awareness and customer loyalty and increase engagement with customers.

The Future of PPC in the Age of AdBlock

Alright, now let's talk about the elephant in the room. Over 615 million devices worldwide now use ad-blocking technology and roughly 26% of Americans use an ad blocker online. So don't these ad-blocking services affect the reach and value of paid-search advertising? Yes and no.

Search engines such as Google and Bing pay huge commissions to companies like AdBlock in order to display their search ads and establish a 'white-list' of websites and advertisers that can be considered unobtrusive to the user experience.

While pre-roll ads on YouTube can be completely avoided through the use of AdBlock, search engine display ads are still prevalent due to the partnerships worked out between search engines and ad-blocking services.

Although the rise of ad-blocking technology has undoubtedly affected digital advertising and the way users engage with the internet, the continued prevalence of search result ads and the push toward establishing a 'white-list' of advertisers mean that PPC advertising and Google AdWords are still valuable services that every business should utilize.