I talk to a lot of business owners about Google Ads and Social Media.
PPC (Pay-Per-Click) advertising has been one of the go-to tools in digital marketing for years, but here's the kicker: it doesn't work for everyone, or every industry, for that matter. Sure, the ability to dial in on specific keywords, audience segments, and demographics is appealing—who doesn’t want to bring in more leads and boost sales? But without the right strategy, PPC can easily turn into a money pit for your marketing dollars.
I think about this a lot and how to convey this to clients, so I thought it would make good post for LinkedIn. I hope you enjoy and reach out with questions or more ideas!
PPC is simple enough on the surface: advertisers pay when their ad gets clicked, effectively paying for traffic. But—and it’s a big "but"—getting clicks and getting results are two different beasts. To make PPC work, you need more than a budget and some keywords. It demands a solid strategy, clear goals, and a deep understanding of who you’re trying to reach.
Far too often, businesses dive into PPC campaigns hoping for a quick fix to their sales woes. Spoiler alert: PPC isn’t a magic bullet. Without a thoughtful approach, you’ll likely end up disappointed—and then you’ve also wasted real money and priceless time.
There is no one right way to build a PPC revenue channel, and how to tailor these campaigns to specific industries is incredibly interesting (to people like me…. ahem.)
Four (and a half) ways PPC ads CAN work.
- Long-term Brand Recall: Some PPC campaigns work because of retargeting and nurturing their brand presence so they are top of mind for consumers that only need them once or twice a year.
- Urgency: Some work because people urgently need the fastest solution for certain problems (plumber, let’s say) and often clients are ready to call the first number they see.
- Customer Life cycle: Some campaigns work by increasing the long-term value (LTV) of their client base by bringing them new offers specific to existing clients. Yes, you can do that!
- Social Proof: If your industry already thrives with an online community, ads can amplify their enthusiasm for the brand with the right messaging. This is particularly effective in industries where the client experience is very important and customers need to commit to a business rather than “try before you buy” (if your product/service is “try before you buy” that’s another good message to amplify!)
This list goes on and on. In my head.?
Here are a few industries can truly thrive with PPC and where it might not be the best fit. Let’s cut through the noise and get real with some benchmarks and case studies to help clarify if PPC deserves a place in your strategy.
The Industries That Crush It
Let’s talk about the industries where PPC is a home run, starting with e-commerce and retail, moving to professional services, and capping it off with real estate. These industries share one thing in common: they have clearly defined customer needs and can see a high ROI when PPC is done right.
- E-commerce and Retail: Maximizing Return on Ad Spend (ROAS) If you’re in e-commerce, PPC is practically your bread and butter. The latest benchmarks from 2024 show that e-commerce brands are pulling in a ROAS of 4:1 on average. That’s $4 back for every $1 spent—pretty compelling, right? But the real winners in this space aren’t just tossing money at Google Ads or Facebook. They’re focusing on hyper-targeted product ads, retargeting site visitors, and optimizing based on real-time data. Case in point: A mid-sized online fashion retailer was struggling with a meager 1.5:1 ROAS in early 2023. By mid-2024, they revamped their strategy, ditching broad targeting for long-tail keywords like “organic cotton summer dresses.” The result? They skyrocketed to a 6:1 ROAS, all within six months. The lesson here? With the right focus, PPC can be a serious game changer.
- Professional Services: Laser-Focused Localized Campaigns For industries like law firms and medical practices, PPC’s localized targeting options are a goldmine. Using tools like Google Ads’ location filters, these businesses can zero in on people searching for services in specific regions. And when you’re dealing with high-value clients, the ROI speaks for itself. Case in point: In 2024, an Austin-based personal injury law firm cut its PPC budget in half but saw a 45% increase in leads. How? By honing in on local keywords (“Austin personal injury attorney”) and optimizing landing pages to appeal directly to their target market.
- Real Estate: Visual, Fast-Paced, and Competitive PPC in real estate isn’t just about getting clicks—it’s about showcasing properties in a visually compelling way, particularly through video ads. As we move deeper into 2024, real estate markets have been unpredictable, but smart agents and developers are leveraging PPC to highlight specific property types and market segments. Case in point: A real estate developer focusing on luxury condos in Miami ran a video-heavy PPC campaign. With aerial footage and a strong call-to-action, they increased property inquiries by 25% and viewings by 12%. The visual element made all the difference.
When PPC Just Doesn’t Fit
While PPC is fantastic for many industries, it can miss the mark for others. Businesses with longer sales cycles, smaller margins, or niche audiences can struggle to see a good return on their investment. Here’s where PPC might not be your best bet.
- Low Margin Industries: High CPC, Low ROI If your business operates on slim margins, the high cost-per-click (CPC) that comes with competitive keywords can make PPC a losing battle. Sectors like travel or food delivery, where profits are razor-thin, often find that PPC doesn’t provide a strong enough ROI. Case in point: A small travel agency spent big on PPC targeting keywords like “cheap flights,” but with a CPC hovering around $5 and low profit margins on vacation packages, they couldn’t turn a profit. Their pivot to SEO and content marketing paid off with much better long-term results.
- Niche B2B Companies: Limited Targeting, Limited Success If your business caters to a very narrow audience, PPC may not offer the precision you need. While platforms like LinkedIn offer more refined targeting, the cost can be prohibitive for businesses with smaller budgets. Case in point: A B2B manufacturer spent over $10k on PPC ads targeting industrial equipment in 2023 but saw very few conversions. By 2024, they had switched gears to account-based marketing (ABM), focusing on personalized outreach to decision-makers. This shift led to a 30% boost in lead conversions.
PPC Is Not One-Size-Fits-All
TL:DR; When it comes to PPC, E-commerce, professional services, and real estate tend to benefit the most. But if you’re dealing with low margins or niche audiences, other strategies like SEO or content marketing might be a better fit.
Before you dive into PPC, be sure to have a solid strategy in place. It’s not about throwing money at ads—it’s about crafting a plan that will drive long-term growth and sustainable ROI.