With the rising CPC prices, many small business owners are wondering if the Google AdWords tool is still a viable option for their business. According to a recent article by the New York Times, many small businesses are abandoning the tool due to the AdWords cost. But, is this really the case? The recent article in the New York Times states:
“Concern over the rising cost of keywords has become increasingly common as online advertising has become a standard channel for large companies. Attracting those additional advertisers has been great for Google, which reported a 42 percent increase in paid clicks, year over year, for the second quarter of 2012. But the heightened competition has driven up the prices for keywords and made it harder for small companies.”
This article is actually a little misleading and may be detouring SMBs from what’s really going on with the Google AdWords tool. Yes, the cost of keywords has risen, causing concerns; however, according to Google’s latest earnings reports, CPC prices are down.
Due to the fact that Google paid-search has been complex in previous years for traditional SMBs, they’ve turned to SEO and social media optimization instead of paid-search. Contrary to the New York Times article, SMBs are now reporting favorable results with the use of Google AdWords, even with the current CPC costs.
In fact, Google reports the majority of their one million advertisers are SMBs. So, where is the New York Times finding SMBs are abandoning the Google AdWords tool due to rising CPC prices? It turns out, the cost of CPC isn’t the only factor that needs to be taken into consideration.
Our SEO company in Utah, Local One, understands the diversity of marketing options available to SMBs, which have become simplified over the years. SMBs who have a budget to utilize paid-searches are doing so, while others are advantaging from a wide range of other channels, including organic search rankings, which is often less than the AdWords cost.
As Google continues to improve and enhance AdWords, many SMBs are diversifying their ads to new areas. Yes, in part this is due to cost, but it’s also due to an evolving market and new marketing channels, such as mobile and social media marketing.
The abandonment Google AdWords from SMBs can’t fully be blamed on the CPC prices, as many SMBs are more interested in SEO and social media. As Google continues to adapt and simplify their Google AdWords tool, many SMBs are likely to jump on board, even with the AdWords cost. Although the cost may be rising for some keywords in specific categories, the overall benefits are pretty hard to beat.