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Marketing Insights

On-line Advertising: PPC versus PLAs

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ecommerce-purchaseIt is difficult to prove intent to buy each time someone searches. 60% of your customers actively research before they contact business or walk into a store. At the Search Inside Summit in Florida, several big-brand marketers said PLAs were out performing standard text ads.

The increased success of PLAs (product listing ads)reduced ROI for standard text ads they were running. Running both forms of paid advertising on Google did not equate to doubling sales.

If you have success with product listing ads should you shift your advertising?

AdWords allows you to display two ads for the same keyword – standard text ad and PLA. Standard text ads have always been cost efficient to perform A-B testing of your message to fine tune for best click through and sales. You can use this same technique to A-B test whether PLA will provide better results for your product over a standard text ad.

Competition is fierce in the PLA arena. Cost per click may be higher than you budgeted. PLAs can help you meet end of month sales performance.

PLAs deliver name, price and image to shopper.

Customers that have intent to buy are paying attention to those ads. The ads have prime position on the page – above the fold. The customers already know the product they want. PLAs provide the key price information to the customer whose final decision is driven by price.

Typical text ads are at a disadvantage because they don’t have a picture. They can be written to include price but are lower on the page.

Not all products or services will benefit from PLAs. Some services are not ever advertised with a price.  Some customers are loyal to their store because of the service and/or experience. If you feel you are targeting this type of customer then you have to work continually to insure the experience is unbelievable. You’ll have to use other marketing tactics to stay in front of customers for repeat sales. PPC may be just the right paid advertising that suits your marketing plan.

One size does not fit all.

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Topics: Online Marketing

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