It is important to think differently when running PPC campaigns, especially if you are advertising in a competitive industry. When you anticipate and prepare, you have an advantage over your competitors.
In this blog post I will review a concept that I had previously touched upon in an earlier post: Cyprus Bank Run: A Digital Marketing Opportunity? In that post I wrote about piggybacking recent trends that were rising in Google Search results and then advertising off those keywords.
Here, I will show you a similar idea. However, instead of leveraging recent trend data, I will show you how to use keyword arbitrage to be the only company competing for eyeballs on your Pay Per Click ads.
Quick Note: These opportunities are difficult to find, but with the help of iFuturist I am able to zero in on a bunch of good ideas daily.
Arbitrage traders are traders who seek price discrepancies for equivalent goods in different markets. In this case the goods are the keywords you are bidding on and the markets are two different groups of consumers who are expressing intent for a particular product or service.
In this example the two groups are:
- People who are looking for Payday Loans Online and
- People who are looking to apply for Food Stamps Online.
Wait! These two groups of people want totally different things. One group is looking to get quick cash deposited directly into their bank account and the other is looking to get Food Stamps so they can put food on their table.
That may be true, but, you can also assume both groups are economically challenged (temporarily, at least).
It’s not really a stretch to assume that people who are looking for Food Stamps may also be in the market for a quick no-hassle loan funded directly to their bank account, a perfect impulse that can be easily swayed by some creative ad copy and a nice landing page.
Now comes the arbitrage opportunity. We did some quick research on keywords related to consumers looking for Payday Loans and consumers looking for Food Stamps, we looked at Search Intent, Volume and Average CPC (click here for a sneak-peak at the keywords).
We observed that it cost a lot more to run a Pay Per Click campaign on words related to Payday Loans compared to words related to Food Stamps. A lot more!
If you had a marketing budget of $10,000 and chose to run your Pay Per Click campaign on keywords associated with Payday Loans, you would spend about $1,000 a day and get almost 100 clicks costing you around $10 per click. You would run through your budget in 10 days and get a total of 1000 clicks.
BUT! What if you took that same $10,000 and ran a Pay Per Click campaign on keywords associated with Food Stamps? You would spend about $31 a day and get the same 100 clicks costing you ONLY $0.31 cents per click! Not only are you getting the same amount of clicks per day, but you are able to try many different variations of your PPC ad copy and landing pages to help you increase your conversions because your campaign will be running for 322 days.
WAIT! You must be thinking these people want different things and the ads run on Food Stamps won’t be relevant for someone searching for Payday Loans. BUT, remember economically disadvantaged people need Food Stamps and they also need Payday Loans. It really isn’t a stretch.
Another way to think about this is to think about Gerald J. Ford Stadium in Texas, which has a seating capacity of 32,000 people. This is the same amount of clicks that you are going to get over 322 days if you spend the same $10,000 running a Pay Per Click campaign on keywords associated with Food Stamps.
If all 32,000 people who are interested in Food Stamps arrived at the stadium in double decker buses with a capacity of 80 people on each bus, you would need 400 buses to fill the stadium.
Is it really a stretch to think that 3% of these people would not be interested in Payday Loans?
You only need about 12 buses to be interested in Payday Loans for your Pay Per Click campaigns to make economic sense. I am going to bet that a lot more than 12 buses would be interested in Payday Loans considering they are already having trouble putting food on the table!
Note: This post is making a few assumptions that I find important to call out.
- Your CTR rate for the PPC Arbitrage ads are going to be below industry standard. It is your job as a marketer to come up with relevant ad copy to ensure your message is compelling.
- You will need to run PPC Arbitrage campaigns in a separate Google Ad Words account so you do not damage your existing QS scores.
For more information on iFuturist and how you can use it to help with your Pay Per Click campaigns, please contact firstname.lastname@example.org.
Also, don’t forget to subscribe to this blog for more interesting updates and follow us @iQuanti.