PPC for I.T. services firm?

by noamb
8 replies
  • PPC/SEM
  • |
Hey folks,

I run a small I.T. services (tech support) firm in the SF Bay Area. (maccentricsolutions.com) I'm considering hiring a PPC pro to create and manage our campaigns. I have a number of questions for those who have experience managing PPC for I.T. service firms:

1. The CPC in our industry and region is quite high. Does this indicate that the ROI of a PPC campaign is going to be low because of prohibitively high ad spend?

2. One PPC consultant I spoke with said that we should expect that after the first 6 months, we will have earned roughly $2 for every $1 of ad spend. Does this sound roughly accurate?

3. How long should I give a PPC consultant to make a campaign profitable?

4. How important is it that the PPC consultant have experience in our specific industry?

Thanks!
#firm #ppc #services
  • Profile picture of the author yoangov
    Hey!

    1. Generally when the CPC is high it means you will have a lower ROI. However, the CPC could be optimized more often than not.

    2. No, it doesn't sound roughly accurate to me. There are many factors involved like how big your budget is, and where are you advertising. Most of the time 100% ROI ($2 for 1 in ad spen) is a good goal, but you don't necessarily have to wait 6 months to get there.

    3. Again, depends on the budget, not time. A PPC Consultant can spend $1k budget in 2 days or in 2 months. Depends on you.

    4. Good sellers can sell anything. Experience is a bonus.

    PM me if you want to have a chat

    Good luck with your project!
    {{ DiscussionBoard.errors[9660878].message }}
  • Profile picture of the author solarwarrior
    Originally Posted by noamb View Post

    Hey folks,

    I run a small I.T. services (tech support) firm in the SF Bay Area. (maccentricsolutions.com) I'm considering hiring a PPC pro to create and manage our campaigns. I have a number of questions for those who have experience managing PPC for I.T. service firms:

    1. The CPC in our industry and region is quite high. Does this indicate that the ROI of a PPC campaign is going to be low because of prohibitively high ad spend?

    2. One PPC consultant I spoke with said that we should expect that after the first 6 months, we will have earned roughly $2 for every $1 of ad spend. Does this sound roughly accurate?

    3. How long should I give a PPC consultant to make a campaign profitable?

    4. How important is it that the PPC consultant have experience in our specific industry?

    Thanks!
    1. Nope. The role of lead acquisition doesn't end after you have sold a service or goods to them. Normally, people do upselling to maximize the ROI of their leads. In industry where people are expected to return on a recurring basis, eg, toothpaste, shavers, the cpc can go up as much as 3-5x the initial cost of acquisition.

    2. Nope. If you earn a ROI of only 100% after 6 months, that is pathetic. You are better off with a saving plan than doing a business.

    3. 1 month should be sufficient.

    4. It depends. Experience generally means they deliver result sooner than someone who doesn't have your industry experience. But PPC consultant are generally trained to understand the lingo and the in and out of a industry to optimize any campaign they are doing.
    Signature

    Offers 1-1 Coaching for Bing/CPA/Clickbank.
    1,248 students have benefited so far!
    {{ DiscussionBoard.errors[9661288].message }}
    • Profile picture of the author noamb
      Thanks for the feedback!
      {{ DiscussionBoard.errors[9662434].message }}
  • Profile picture of the author altonroot
    Originally Posted by noamb View Post

    Hey folks,
    2. One PPC consultant I spoke with said that we should expect that after the first 6 months, we will have earned roughly $2 for every $1 of ad spend. Does this sound roughly accurate?
    You should understand the difference between lead and conversion. You need to nurture the leads carefully and that is the only way you can increase the ROI. PPC setting up is one time process thereafter it requires constant little changes to make it more effective and increase the ROI.
    {{ DiscussionBoard.errors[9663619].message }}
  • CPC. High is a relative term. You probably got numbers from Google's keyword or other similar tool. What you have to understand is that those numbers are estimates based on the average. PPC determines your CPC based on your ad quality and the bid of the competitor appearing below you. With higher quality, your CPC can go down significantly, presuming the same competitor below you which is never the case.

    Competitors will typically bid around the going rate and so should you. So if that going rate is $1 and you find that high, your options are 1) bid lower with understanding that you will not get much traffic since your ads will show in lower positions or 2) don't use PPC.

    Besides, CPC is not the metric to look at. ROI is. I'll pay whatever CPC is needed all day long to get good position and more traffic if it converts and I make a profit.

    Also mentioned by solarwarrior, there's the lifetime value of the customer. Hopefully in your case they won't return soon to have their computer fixed but you can surely upsell them on other things. Make the most of having paid for that traffic, even if they don't buy right now.

    I don't know who your PPC consultant was but I think he was generalizing about waiting six months. It will depend on industry and your own site and lots of other factors. Note that in your case having visited your site, I am not convinced it will convert very well. If so, you will never have a profitable campaign even if a consultant does everything right on the campaign side. Advertising in any form should be a long-term endeavor where you should test and learn. This includes your site.

    If I'm wrong, then who knows what the ratio will be. I've had clients at 2:1 and others at 5:1 and some who didn't know or care.

    It is not very important that the consultant have experience in your industry. It can help of course. But principles of advertizing are pretty much the same whatever you sell. As long as the consultant learns and understands your business, he should be able to help. As yoangov said, good sellers can sell anything.
    {{ DiscussionBoard.errors[9664131].message }}
  • Profile picture of the author yuliak
    Hello,

    Dont go for PPC consultants most of them promise crap and are clueless.

    Why would you even want to hire a PPC consultant when you have the warrior forum.

    I have been pretty lucky with PPC recently for web design, mobile app development and enterprise software development category.

    Here's my experience:

    http://www.warriorforum.com/pay-per-...s-mystery.html

    Hope that helps.
    {{ DiscussionBoard.errors[9665830].message }}
    • Profile picture of the author solarwarrior
      Originally Posted by yuliak View Post

      Hello,

      Dont go for PPC consultants most of them promise crap and are clueless.

      Why would you even want to hire a PPC consultant when you have the warrior forum.

      I have been pretty lucky with PPC recently for web design, mobile app development and enterprise software development category.

      Here's my experience:

      http://www.warriorforum.com/pay-per-...s-mystery.html

      Hope that helps.
      You heard the guy?

      Don't look for shortcuts.

      If you want something bad enough, work your ass off!
      Signature

      Offers 1-1 Coaching for Bing/CPA/Clickbank.
      1,248 students have benefited so far!
      {{ DiscussionBoard.errors[9666641].message }}
    • Profile picture of the author noamb
      Originally Posted by yuliak View Post

      Dont go for PPC consultants most of them promise crap and are clueless.

      Why would you even want to hire a PPC consultant when you have the warrior forum.
      Thanks yuliak. The reason I would hire a PPC consultant is because I'm the business owner and don't have time to become a PPC expert myself. Delegation is the name of the game. Then perhaps the next question I should ask is: how do I hire someone to create and manage the PPC campaign who is worth their salt, and what do they cost?
      {{ DiscussionBoard.errors[9670055].message }}

Trending Topics