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Could Losing Money in PPC be a Smart Idea?

PPC process
The idea that losing money from a marketing campaign could actually be a good idea is crazy for most business owners. But when you first start using PPC marketing, it can be a very good idea to lose money. Losing money can also be a good strategy if your PPC marketing campaign is only producing mediocre results. How is this possible? It starts with shifting your perspective about what’s really valuable to your business.

The Most Valuable Resource in Business?

Money is grossly overvalued in the world of business. Many business owners hold onto their money at the expense of more valuable resources, the most important of these resources being information.

Information is valuable to nations who are trying to win wars and its valuable for businesses who are trying to becoming more profitable and to get an edge on their competition. Large businesses invest billions of dollars a year into marketing research just to find out who is most qualified to pay for their products and services. They invest money to find out why people buy, why they don’t buy and what kind of marketing campaigns will be most effective in selling their products and services.

If companies are paying billions of dollars to find these things out, what do you think this says about the value of information? Is it wise to invest money into buying information about your target market so that your marketing campaigns and your products can be more valuable to your target market? How much time and money and creative energy could you save in the future by knowing exactly what your customers really want and what kinds of ads they’ll respond to?

If you’re starting to get an idea of just how valuable information can be, here’s something to consider when it comes to setting up your PPC campaign…

PPC Buys Data First, Customers Second

Some of the most successful PPC marketing campaigns started out “unprofitable.” I was talking to a Google rep friend of mine the other day who said that some companies have invested as much as ten thousand dollars into PPC campaigns just to get them converting. Is this ten thousand dollars of lost money? Not when you consider that those ten thousand dollars were invested to find out:

  1. Which keywords would bring the most traffic
  2. Which keywords would convert the best
  3. Which landing pages would convert the best
  4. Which offers would bring in the most revenue
  5. Which upsells and other backend offers would create the best profit margins

Can you jump right into PPC marketing knowing all these things? I doubt it. At best, you can make a lucky guess and get a few of them right. But no marketer can accurately predict the behavior of their target market. You need to invest money into marketing and monitor people’s responses to find out the best approach.

This is the most valuable thing PPC marketing offers. You can quickly gather valuable data about your target market and slowly refine your campaigns. Once you find out what works, it’s all over. You can repurpose those ads to create more effective email campaigns, to optimize your online content and to create print ads that generate more ROI. Would that be worth investing some money into? I’m guessing it would.

By investing time and money into working with professionals, you could gain goldmine of knowledge about your target market within a very short time and create great success long term.

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