Is It Time To Pull Back Your PPC Budget?
January 9, 2009 by Pablo Palatnik
I’m kind of tired of starting every post or talking about how we’re going through this tough economic crisis but it is the very root of our decisions day in and day out in our marketing strategy. It’s Jan. 2009 and I’m facing that decision although I really don’t believe a pull back in budget since for my business and probably many others, the main source of traffic comes from PPC and organic rankings.
I’ve been saying since the beginning of last quater that the first quater of this year will be the toughest quater of all. People have done most of their shopping for Thanksgiving and of course, Christmas. With current news showing a decline in job loss and just bleak news from all sectors of our economy, people are holding on tight to their money, so it may cause advertisers to hold on tight to their budget.
This may actually be beneficial to some of us that are in competitive niches for advertisers to underbid high volume keywords or really decrease their budgets where they aren’t live all day. I’m thinking this may be an opportunity on the B2B end of things but in e-commerce, what really matters is the customer side of things and at the end of the day, ROI is the main topic of all companies and the key component for the decision about pulling back on bids and decrease in budgets.
Companies like eBay and Amazon have decreased their PPC budgets and they bid on most every single keyword you can think of. So, if they do so, should I? That’s what most people would think but again, its all about ROI and trying to get through this time.
It’s time to try to cut back on keywords that arent giving you that ROI instead of trying to cut back budget, at least that’s the first step towards optimizing a campaign and cutting down cost.
