PPC campaign setup for Google Ads & Linkedin

The realm of digital marketing is ever-evolving, where establishing a strong brand visibility is crucial. One of the most impactful methods to improve this visibility is through Pay-Per-Click (PPC) advertising. However, optimizing PPC campaigns requires strategic innovation and data-driven insights. This case study discusses how we leverage our research methods, reverse-engineer the success of brands like GoDaddy and Wix, and how we can apply these findings to help your brand achieve similar success.

The following image shows how brands can defy reality and by beating search demand limits:

The Challenge

In the web hosting industry, competitive keywords such as “website hosting” are usually the main target. However, our research found that this term only generated around 18,000 searches per month in the US, creating a limit to potential traffic.

Our Findings and Strategy

Using our advanced research methods, we studied the strategies employed by successful brands. We discovered that GoDaddy and Wix didn’t solely rely on targeting the industry-specific keyword. Instead, they amplified their brand names through PPC display and “in-market segments”. The result? They became more popular than the generic term itself, thereby defying conventional search statistics.

The Execution and Assumptions

By meticulously studying similar campaign performance, we concluded that through strategic placement and design of display ads, these brands successfully enhanced their brand recognition.

• US: The search volumes for “GoDaddy” and “Wix” skyrocketed to over 400,000 and 600,000 searches per month in the US, respectively – this came at a time when the generic term for their industry still had a limitation of 18,000 searches.
• Globally: The global volumes for these brands (note “GV” in the image above) suggests that in countries where the PPC was lower, they have spent a great deal more to exceed the 3 million per month search demand metric. 

In certain scenarios, implementing an aggressive pay-per-click (PPC) strategy can be an effective approach for preventing competitors from establishing a foothold in the market.

This tactic can be part of a long-term strategy, especially when the customer lifetime value (CLTV) is high.

Booking.com Case Study

Consider the case of Booking.com, which thrives on high CLTV. Here’s how it works:

Above it is clear that it squeezes smaller competitors out the local markets like a python. Other brands who tried, did not prevail. For example: MartiniqueNYC.com attempted but threw in the towel – most likely as it was not worth it financially with excessive PPC cost. The difference? Well, it monetized the client in one city, once. Yet with Booking.com – it can earn revenue from the client across multiple cities and countries for years to come!

This is likely the strategy deployed by Booking.com:

The initial one or two bookings might run at a loss due to the high PPC charges required to outcompete rivals and secure customers.

From the third booking onwards, the customers start turning profitable, thereby offsetting the initial loss.

This approach ensures that, even in scenarios where the client is not highly profitable, the competition is still thwarted from initiating a relationship with the client, keeping the market more open for the company.

Warnings and Unfavorable Scenarios

It would be crucial to note that not every business can employ this aggressive PPC tactic effectively. Here are instances where this strategy may not be the best choice:

• Low CLTV Businesses: If your business revolves around selling single, low-cost items with a low customer lifetime value, this aggressive strategy could do more harm than good. The costs associated with outbidding competitors may not be recouped due to low profit margins and a lower likelihood of repeat business.
• Reasonable Expectation of Profitability: This strategy can only be justified when it’s reasonable to expect that the client will turn profitable at some point. This expectation should be data-driven, reflecting a realistic understanding of your customer behavior and market dynamics.

While aggressive PPC strategies can be a useful tool in denying competitors a chance to establish themselves, careful consideration of your business model, customer lifetime value, and potential for client profitability is vital before deciding to implement such a strategy. 

Local vs National PPC Strategies: A Case Study of a Florida Registered Agent

In the competitive world of business services, a small Florida registered agent service managed to successfully defend its market share against nationwide providers such as Zen Business, LegalZoom, and even NorthWest Registered Agent. This was accomplished through a defensive pay-per-click (PPC) strategy, tailored specifically for their business model.

The Defensive PPC Strategy

Most US businesses tend to concentrate their compliance obligations in the state where they are registered, which can give local providers a strategic advantage. This Florida registered agent service leveraged this fact and used a defensive PPC strategy. By focusing on local keywords and understanding the nuances of their local market, they successfully defended against nationwide competitors.

This approach works particularly well for registered agent services, where the lifetime value of the client is centered around one location and doesn’t necessitate client spending in other states for compliance reasons.

Comparison to the Hotel Industry
This local-centered PPC strategy stands in stark contrast to the strategy a hotel booking platform might use. A hotel booking platform can afford to be more aggressive with its PPC strategy due to its broader market and the ability to monetize a client in multiple locations.

For instance, a local hotel brand may only be able to monetize the client in its specific location, meaning a more defensive, local-focused PPC strategy would be needed. In contrast, a hotel booking platform could monetize the same client across multiple cities and countries, which supports a more aggressive PPC strategy. The lifetime value of a client for such platforms is dispersed among various states and countries, allowing them to spread their marketing costs over a larger client value.

Understanding the lifetime value of a client and how it is distributed geographically is key to tailoring an effective PPC strategy. For businesses with localized customer lifetime value, like a registered agent service, a defensive, locally-focused PPC strategy can effectively fend off larger, nationwide competitors. Conversely, businesses with geographically dispersed client values, such as hotel booking platforms, can afford more aggressive PPC strategies.