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Does it matter how much you spend on advertising? Does it matter how much you spend on pay per click advertising? I’d say it only matters if you are not achieving an ROI on your investment. Or, rather, it doesn’t matter if you are achieving a positive ROI.

It seems that Google is making hand over fist on the top 20 PPC ad keywords.

No wonder. Look at the top 5:

  • Insurance
  • Loans
  • Mortgage
  • Attorney
  • Credit

If you are in the banking, mortgage, credit, or legal business, then you have to pay top dollar for your PPC ads or risk big chances that you won’t get much traffic from your advertising. But the bottom line for any advertiser is, How much ROI do you realize based on your ad spend?

If you are a small insurance company, for instance, and you target your PPC advertising toward a specific niche within the industry or a geographic location, then you can cut your ad spend down based on a narrower market definition. You are also more likely to realize an ROI.

The key is to target your advertising to the specific niche you want to do business with. Narrow your market down as far as you can before you advertise. Long tail keywords are much more profitable for smaller budgets than general keyword phrases.

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