Paid traffic is any customer that visits your website after you have paid for advertising promotions. Many platforms offer paid traffic services including search engines, social media platforms, and media networks. One of the most common forms of paid traffic is Pay Per Click (PPC) advertising which utilizes Google Ad Words. Other types include Pay Per Acquisition (PPA) advertising, Cost per Thousand (CPM) impressions and banner advertisements.
You may know if as PPC (pay per click) or CPM (pay per thousand impressions, the “M” in CPM represents the Roman numeral for 1,000). Google AdWords and Facebook are two of the most popular platforms used to generate paid traffic to websites, but there are also many other paid traffic sources.
Paid Traffic can have an extremely positive impact on your website if carefully planned and executed. One of the benefits is choosing exactly how much you want to spend in order to best direct paid traffic to your website. Furthermore, you can set a daily maximum amount you wish to spend on certain types of advertising (Pay Per Click). You can also use keyword optimization to more carefully lead targeted traffic to your website.
Just because someone clicks on a link at the top of Google doesn't necessarily mean they are going to like your product or service. You are paying to drive consumers to your website, but they have no obligation to purchase anything. Therefore paid traffic doesn't directly increase sales and conversion rates. Poorly designed websites combined with high traffic are detrimental. If browsers leave your web page immediately after entering, your bounce rate will increase. Conversely, a higher bounce rate results in a lower Google ranking, and you're still charged for the page visit.
The goal of paid traffic is to acquire customers at break-even or better. Why cap it off at break-even? Digital Shift is focused on helping businesses make money, and that means that revenue and costs are important. The acquired customer needs to make your business money. Otherwise, your business will dry up.
When it comes to paid search, the company that is willing to spend the most money to acquire a customer will usually win. Targeting customers can be expensive if you are trying to reach everyone and you can run out of your budget quickly if you fail to plan. For these reasons, it is important to define the audience and target your audience through your marketing funnel.
Paid traffic is usually used as a system with multiple campaigns to generate leads for your business. Your campaigns can work together to achieve different goals.