Maximise your PPC ROI with the Long Tail of Search

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October 2nd, 2007 by Nick

Many people don't know of the long tail of search however it is fundamental to the success of PPC and the ROI from it. I have studied it in depth, not only for us as a company business model and strategy, but from

Google make 99% of their money from advertising revenues online. Google made $3.87 billion in Q2 2007, but more of their revenue comes from a high quantity of smaller spending clients than it does from the high spending, big hitters. I know of one very large high street company that are spending £600,000 per month on Google advertising alone, however the volume of these big hitters is very few and far between.

Amazon, for example, was launched based on the niche of the long tail business model in the book shop industry. Most book stores only carry a few hundred thousand books at any one time and therefore limit the choice for the buyer. The beauty of Amazon is that it is virtually endless choice. From the million plus books that it sells, at least one of each will sell every three months. Looking at all of these books that only sell once, people may say that it is not worth stocking, but if 250,000 books only sold once every quarter, there is 250,000 sales. Based on an average book price of £8 there is £2 million worth of revenue!

Therefore, the importance of the long tail can not be ignored. The Long Tail model is not just two dimension either, it is three dimensional. It can be applied to the number of products sold by an advertiser, and all other elements of a PPC campaign to maximise the return. The long tail statistical model is very strongly adopted to all advertisers who are managed by Click Consult on PPC to get them the very best ROI possible.

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