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Chuck Penna

Last week I was asked to present at the Annual Administrator’s Conference “The Learning Edge.” My topic: how to best teach and reach creative students in the classroom. Our company has been hiring creative folks for over 30 years, so I was glad to share my own experience and that of our creative team.

First, I wanted to prove how important creative jobs are in our economy. Many people were surprised to learn that developing creative talent is actually good for business. According to the US Bureau of Labor Statistics, the creative industry is responsible for $700 billion annually in the United States. Demand for creative jobs has risen 40% in the last decade, with one in 12 new jobs being creative in nature.

word-cloud-for-why-we-need-creative-people

A word cloud that depicts the most “common” jobs among creative people

The creative industries offer many more opportunities now than when I grew up. When I was in high school, I had no idea what was out there. While most classes bored me, I loved to draw and write, but I had no idea that I could make money doing what I love. I can remember my dad telling me repeatedly, “art is fun…but you need to find a real job”.

chuck-in-high-school-because-we-need-creative-people

Chuck Penna in High School

Lucky for me, my high school art teacher encouraged me to enter a graphic design contest. After taking first place, I went back east for the national competition where I was first exposed to the creative world. I think I came in last place in the contest, but I got to meet the creative judges who just so happened to be creative bigwigs from different advertising agencies. I couldn’t believe that it was possible to be paid to do what I loved to do (and work with really cool people while I was at it). I had found my future career.

While I know that there are many more creative jobs available today, as I prepared for my presentation, I wondered if our current creative team had an earlier introduction to the creative world than I did. I was surprised to find out many still had no idea in high school that their creative skills would lead to their current job.

I showed videos of our creative folks discussing their high school years. They had some of the same issues I did: not focusing in classes that bored them and not fitting into the perfect student profile. They all agreed that creative exposure was incredibly important. If you take high school students to different creative firms early on, for example, it can get them excited about their creative skills and show them how important it is to start developing their talents early.

At the conclusion of my presentation, a high school principal approached me with a very interesting dilemma. He said his oldest son is a straight-A student who wants to be an engineer and has already picked the university he plans to attend. Then he told me he was concerned that his middle son, who plays lots of video games and spends weeks getting ready for Comic Con, would struggle to find a “real” job. I told him not to worry, his son could be the next Star Wars director or design the next AAA video game hit. The key was showing him that his passion could turn into a job that he will love. The world needs creative people and engineers, and I think it’s about time we started showing our high school students how their creativity can turn into a fulfilling career.

 

 

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iStock_000056378480_LargeWe strive to be a great, creative, inspiring workplace and are honored this year to be recognized by the Salt Lake Tribune as one of Utah’s Top Workplaces in the small business category.

Earning a ranking for this prestigious award is based solely on the results of an employee survey administered by WorkplaceDynamics, LLC, that measures several aspects of workplace culture including Alignment, Education and Connection, just to name a few.

“The Top Workplaces award is not a popularity contest. And oftentimes, people assume it’s all about fancy perks and benefits,” said Doug Claffey, CEO of WorkplaceDynamics. “To be a Top Workplace, organizations must meet our strict standards for organizational health. And who better to ask about work life than the people who live the culture every day – the employees.”

Penna Powers also received special recognition from the Tribune for encouraging “New Ideas.” Salt Lake Tribune writer Rosemary Winters writes – “For an ad agency, empowering employees to share new ideas isn’t just a workplace perk, it’s also an essential piece of the business model.”

We couldn’t agree more. Penna Powers has thrived for over 30 years because CEO and founding partner Chuck Penna’s one rule – “the best idea wins.”

We’re proud to work at an innovative agency and be part of a group that is recognized time and again for being a top-notch place to work. Click here to read more about the Salt Lake Tribune’s Top Workplaces Award and Penna Powers’ innovative approach to communication.

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As you should know, Star Wars Episode 7: The Force Awakens is coming out December 17. That’s just 29 days away! That leaves us with about four weeks before the new movie is upon us. In other words, now is definitely the time to start preparing.

If you haven’t already, you should start by checking out the latest trailer that came out a few weeks ago. Man it’s amazing. Gives me shivers every time I watch it (and I’ve watched it a lot). Tickets went on pre-sale recently as well and they’ve already smashed pretty much every ticket sale record ever.

“American retailer Fandango said JJ Abrams’ film sold more than eight times as many tickets on its first day of release – Monday – as the previous record holder, 2012’s The Hunger Games. Separately, IMAX revealed it took $6.5m in ticket sales on a single day for The Force Awakens, having never made more than $1m in 24 hours previously. The space opera reboot was also the bestselling film on movietickets.com, representing 95% of sales on Monday.” Source

In other words, get hyped. This is going to be good at any rate, now let’s go on to the meat of this post… How should you be preparing for the next Star Wars? Well, don’t you worry. I’ve got you covered. Depending on your level of interest in Star Wars, I’ve prepared several activities you can engage in to make sure Episode 7 is as absolutely enjoyable as it can be.

The Casual Fan

If you have seen all six movies but are more of a movie fan than a Star Wars fan, there isn’t a lot of preparation for you. That being said, you could probably use a refresher on the movies, especially the original trilogy. While Disney has done an marvelous job at keeping the story a mystery, we know that it takes place roughly 30-years after the end of Episode 6. As such, at bare minimum you need to watch Episode 6 before December 17. To be more prepared, you should watch all three of the original films or the entire six part saga. We have four weeks before the movies come out, so if you watch one movie a week, you can easily finish the original trilogy with some time to spare.

If you want to watch the entire saga, the standard 1 – 6 order should work fine for you, though if you want to spruce up your viewing experience, consider the Machete Order or the Ernst Rister Order.

The Absolute Newbie

If you haven’t seen ANY of the Star Wars movies then shame on you! That’s terrible, but it’s not too late. You can be reclaimed. Since you know nothing of the story or the legacy of the Skywalkers, you simply must watch all six movies in preparation. That being said, don’t watch the movies in the 1 – 6 order (the Chronological order). For the ideal viewing experience, watch the movies in the Ernst Rister order (4 -> 5 -> 1 -> 2 -> 3 -> 6). Click here for more information.

Since we only have four weeks left to prepare, you’re going to have to watch one movie every four days in order to finish on time. While I’m still ashamed that you haven’t seen any of the films yet, I envy the fact that you can watch them with fresh eyes. Enjoy it!

The Star Wars Nerd

You’ve seen all the Star Wars movies more than once. You know quotes and famous scenes. Star Wars isn’t just a movie, it’s a part of your childhood. As such, you should take some extra care to prepare for the movie. You can start now by re-watching the six movies in any order or at any pace you wish. On top of the movies, however, you should consider doing some reading. While most of the expanded universe is now defunct, there has recently been a resurgence of new literature to soak your mind with. One in particular was written as a precursor to Episode 7. While it doesn’t contain much in the way of movie spoilers, it does provide a good introduction to the current state of the Star Wars galaxy where the movie takes place. The book is called “Aftermath: Star Wars: Journey to Star Wars: The Force Awakens.” I know the name is long, but the book isn’t. You can easily finish it within four weeks. The book does a good job of providing some insight into what the Star Wars universe is like post-Episode 6.

The Star Wars Fanatic

This last section is for the die-hard of the die-hard Star Wars nerds. Your love of Star Wars has become a part of who you are in ways that aren’t wholly healthy. Either way, if you care about Star Wars this much then it’s probably impossible to over-prepare for the movies. So go hog-wild. Watch all the movies a few times over (I’m on my third round). Watch the Clone Wars or Star Wars Rebels on Netflix. Read Aftermath and any of the other books released (here’s a list of the current cannon/timeline). Read up on Wookiepedia (the Star Wars wikia) and definitely, definitely read all of the Star Wars news you can get your hands on. Just remember, anything you read online that isn’t straight from Disney or StarWars.com is probably false. Oh, and last of all… Get a costume. Make opening night a memory you’ll have for the rest of your life. Go all out and I’m confident you won’t regret it. Here and here are some good places to get started on costume searching. That is all for now. More updates coming soon 🙂

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Background:

Motorcycles are a part of the great American tradition. It’s all about escaping the cages, exploring the open road and seeing the world. However, the fact is that there are certain risks that come with riding a motorcycle. Between 2009 and 2013, nearly 1,100 motorcyclists were seriously injured in Nevada and almost 250 riders lost their lives on our roadways. In an effort to educate riders on safe driving behaviors and decrease motorcycle fatalities on Nevada’s roads, a unique and effective approach was needed. With the Nevada Rider Chalkboard Video, we illustrated the three most dangerous behaviors for motorcyclist in Nevada. With eye-catching graphics and a specifically targeted online media buy, we were able to reach 88.9% of motorcycle riders in Nevada with a frequency of 12. 

Objective:

The objectives of the video were to educate motorcyclists on the dangers of speeding, drinking while riding and not wearing a helmet. In order to do this effectively, we felt we needed to reach 75% of Nevada’s 80,000 motorcycle riders with a frequency of 7.

The chalkboard approach was chosen because it was a unique way to stand out and get the motorcycle safety message to those who needed to see it. We created eye-catching graphics that gave the video a motorcycle-culture look and feel. Artists were then photographed drawing the designs and animation was added in post-production.

Our key messages included:

  • Wear a Helmet: It’s the Law
  • Slow Down: Speed Kills
  • Nevada Riders Ride Sober

Videos :60, :30 and :15 in length were create so that they could be placed on a variety of channels, reaching a larger percentage of riders in Nevada.

Audience:

The challenge here was that we were trying to reach a very specific target demographic – Motorcycle rider in Nevada. Additionally we knew that most motorcycle fatalities and injuries in Nevada involve male riders ages 26-55. We wanted to reach as many people in this target as possible with as little waste as possible.

From a media buying perspective, we knew that online advertising offers some of the best targeting available and with it, we were able to hone in specifically on our target. Creating an online video, allowed us to expand the message to digital channels where younger adults are consuming content.

Additionally, social media consumption continues to rise in the 26-55 age bracket, offering advertisers some of the best targeting available. Once again, allowing us to hone in. Social media complimented the digital efforts by positioning content on each channel that the audience interacts with.

Results:

Although awareness research has not yet been conducted, the number of views that the video has received exceeded our expectations and tells us that we successfully reached viewers and are getting the message across with a high frequency.

  • The reach for this online video was 88.9% and we obtained a 12 frequency.
  • YouTube impressions during the campaign run time were 869,054.
  • YouTube views to date are at 75,934.
  • Pre-roll impressions were 638,485.
  • On Facebook, the video received positive feedback with 496 likes, 35 comments and 76 shares.
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Screen Shot 2015-11-13 at 11

Background:

In an effort to decrease serious injuries and fatalities involving cyclists on Nevada’s roads, the Nevada Department of Transportation planned to launch a public awareness campaign that encouraged both drivers and cyclists to share the road. The goal was to start a conversation about safe roadway behaviors among drivers and cyclists alike, and show them that both parties play a part in keeping each other safe. We used social media to engage with both general and Hispanic markets, garnering 154,202 engagements, 1,796,164 impressions, and 530,959 reach among our audience.

Objective:

The main objective for this 2-week campaign was to garner 100,000 number of social media engagements (likes, shares, comments), so we needed to ensure our content was compelling, engaging and sparked enough emotion to start a conversation among our audience. Secondarily, we wanted to achieve 3.0x frequency, 495,000 reach and 1,485,000 impressions, to ensure that our message was getting out to enough people and was being registered and understood.

Audience:

With two parties using the same roadways but completely different modes of transportation, there is definitely an “Us vs. Them” mentality. Cyclists blame drivers don’t give them enough space. Drivers blame cyclists for following the rules of the road. We wanted to speak to both cyclists and drivers to show them that they are both responsible for everyone’s safety. Both parties need to share the road and do their part on Nevada’s roads to help us reach our goal of Zero Fatalities.

Our two audience segments are as follows:

  • Primary Target: Drivers, ages 18-49
  • Secondary Target: Adults, ages 18-34, with lower incomes, who use bike as primary mode of transportation (skewing male)
  • Language(s): English & SpanishWe took a broad, overall awareness approach with the driver audience, knowing that all drivers needed to hear this message. With the cyclists audience, however, we honed in on a very specific segment that is more likely to be involved in cyclist/passenger motor vehicle crashes, injuries and fatalities: young, low-income adults (primarily males) who use bikes as their primary mode of transportation. Social media was an excellent tool to hone in on this target, as we could not only specify age, location and gender, we could also target by their income, language and interests.

Results:

The costs per engagement (CPE) for the promoted post came in well below the industry average ($1.06) for both the English and Spanish posts – confirming that our content inspired our target to take action. These English and Spanish posts also achieved nearly 14,500 engagements, and there were over 5,000 clicks through to the website to learn more information. The videos came in under the average costs per view ($0.03) and 684,840 impressions. Below is a complete breakdown of the results:

Posts (English):

  • Engagements: 12,173
  • Impressions: 928,376
  • Reach: 300,201
  • Frequency: 3.09x
  • CPE: $0.56
  • Website clicks: 4,999Posts (Spanish):
    • Engagements: 2,278 • Impressions: 218,948 • Reach: 68,866
    • Frequency: 3.18x
    • CPE: $0.66
    • Website clicks: 763Video:
    • Views: 139,827
    • Impressions: 648,840 • Reach: 173,961
    • Frequency: 3.73x
    • CPV: $0.02
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5 Evaluation Event Display 1

Background:

In an effort to decrease pollutants from vehicle emissions, Nevada residents are encouraged to report smoking vehicles to the Nevada Department of Motor Vehicles (NDMV) through the re-developed ‘Smog Spotter’ program. Reporting is available via phone and online through a mobile-friendly form. With a limited campaign budget and the need to get a message out year-round, a unique and effective approach was necessary. By utilizing the NDMV emission lab technicians and creating a crowd stopping event booth, reports through this initiative boasted a year-over-year increase of 9.5 percent.

Planning & Implementation:

The objectives of the campaign were to increase awareness of the Smog Spotter program and to drive report submissions up by 10 percent.

Since the budget was limited, the NDMV marketing team didn’t have the resources to staff a booth at community events where a message such as Smog Spotter would be well received. The marketing team didn’t stop there—instead they persuaded the State Emissions Labs to staff the booths with their employees. What better way to get the message out about smoking vehicles than through the emission lab technicians themselves?

With the manpower in place, the next step was to create a cost-effective, eye-catching and educational event booth environment. The final product included ‘smoking’ retractable banner, table display, handout and unique giveaway items that consisted of:

  • Vehicle document holders
  • Car key-chain with flash lights
  • Pens
  • T-shirts
  • Mugs
  • Window decalsOne of the features that set this display apart from all the others was the use of a fog machine set behind the retractable banner that mimicked a smoking vehicle. This element of the display stopped people in their tracks, giving the emission lab technicians a better opportunity to educate the attendees about emissions and the Smog Spotter program.

The facts about air pollution were three-fold and the table topper helped get the messages across in a clear and concise manner. Messages included:

• Types and sources of pollutants
• Health and environmental affects of excessive emissions
• Benefits of getting a smog check

A die cut handout was provided along with the giveaway items to remind people to be a Smog Spotter and to report smoking vehicles in an effort to keep Nevada’s air healthy.

Evaluation:

Although awareness research was not conducted, the increase in report submissions from fiscal year 2014 to fiscal 2015 shows that more Nevadans were aware of the Smog Spotter program.

  • Report submissions for FY2015 were 9,149 and FY2014 were 8,687. This was a 9.5 percent increase year-over-year.
  • The display was popular and had a continued stream of people, at times two-deep, coming to the booth from opening to close of the events.
  • The display had attractive graphics and visuals.
  • At one event, the MC commented about how noticeable the Smog Spotter booth was due to the fog machine.
  • A number of people commented that they didn’t know the program existed and that they are glad it is available.

 

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5-Evaluaiton Website Takeover Ad

“Stay on the Go” Campaign Increases NDMV Online Transactions by 33%

Background:

The Department of Motor Vehicles (DMV) has a long-standing reputation as a sluggish, red tape-ridden institution with exceptionally long wait-times.

Luckily, this general stereotype comes nowhere near the actual experiences residents have had when interacting with Nevada’s Department of Motor Vehicles (NDMV). The NDMV has made great strides in eliminating the need to visit a physical location through technological tools, like MyDMV online processing, transaction kiosks located in grocery and AAA storefronts, and Dash Pass remote check-in.

Research:

The NDMV’s audience is Nevada’s 1.7 million licensed drivers and vehicle owners accessing 18 offices around the state. However, since campaign objectives are dependent on the use of technology driven tools, a more digitally savvy audience would be more effective to target.

Scarborough’s media consumption analysis for adults 14 – 44 provided valuable insight:

  • Newspaper—23 percent of target audience reads any newspaper, and only 1.6 percent reads it three or more times per week.
  • Radio—22 percent more likely to be a heavy radio listener. 94 percent of target audience listens to terrestrial radio. 15 percent more likely to travel a high number of miles.
  • Internet—24 percent more likely to be a heavy Internet user.
    • 78 percent of target audience uses Facebook.
    • 36 percent of target audience listens to Pandora.
  • Television—45 percent less likely to be a heavy television viewer. 

Thanks to this research, clear target audiences were identified early to ensure the most effective use of a limited budget of $88,000.

  • Primary audience—Nevada drivers (Adults 18-44)
  • Secondary audience—Nevada drivers (Adults 18+)

Planning:

The overall goal of the “Stay on the Go” campaign was to change the perception of the NDMV to—a model agency committed to technology and innovation that ultimately provides Nevada residents with excellent customer service and convenience.

Objectives included:

  • Decrease NDMV physical location patron visits by 5 percent.
  • Increase public MyDMV registrations by 5 percent.
  • Increase public kiosk usage by 5 percent.
  • Launch Dash Pass system.

Strategies & Tactics

Strategy #1—Build awareness of NDMV’s online kiosk and Dash Pass services with paid media. Run one mass media flight including:

  • Radio spots, local traffic tags and interviews
  • Online homepage take overs of Fox5Vegas.com and LVRJ.com

Strategy #2—Employ a hyper-targeted social media promotion effort to increase awareness of online services, drive traffic to the site and educate the public on how to make DMV visits more efficient.

  • Use Facebook behavioral targeting to target those in need of:
    • DMV services that can be done online, such as change an address, register a new vehicle or renew a drivers license.
    • Ways to make a required visit more efficient, such as new residents to the state or newlywed name change.

Strategy #3—Leverage the website as NDMV’s number one employee.

  • Conduct a web audit.
  • Enhance the website look and feel.
  • Change content to show customers exactly how/where to simplify their online experience with the NDMV.
  • Deploy a take-over ad educating visitors on Dash Pass.

Strategy #4—Utilize earned media tactics to fill in non-mass media months throughout the year.

  • Issue news releases and conduct media pitches to introduce new services, kiosks and changes in services.
  • Actively engage audiences via social media to continue conversations regarding the news released.
  • Attend regular radio talk show interviews to discuss what’s new at the NDMV.

Strategy #5—Leverage physical location visits as an opportunity for a guaranteed impression.

  • Develop point-of-service collateral that points customers to the online and kiosk services they can use in the future, such as posters and table tents.
  • Create talking points to empower and activate employees for helping get the message out.
  • Add a motion graphic video to the Motor Vehicle Network.

Implementation:

With clearly defined goals, objectives, strategies and tactics the campaign communication efforts were implemented on time and on budget.

Media recommendations were based on the greatest predicted yield per advertising dollar (least waste) and fastest way to generate actionable response. The approach included:

  • Focus paid media messaging on the use of online and kiosk services to keep residents from visiting physical locations. Secondarily, educate customers needing to visit on the ability to check in early with Dash Pass.
  • Employ communication efforts during March/April and August when the NDMV has historical spikes in transactions.
  • Partner with a single radio group to obtain a longer flight period, to increase message frequency and to negotiate more added value.
  • Run online takeovers on high-traffic websites to gain quick awareness.
  • Use social media behavioral targeting to identify individuals with life changes that require NDMV services, like a status change to married which means a drivers license name change is needed.

Evaluation:

A review of campaign results left NDMV ecstatic that its objectives were achieved. While NDMV physical location patron visits did not decrease due to the historically high volumes of transactions over the year, all other objectives were achieved:

  • MyDMV online transactions increased by 33% year-over-year.
  • Online vehicle registration increased by 478% year-over-year.
  • Kiosk usage increased 9% year-over-year.
  • Dash Pass capacity was reached daily.

 Mass media results included:

  • Las Vegas Radio – 1.685 million impression with 45.8% reach and 4.1x frequency
  • Reno Radio – 335,300 impressions with 33.4% reach and 4.8x frequency
  • One Day Takeover – 607,603 impressions with a 1.40% CTR
  • One Day Takeover – 119,312 impressions with 0.93% CTR

     Note: Industry average for CTR is 0.10%.

Social media results included:

  • 652,600 people reached (60% of total targeted audiences within Nevada)
  • 35,528 post engagements (Likes, Comments, or Shares)
  • 81,920 video views

 

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We revel in the opportunity to work with our clients side by side on safety efforts that are saving lives. While the greatest reward is every helping everyone get home safely, it is nice to also receive accolades for a job well done.

At the Pinnacle Awards, sponsored by the Public Relations Society of America Nevada Chapter, we did a lot of celebrating with our client partners.

Best of Show in Tools and Techniques was awarded to the Zero Fatalities Bicycle Safety Social Media campaign for the Nevada Department of Transportation (NDOT).

First place Pinnacle Awards were earned for:

An Award of Excellence was earned by NDMV for its Smog Spotter Grassroots Event Booth.

Now in its 19th year, the Pinnacle Awards highlight the best public relations programs in Nevada. The programs and campaigns earning recognition this year were awarded for the measurable strides that were made to benefit the community, the environment and the overall safety of Nevadans that included:

Zero Fatalities Bicycle Safety Social Media

Best of Show and Pinnacle Award

With the number of serious injuries and fatalities involving cyclists on Nevada’s roads, the Nevada Department of Transportation launched a public awareness campaign that encouraged both drivers and cyclists to share the road. Through social media, the Zero Fatalities campaign started a conversation about safe roadway behaviors among drivers and cyclists alike, and aimed to show them that both parties play a part in keeping each other safe.

Results:

With the use of both Spanish and English posts, a surge of engagements and click through to the website was achieved.

Zero Fatalities Nevada Rider Chalkboard Video

Pinnacle Award

After a surge of motorcycle accidents in Nevada between 2009 and 2013, an effort to educate riders on safe driving behaviors to decrease motorcycle fatalities was undertaken with the Nevada Rider Chalkboard Video. It illustrates the three most dangerous behaviors for motorcyclists in Nevada.

Results:

A targeted online media buy exceeded expectations for views, reaching 88.9% of motorcycle riders in Nevada.

Stay on the Go

Pinnacle Award

With a long-standing reputation as a sluggish, red tape-ridden institution with exceptionally long wait-times, The Nevada Department of Motor Vehicles has taken great strides in eliminating the need to visit a physical DMV location. Through online tools, like MyDMV online processing, transaction kiosks located in grocery and AAA storefronts, and Dash Pass remote check-in, the Stay on the Go campaign’s aim was two-fold: Have people skip a trip to the DMV and improve the perception of the DMV.

Results:

Online transactions increased by 33 % and through a commitment to technology and innovation, Nevadans have ultimately been provided with excellent customer service and convenience.

Smog Spotter Grassroots Events Booth

Award of Excellence

With a goal to decrease pollutants from vehicle emissions, we launched the ‘Smog Spotter’ program with NDMV. Nevadans are encouraged to report smoking vehicles to the Nevada Department of Motor Vehicles. Spotters are able to report smoke emissions through both the phone and a mobile-friendly online form. Awareness for the program was increased in part by the Smog Spotter booth exhibit that traveled to community events throughout the state.

Results:

Smog Spotter report filings increased by nearly 10% over 2014.

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Google Advertising Cost | Cute Puppies

We’ve all seen (and probably clicked) on an ad in Google. In fact, 1-2% of all Google ads are clicked on. But what did it cost the company?

Advertisers are only charged per click. The price ranges from $.01 per click to over $100 per click, based on the search term. Don’t worry though, the majority of advertisers pay between $1-2 per click.

Advertisers select a list of searches (keywords) they want to have their ad run on. Then, based on the keywords they select the maximum they are willing to pay for someone to click on their ad. I’m going to use an example of a pet store, PetMo.

Keyword List for PetMo

  • PetMo
  • Dogs for sale
  • Dog food

Obviously this list is overly-simplified, as most small businesses have around 1,000 keywords they target. Let’s walk through how much they would be charged per click. PetMo is willing to pay up to $2 per click.

  • PetMo – since this keyword is directly related to the company, even if other competitors might bid on this keyword, PetMo would only be charged around $.03 per click because it’s very relevant to the search. It makes sense for advertisers to bid on their own company name to avoid competitors ranking above them.
  • Dogs for sale – this keyword has little competition, as there are only a few stores in town that sell dogs. Each other store is only willing to pay $1 per click, so PetMo would pay $1.01 per click because of their bid of $2. Google charges $.01 more than the next highest bidder.
  • Dog food – this keyword has high competition, as a lot of stores sell dog food. One store is willing to pay $3 per click, PetMo is willing to pay $2 and other stores under $2. PetMo’s ad would show up in the second position and would be charged the full $2 per click.

If PetMo received clicks on these three ads their average cost-per-click would be $1.01 (.03+1+2 = 3.03 total, then divide by 3 to get average). The costs are dependent on relevancy, the advertiser’s bid and competition for that keyword.

The real question is do Google ads work? The short answer is yes! As an advertiser I have found Google search ads typically outperform any other form of paid advertising. One thing companies should consider before just running Google ads is to actively work on their site’s organic search ranking. Google ads are clicked on 1-2% of the time, but the top search result is clicked on over 33% of the time.

If you’re interested in how much ads cost on some other channels, here’s our suite of articles.

How Much do Ads on YouTube Cost?

How Much do YouTubers Make?

How Much do Ads on Facebook Cost?

How Much do Ads on Twitter Cost?

How Much do Ads on Instagram Cost?

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