As I promise in my last post I will explain you how you can use Product Life Cycle to better understand the PPC advertising field and improve your campaign.
Let’s first start with what Product Life Cycle is? I recommend to google it and read more about it , however I will give you a brief description : PLC is the stage a product/services will go through in its life span. PLC has five stages : R&D , Introduction to the market; Growth; Maturity and Decline. With PPC you can get great amount of traffic and gain conversions. However as an advertising platform PPC does not work if you don’t take into account your product/services life cycle. PPC advertiser should consider every stage of the PLC if they want to create a profitable campaign. I will give you an example of the five stages and how they relate to PPC:
The first stage is research and development where the product is not launch yet. So there is no point running a PPC campaign for something that people cannot have yet. A better decision and investment will be building awareness on the social platforms/blogs and magazines so people can know about the idea and wait to buy it. A lot of technology brands are adopting such strategy.
The Second stage is to introduce your product/service to the market. This is the most vital time to have a PPC campaign running. If people know what your product/service is about because you have invested in product/service awareness in the development stage, now they need to know that they can buy your product. However if you didn’t invested in building awareness and nobody know what is your product about the PPC campaign will help you to boost your brand awareness.
Third Stage – Growth. By the time your product/service have reach growth stage, people will know who you are and what is your product/service about. Now is the time to update your campaigns in terms of what sets you apart from your competitors. You should invest more in understanding customers buying behaviour.
The fourth stage is called Maturity. At this stage your aim will be to boost your PPC budget in order to attract more customers. However your aim is to make sure that your product/service never hits the maturity stage because the line between Maturity and Decline is very thin. However you can prolong the stage of maturity by adding new features to your product or services, but my advice is to start thinking about the first and the second stage.
The last stage is Decline at this stage if you are running a PPC you pour money down the drain. It is a waste of money because no one have interest in your product. You can maintain your existing customer base but don’t think that you can attract new customers. At this stage Instead investing in PPC, invest your money and time into research and development of new product or new features of the existing product or service and start the whole product life cycle over again.