What Is the Best PPC Niche? (Pros & Cons of the 5 Best PPC Niches in 2022)

November 24, 2022

Here are the 5 best PPC niches you can go for in 2022.

  • Dating
  • Healthcare
  • Real Estate
  • Automotive
  • Travel & Hospitality

As of July 2022, there are approximately five billion users on the internet, which makes it a huge market for product clicks, marketing campaigns, and paid search.

PPC ads have its fair share of advantages that can be very hard to ignore, but you’re still paying a certain amount of money regardless of whether you get profits or not. It is especially expensive at the start of a business and can quickly deplete your profits.

Local Lead Generation, on the other hand, uses organic SEO tactics that not only allow you to generate free traffic, but also lessen your overhead costs in the long run.

With Local Lead Generation, all you have to do is organically rank your website specific to a particular search term or query. Once your website is at the top of Google’s SERPs, the passive income rolls in as local businesses use your site to generate leads and convert them into sales.

What Is PPC?

PPC, also known as click advertising, stands for pay-per-click and is one of the most common digital marketing strategies businesses use to promote a service or product. While running a PPC campaign or starting a PPC agency can often be costly, the results can be very rewarding with the right strategy and a profitable niche. 

Starting a PPC agency entails a lot of PPC management, such as niche keyword research, Search Engine Optimization (SEO) using both local SEO and organic SEO, developing brand awareness, planning a PPC campaign strategy, identifying your target audience, and many more. 

However, none of these would matter if you don’t find the perfect niche that suits you and your digital marketing business. Here are 5 of the Best PPC Niches you can explore for your PPC advertising service in 2022.

Best PPC Niches in 2022

1. Dating

According to a study conducted by Business of Apps, the dating app market generated over $5.61 billion in 2021. 

Approximately 320 million people globally also use dating apps, with Tinder and Bumble leading the way. That’s over 19% of users on the internet.

Gone are the days of traditional, face-to-face dating where you go on several dates in order to find the most compatible person for you. Users are flocking to dating apps to either find a significant other or just casually go on dates with other people.

Here are some pros and cons of launching a PPC campaign in the dating industry.

Pros

According to BlazingBronco.com, the dating industry has one of the highest click-through-rates at 6%. A click-through-rate is the percentage of people that click a hyperlink that leads to an ad. 

The dating market has an average conversion rate of 9.64%, which is much higher than the average of 3.75% across multiple industries. 

You have a very large target audience, which includes various age groups, sexual orientations, nationalities, and many more.

Annual dating app revenues have increased regularly, which makes it a potentially profitable niche. It is also projected to increase even more because of the influx of newly registered users every day.

Cons

The average cost-per-click for dating is $2.78, which is slightly higher than the average of multiple industries at around $2.69.

As of November 2022, there are over 1,500 dating apps around the world, which means competition will be tougher. In addition, you’ll have to compete with big companies such as Tinder and Bumble, unless you work with/for them.

While the industry has been in an upward trend and is projected to keep growing in the coming years, some experts have showed that 2022 could be a slow year for the dating market.

There are complaints from users that finding a “match” is difficult, even if you buy a premium account. This not only takes away existing customers, but also scares away potential users who read reviews and testimonials on the internet.

2. Healthcare

According to a study conducted by globalnewswire.com, the healthcare industry was valued at around $6872.86 billion in 2021 and is expected to grow to approximately $7548.52 billion by the end of 2022, which is equivalent to a compound annual growth rate (CAGR) of 9.8%.

The healthcare sector also takes about 18% of the world’s GDP, further proving just how large and fast-growing the healthcare industry is. 

There are also approximately 28 billion search queries annually regarding healthcare in the United States alone, which makes it an excellent niche for running PPC ads.

Here are some pros and cons of launching a PPC campaign in the healthcare industry.

Pros

Whenever someone clicks a PPC ad and avails of a specific healthcare service, that person might become a regular client. 

A single click by a potential customer can often result in more potential customers because of referrals. 

Healthcare will always be profitable simply because it is a necessity that people give utmost importance to. Simply put, people take care of their health. 

Cons

Healthcare is not as easy as other niches because it deals with human life. Not only does healthcare require your ads to be up-to-date, it also needs to be authoritative if you want to turn clicks into clients. 

You have to compete against hospitals, clinics, pharmacies, and other institutions that are already established in the industry. 

Healthcare PPC ads typically have a click-through-rate of 1.79%, which is lower than the average of 1.91% across all sectors. 

PPC clicks for healthcare cost around $3.17 per click, which is higher than the average of $2.69 across multiple industries. 

3. Real Estate

According to grandviewresearch.com, the global real estate market is worth approximately $3.69 trillion in 2021. Further research shows that the industry is forecasted to expand to around $5.85 trillion by 2030, with a CAGR of around 5.2% percent. 

Running a real estate PPC campaign introduces you to a sea of buyers and clients that not only increases traffic, but also boosts potential sales.

Here are a few pros and cons of launching a PPC campaign in the real estate industry.

Pros

Real estate only has a $2,37 cost per click, which is much cheaper than the average other industries at $2.69

The click-through-rate of real estate is around 3.71%, which is higher than most industries. The average is 3.17%.

Over 92% of people looking for a house or property head to Google to search for listings, which shows just how much potential profit there is in starting a real estate PPC campaign. 

Cons

The conversion rate of real estate is valued at around 2.47%, which is lower than the average of 3.75%.

The cost-per-action for real estate is valued at around $116.61, while other industries have an average of $48.96.

There is a lot of competition, such as other forms of media, bigger and more established real estate firms, and many more. 

4. Automotive

In the US alone, the automotive industry was valued at around $2.86 trillion in 2021 and is forecasted to reach approximately $2.95 trillion by the end of 2022. 

Analysts also predict that automotive sales are looking bright, especially since we at the tail-end of the pandemic, opening up a huge wave of buyers looking to purchase vehicles or car parts after two years of mandatory lockdowns. 

Studies show that over 95% of potential automotive clients turn to Google or other forms of online media to search for answers, which makes PPC a great ad campaign for potential leads and sales.

Here are a few pros and cons of running a PPC campaign in the automotive industry.

Pros

Automotive PPCs have a click-through-rate of 4%, which is higher than the CTR average of 3.17%.

The conversation rate of automotive PPCs is valued at approximately 6.03%, higher than the average of 3.75% across all industries.

Automotive PPCs have a low cost per action, which is worth around $33.52. The average is set at $48.96.

Cons

The automotive industry has big and established brands which will be very hard to compete with. 

Unlike other niches, the automotive industry has longer sales processes since cars, parts, automotive products, and services are often expensive. 

5. Travel & Hospitality

According to the World Tourism Organization, as of September 2022, the travel & hospitality sector has reached about 60% of what it was before the pandemic, which means there is a steady recovery and growth in tourism across the globe. 

The industry is also valued at around $1.31 trillion and is on pace to surpass over $1.70 trillion by the end of 2022. 

The pent-up demand for travel and tourism is coming to fruition, especially since the pandemic is coming to a close, which makes 2022 the perfect year for running PPC campaigns.

Here are a few pros and cons of running a PPC campaign in the travel and hospitality industry. 

Pros

Travel and hospitality have one of the highest click-through-rates, sitting at around 4.68%.

The industry has one of the lowest cost per clicks, valued at $1.53. The average is set at $2.69.

The cost per action of the travel and hospitality sector, which is $44.83, is lower than the CPA average of around $48.96.

Cons

The conversion rate of the travel and hospitality sector is approximately 3.55%, lower than the average conversion rate of 3.75%.

Customers are very hard to turn into sales simply because not everyone has the luxury to travel anytime they want.

Pros and Cons of Using PPC advertising

According to PPC hero, 79% of brands have confirmed that PPC is an effective tool for marketing and advertising their business.

Around 52% of digital marketing companies are leaning towards Google PPC and are advising their clients to allocate more money in Google’s paid ads.

Running a PPC campaign has proven to be an effective driver for online businesses and companies. However, it is important to study and research the risks and benefits before investing any money.

Here are some pros and cons of starting a PPC campaign.

Pros

1. Targeted audience

Regular advertisements are typically published for the public, which include those who aren’t really fit for the product you’re selling. 

PPCs, on the other hand, allow you to manipulate who sees your ads and give you the power to filter your audiences based on what you’re trying to sell.

For example, if you’re trying to sell a baby crib, you would want to change your demographics and change the age range to around 30 to 40 years of age. Why would a 13-year-old want to buy a baby crib, right?

2. Faster, more visible results

Unlike SEO tactics that take weeks or even months to generate results, PPC ads are guaranteed to rank much faster. Typically, PPC campaigns are up and running after a few days but can start picking up momentum by as early as 2 to 4 weeks. 

Using well-known PPC services such as Google AdWords is also guaranteed to put you at the top, as long as your page applies to the keyword you’re bidding for.

3. Cost-effective

You might wonder, “How can a PPC campaign be cost-effective if they’re paid ads?”

They’re cost effective simply because you only have to pay if a user clicks on your ad. You only pay for clicks, which means you pay for potential customers and clients.

You can also set a limit on your daily ad spend, which can be very beneficial to companies who are just starting out and are on a tight budget.

Cons

1. Uncertainty

A PPC campaign almost always guarantees that your ads will be pushed to the top of Google’s SERPs, but that doesn’t always equate to sales.

Thousands of other advertisers are doing the same thing you are, some may even be better than you.

2. Costs can pile up fast

You only pay for PPC if a user clicks on your ad, but that doesn’t mean costs won’t add up. As mentioned above, clicks don’t automatically result in sales.

If you don’t manage your PPC campaign carefully and optimize your ads, you could throw away a lot of money for nothing.

Your PPC ads will also stop being visible at the top of Google’s SERPs if you don’t pay, which means you have to keep putting money to keep your PPCs alive.

3. Customers shy away from ads by a sponsored brand

According to a study by the Internet Advertising Bureau UK, 86% of internet users ignore online ads for a variety of reasons:

  • 73% of users find it interruptive
  • 55% of users find it annoying
  • 54% of users feel it slows down web browsing
  • 46% of users find online ads irrelevant
  • 31% of users feel their privacy is breached by targeted ads

27% of users were also reported to be using ad blockers to prevent ads from popping up on their screen.

Unlike websites that are ranked by SEO, sponsored ads are flagged as “sponsored” by Google, which can quickly cause users to ignore your ads or report them.

Types of Paid Ads and PPC Services

  • Google Ads: Google Ads is a paid ad service launched by Google in 2000. Today, it is one of the most widely used ad services in the world. Another term for Google Ads is Google AdWords.
  • Google Analytics: A tool launched by Google in 2005 and was developed to help advertisers understand customer actions and behavior whenever they click an ad or a website.
  • Google AdSense: AdSense is an ad service launched by Google 2003 and it allows websites to earn money by letting advertisers promote their products on your site.
  • Google PPC: A pay-per-click ad service launched by Google in 2002.
  • Amazon PPC Ads: A PPC service launched in 2012 and is dedicated to products listed on Amazon. However, Amazon’s algorithm also advertises products outside of the platform.
  • Social Media PPC: These include Facebook Ad Services, Instagram Ads, Twitter Ads, and many more. In 2021, social media advertising had a total revenue of $153 billion, second only to search ads in the digital advertising market.

Conclusion: Is PPC Advertising the Best Online Business Out There?

Running PPC ads has a variety of benefits that are hard to ignore. With the amount of traffic on the internet today, the possibilities are endless. Launching a successful PPC campaign opens up a plethora of potential leads, customers, and sales. 

However, it may not be as easy as you think. PPC campaigns are costly, require a certain of skills, but end up being ignored by a vast majority of internet users simply because they’re labeled as “sponsored”.

To add to that, businesses will stick with you for a month or two if your PPC ads don’t convert to sales. Once you run PPC ads, you’re heavily obligated to rake in a lot of cash for the company that hired you.

Local Lead Generation, however, does not require you to budget for ad spend. All you have to do is implement SEO tactics to rank your website and allow local companies to use your site for leads.

You won’t even have to worry about your website being ignored since it won’t be labeled as “sponsored”, making it appear more organic and legit.

The benefits of launching a Local Lead Generation business far outweigh the advantages of running a digital marketing company that uses PPC.

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