A critical analysis of pay-per-click strategies on customer acquisition: A case study of an online retailer in Abuja, Nigeria
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Background of the study
Pay-per-click (PPC) strategies have become an integral component of digital marketing for online retailers seeking to acquire new customers efficiently. In Abuja, Nigeria, online retailers are increasingly investing in PPC advertising to target potential customers and drive traffic to their websites. This performance-based advertising model allows retailers to pay only when a user clicks on an ad, making it an attractive option for businesses operating under budget constraints (Okafor, 2023). PPC strategies are designed to be highly targeted, using data analytics and keyword optimization to reach audiences most likely to convert. Research indicates that effective PPC campaigns can significantly boost customer acquisition rates by delivering tailored messages and timely offers that resonate with prospective buyers (Adeniyi, 2024). However, the competitive nature of online advertising and the constant evolution of digital consumer behavior pose challenges to the consistent success of PPC strategies. This study critically analyzes the effectiveness of PPC strategies on customer acquisition for an online retailer in Abuja, exploring factors such as ad relevance, bidding strategies, and campaign optimization techniques. The insights derived aim to provide a framework for enhancing PPC performance in highly competitive digital markets (Balogun, 2025).
Statement of the problem
Online retailers in Abuja face difficulties in optimizing PPC strategies for effective customer acquisition. Despite the targeted nature of PPC advertising, challenges such as high competition for keywords, budget limitations, and fluctuating consumer behaviors lead to inconsistent acquisition rates (Chinwe, 2023). Moreover, the complexity of measuring campaign success and the potential for ad fatigue complicate the ability of retailers to sustain long-term growth through PPC. The absence of clear benchmarks and best practices for PPC optimization further hinders strategic decision-making, leaving retailers uncertain about how to maximize their advertising investments. This study aims to address these issues by critically analyzing PPC strategies and providing actionable insights into improving customer acquisition through effective campaign management (Ibrahim, 2024).
Objectives of the Study:
To analyze the impact of PPC strategies on customer acquisition.
To identify key challenges in optimizing PPC campaigns for online retailers.
To propose actionable recommendations for enhancing PPC performance in customer acquisition.
Research Questions:
How do PPC strategies influence customer acquisition for online retailers in Abuja?
What challenges hinder the effectiveness of PPC campaigns in acquiring new customers?
What strategies can be implemented to optimize PPC performance for customer acquisition?
Significance of the study:
This study is significant as it offers a critical analysis of PPC strategies and their impact on customer acquisition. Its findings will provide online retailers in Abuja with practical recommendations to refine their PPC campaigns, improve customer acquisition rates, and optimize digital advertising investments in a competitive market.
Scope and Limitations of the Study:
This study is limited to examining pay-per-click strategies and their impact on customer acquisition for an online retailer in Abuja. It does not extend to other digital marketing strategies or industries, and the findings are specific to the local online retail market.
Definitions of Terms:
Pay-per-click (PPC) Strategies: Digital advertising techniques where payment is based on the number of clicks received.
Customer Acquisition: The process of attracting and converting new customers.
Online Retailer: A business that sells goods or services primarily through online platforms.
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