Background of the study
Pay-per-click (PPC) advertising has emerged as a fundamental component of digital marketing, especially for retail brands aiming to drive online conversions. In Lagos, Nigeria, retail brands are increasingly employing PPC campaigns to attract targeted traffic and convert visitors into customers. This comparative study explores how PPC advertising influences online conversion rates by analyzing factors such as ad relevance, bidding strategies, and landing page optimization (Okafor, 2023). Retail brands leverage PPC to gain immediate visibility and measurable outcomes, with campaigns structured around performance metrics like click-through rates and cost-per-conversion (Adeniyi, 2024). Despite the advantages, challenges such as high competition for keywords and fluctuating bidding environments often affect campaign performance. This study compares different PPC strategies to determine their effectiveness in driving online conversions for a retail brand in Lagos. By examining quantitative data and user behavior analytics, the research aims to identify which strategies yield the highest conversion rates and provide actionable insights for optimizing PPC campaigns. The findings are expected to contribute to more efficient ad spending and improved digital marketing outcomes, enabling retail brands to enhance their competitive edge in a dynamic market (Ibrahim, 2025).
Statement of the problem
Retail brands in Lagos face difficulties in optimizing PPC advertising to drive consistent online conversions. Although PPC campaigns offer measurable outcomes, issues such as intense keyword competition, budget constraints, and fluctuating consumer behavior often result in suboptimal conversion rates (Chinwe, 2023). Inconsistencies in campaign performance and the challenge of accurately attributing conversions to specific ad elements hinder the ability to maximize ROI. Without a comprehensive understanding of which PPC strategies are most effective, retailers risk inefficient allocation of advertising budgets and missed opportunities for customer acquisition. This study aims to address these challenges by comparing various PPC approaches and identifying best practices that can enhance online conversion rates (Ogunleye, 2024).
Objectives of the Study:
To compare the impact of different PPC strategies on online conversion rates.
To evaluate the effectiveness of ad relevance and bidding strategies.
To recommend best practices for optimizing PPC campaigns.
Research Questions:
How does PPC advertising influence online conversion rates for retail brands?
What role do ad relevance and bidding strategies play in driving conversions?
Which PPC approaches yield the highest return on investment?
Significance of the study:
This study is significant as it provides a comparative analysis of PPC advertising strategies and their impact on online conversions for retail brands in Lagos. The findings offer practical recommendations for optimizing ad campaigns, enhancing conversion rates, and improving overall digital marketing effectiveness.
Scope and Limitations of the Study:
This study is limited to examining PPC advertising and its impact on online conversions for a retail brand in Lagos. It does not extend to other advertising methods or industries, and results are specific to the local digital market.
Definitions of Terms:
Pay-per-click (PPC) Advertising: A digital advertising model where advertisers pay for each click on their ad.
Online Conversions: The completion of a desired action by a website visitor, such as making a purchase.
Retail Brand: A company that sells products directly to consumers through online or offline channels.
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