Breaking Into New Markets with PPC: Key Considerations for Success

Expanding into new markets is an exciting journey for any brand, but it comes with its fair share of challenges. One of the most popular strategies to enter a new market is Pay-Per-Click (PPC) advertising. It’s fast, it’s efficient, and it promises to drive immediate traffic. However, while PPC is a powerful tool, it’s not the be-all and end-all when it comes to market expansion. If you want your PPC efforts to succeed, it’s essential to understand the bigger picture. Let’s dive deep into the key considerations that can make or break your market entry strategy.

The PPC Appeal: Quick to Activate but Complex to Master

Google Ads, with its dominance in the global PPC market, is often the first choice for businesses looking to break into new markets. According to recent reports, advertising revenue from Google Ads surpassed a whopping $265 billion in 2024. The platform allows you to set up campaigns quickly, giving businesses a direct way to reach consumers almost instantly. In theory, all you need to do is set up a campaign, target a location, and let Google’s algorithms do the heavy lifting, right?

Well, not exactly.

While PPC can be activated in a matter of hours, success in a new market doesn’t come that easily. Many brands mistakenly assume that launching a paid search campaign will instantly yield results. However, without a proper strategy, this can quickly lead to disappointment.

PPC: A Piece of the Larger Puzzle

PPC is not a market entry strategy in itself. It should be seen as part of a much broader approach to market penetration. Relying solely on PPC to drive long-term success is like building a house with just one brick. Let’s explore how PPC fits into a holistic market expansion plan.

Full-Funnel Media Strategy: The Missing Piece

When launching in a new market, brands often focus on the short-term benefits of PPC. However, this narrow focus can lead to missed opportunities. It’s crucial to adopt a full-funnel media strategy that addresses every stage of the customer journey.

What do we mean by “full-funnel media planning”? Let’s break it down.

Full-funnel marketing integrates both brand-building efforts and performance-driven marketing. At the top of the funnel, you focus on raising awareness and building brand recognition. As consumers move down the funnel, you shift to driving conversions and direct sales.

For example, let’s say you’re a luxury skincare brand based in the US looking to enter the UK market. Initially, you may activate Google Ads for generic search terms like “buy luxury skincare.” These ads will drive traffic, but the brand’s visibility will be entirely reliant on PPC. Once you pause the campaigns, the visibility vanishes. This is where full-funnel marketing comes in.

Incorporating long-term brand-building tactics alongside your performance marketing efforts can significantly increase the chances of sustained growth. Research by Les Binet and Peter Field suggests a 60/40 split between long-term brand building and short-term activation for optimal results.

Initially, you may need to allocate more of your budget to building brand awareness in the new market. Over time, as the brand establishes its presence, you can shift your focus towards performance-driven campaigns.

Measurement Strategy: It’s Not Just About Sales

So, you’ve launched your PPC campaign in a new market. But how do you measure its success? Is it enough to just look at engagement and sales metrics?

The answer is no.

When entering a new market, focusing solely on PPC metrics like clicks and conversions won’t give you the full picture. PPC is not just about driving immediate sales. It’s also about contributing to brand awareness, offline actions, and future conversions. For instance, a customer may click on your ad but not purchase immediately. They might visit your store or make a purchase at a later time.

Therefore, it’s essential to broaden your measurement strategy beyond platform-specific metrics. One of the best ways to do this is through Media Mix Modelling (MMM). MMM helps capture the indirect effects of PPC and other channels, giving you a more accurate view of your marketing efforts’ true impact.

Interestingly, 53% of US marketers use MMM to evaluate their campaigns, and 30% believe it is the best model for identifying drivers of business value. This model doesn’t rely on user-level data and can provide insights into how PPC contributes to overall brand performance.

In summary, your PPC strategy must be integrated with a comprehensive measurement system that evaluates both direct and indirect effects on your brand’s market expansion.

Research Market Nuances: Tailor Your Approach

PPC may be easy to launch, but it’s important to remember that every market is different. You cannot simply replicate your domestic strategy and expect the same results in a new market.

Cultural Intelligence Matters

Cultural differences play a significant role in consumer purchasing behaviour. A study revealed that organisations with high cultural intelligence see a 30% increase in market penetration compared to competitors. The way consumers behave, think, and make decisions varies from country to country.

For instance, while UK shoppers might prioritise local culture when making purchasing decisions, Indian consumers often associate global brands with superior quality. Understanding these nuances is crucial for tailoring your PPC campaigns to resonate with local audiences.

Local Market Considerations: Understand Buying Behaviour

Longer Consideration Periods

A critical consideration when entering a new market is understanding local purchasing habits. Globally, one-third of consumers now spend more time researching purchase decisions online than ever before. This means that your PPC ads must cater to longer buying cycles and give consumers the time and information they need to make a decision.

Your PPC strategy should not only focus on getting clicks but also on guiding potential customers through their research phase. From ad copy to landing pages, everything should reflect an understanding of the local consumer’s mindset.

The Role of Digital Ecosystems

 Each market has its own unique digital ecosystem. Take China, for example, where Google and Meta are blocked. Brands entering China must adapt by relying on local platforms like Baidu and WeChat. Similarly, in countries like India, consumers are more likely to use mobile payment systems such as PayTM, whereas in Germany, services like Klarna dominate the payment landscape.

Understanding local digital preferences, such as payment methods and social media usage, is crucial for crafting a successful PPC strategy.

PPC Alone Won’t Do the Trick: The Bigger Picture

Let’s face it – while PPC can drive traffic, it cannot build a brand on its own. To succeed in a new market, you need to consider several other factors that go beyond just advertising.

Trust Signals Matter
When entering a new market, trust is a critical factor in purchasing decisions. According to recent surveys, consumers place significant value on reviews and ratings. In fact, the number of reviews and their credibility often influences whether a consumer will make a purchase or not.

Therefore, in addition to running PPC ads, you must focus on building trust signals from day one. Local reviews, positive star ratings, social media presence, and excellent customer service can all contribute to gaining the trust of potential customers.

Other Key Factors to Consider

 When expanding into a new market, there are several logistical factors that can’t be ignored:

• Shipping fees and tariffs: These play a huge role in a customer’s decision to complete a purchase.
• Localized assets: Ensure your website and assets are localised, including language, currency, and cultural preferences.
• Customer service: Offering customer support in the local language and providing relevant contact options will improve customer experience.
• Pricing and returns policies: Adapt your pricing and returns policies to meet local expectations.

While these elements may not be as easy to measure as PPC campaigns, they can make a significant difference in whether or not your market entry will be successful.

Conclusion: PPC is Just the Starting Point

Expanding into a new market is not a simple task, and PPC is just one piece of the puzzle. While it’s an effective tool for driving traffic, it cannot be relied upon as the sole strategy for market entry. For long-term success, brands need to adopt a full-funnel media approach, invest in a robust measurement strategy, understand local cultural nuances, and build trust signals from the start.

PPC can get you noticed, but it’s everything surrounding it – from local market understanding to trust-building and tailored messaging – that will determine your success in a new market. So, plan your strategy wisely, and you’ll be on your way to conquering new markets with PPC.