Advantages of Applying Game Theory in Pay Per Click Marketing

Due to the lucrativeness of the online market, most vendors are interested in maximizing its potential for the profitability of their business. This has created very stiff competition for the people selling the same products. The fierce competition can lead to lack of profitability. The guidelines below show the advantages of applying game theory in PPC marketing.

Understanding the Magic of Game Theory in PPC Marketing – Know The Do’s and Dont’s!

Game Theory for Social Media Advertising
WHY GAME THEORY? The fierce competition in the online market can lead to lack of profitability. We think you should apply game theory in your PPC marketing to get the desired results by following our guidelines.

Skills and knowledge

The agreement between your fellow competitors in game theory can be the best platform to acquire new skills and expertise. The main agenda for coming up with this agreement is to enhance the profitability of your businesses. These relations can culminate to sharing of effective strategies that will boost the sales and the profitability of your trade. This is a way of getting new skills.

Market segmentation

While competing, businesses normally fight for a territory. This is called market share in marketing terms. Vendors are always seeking to find effective ways of dominating the market. This causes other businesses to either close down their operations or encounter minimal sales. Game theory provides an opportunity to get your own market share without fighting for it.

Market penetration

Many new businesses find it hard to venture into the market successfully because of already established firms. Introduction of a new business needs the support of an already established one to start easily. The dominance of established trades is behind the failures of new businesses. Game theory makes market penetration to be extremely easy due to support obtained.

Reduced expenses

The Orlando Florida search marketing company is aware of the importance of digital marketing to the retailers in online business. Due to this information, the charges are normally high. Investing in effective marketing will cost you lots of cash. With game theory, the marketing expenses will reduce. This is because you will be focusing on specific websites within the online market.

Minimized competition

The worst element that culminates in closure of online business is increased competition. Every time retailers are on the increase selling the same products. Game theory on the other hand gives you an opportunity to reduce competition for your business. You will be collaborating with a competitor and that reduces the threat of losing your business due to strong competition.

Greater marketing efficiency

Marketing can only be efficient when your resources are focused on a particular segment. The essence of marketing is to let many people know of the existence of your business and products. That forces countless vendors to overspend on marketing since they want to reach as many people as possible. Such strategies are ineffective. Concentrating on a manageable market segment is very effective.

Preservation of resources

After dividing the market between you and your competitor, you will have an easy time reaching out to specific customers within a particular segment as agreed. Since you will not be covering a vast majority of the websites within the online market, you will preserve your resources. This includes your time and your energy. This is achievable due to minimized rate of competition.


When considering targeting numerous customers within the internet, it is possible to lose focus. Millions of people visit the internet daily and working on promoting your goods to them will be extremely tiring. It may reach a point where the objective might seem unreachable. To maintain focus, you need a market share that both you and your workers can comfortably handle.

Competitive edge

With decreased level of competition, you will have time to focus on the advancement of your business and the development of your products. Rest from competition will open up opportunities to build a competitive edge against other competitors within your segment. By improving your merchandize in quality, you will become a force to reckon with within the online market.

Stability of business

Numerous businesses have perished because of competition. Customers will always prefer acquiring their products from the stronger competitor. This leaves the weaker ones perishing due to lack of enough revenue to support their operations. Game theory increases the chances for the stability of your business. This is due to decreased competition by the agreement with a fellow retailer.


The commitment between the competitors is the binding factor that brings trust in their partnership. Other retailers commit by word of mouth. This is dangerous since either party can revoke the agreement easily. To enjoy the security of the agreement, you should get a lawyer. Through legal representation, the agreement will be protected and you will enjoy its benefits.

Exploit other opportunities

Confusion caused by extreme competition does not support focus to look for other opportunities. Most of the time the retailer will be thinking of finding better ways to ease or beat the competition he/she is facing. Losing to a strong competitor taking a legal agreement will empower you to seek other fresh opportunities that have not been exploited in the market.

Self-appraisal of the business

These agreements do not last for long. This is because they are made for the mutual benefits of the parties involved. Hence, it is possible for one of the parties to decide to ditch the agreement. Before this happens, ensure your business has the capacity of handling competition on its own. Take this chance to examine your business and build it to become capable of competing on its own.

Minimal workforce

Game theory for PPC marketing gives you an opportunity to cut costs by using few workers to achieve your objectives in promoting your merchandize. With reduced competition, only a few employees can manage to deal with the rest of the competitors within your range. This will reduce the expenses of your trade and escalate your profit margins. You can invest in highly skillful workers.


Regardless of the benefits of game theory, this agreement can only be effectual when you collaborate with a competitor that seems to be a threat to you. Rather, get a competitor with the same capacity to pull down a notorious but strong competitor. Hence, take time to examine the strength of your prospective partner first before choosing them.






2 responses to “Advantages of Applying Game Theory in Pay Per Click Marketing”

  1. Hitesh Unavane Avatar
    Hitesh Unavane

    Great read James.
    I have read game theory in my CS class, didn’t knew we can use it this way also.Thank you keep up with the good content

  2. jonathon Avatar

    A fun read and from a historical perspective I’d not thought of before.

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