A revolution is underway in the world of online recruitment as more job boards move towards Pay Per Click pricing structures. This is a major change that could have a huge impact on your hiring strategy.
What is the difference between PPC/PPA/PPSA and Fixed Fee Job Advertising?
Until recently, most job boards would simply charge a fee to advertise your role on their site for a set period. Certain features would cost more than others, but there was no added charge relating to the success of your campaign. Whether you attracted 1 or 1,000 applicants, the cost was the same.
PPC/PPA/PPSA Advertising is an increasingly popular alternative that allows you to set a budget of your choice. A % of your budget is then charged by the job board every time a candidate performs a certain action: views the advert, clicks apply or completes an application.
What is PPC Job Advertising?
Pay-Per-Click (PPC) is very straightforward. You set a maximum budget and the % you’re willing to spend every time a candidate clicks on your advert: e.g. a £100 budget at 10p per click would guarantees a maximum 1000 views.
The downside of this method is that you are still charged even if candidates who clicked on your advert choose not to apply.
On top of this, pay-per-click sites often charge a minimum daily or monthly budget that will be used up whether or not you receive any applications.
So what is PPA Job Advertising?
Pay Per Application (PPA) means you are only charged a % of budget when a candidate actively completes an application. There is no charge if they only view the advert or click Apply but do not follow any further instructions.
This has the benefit that you are not wasting money on views that don’t convert to applications.
However the cost per application is set by the individual job boards.
This is based on a number of factors, including the nature of the role, the location and the number of available candidates registered on the site.
As a result, while vacancies in high demand from jobseekers will only cost a few pence per application, harder-to-fill roles in candidate short sectors will cost significantly more.
For example: an Administrator role in a highly populated area may only cost 2p per application, but a Carer position in a more remote location could cost as much as £25 per application.
Due to this, there is a risk that budgets can rapidly spiral out of control, particularly for these harder-to-fill vacancies.
What is PPSA Job Advertising?
Pay-Per-Started-Application (PPSA) works the same as Pay-Per-Application, the only difference being that candidates do not have to complete their application for you to be charged. As long as a jobseeker clicks Apply Now, you will spend a % of your overall budget
How do I calculate my budget?
Because the Cost Per Application (CPA) is based on market factors directly related to your role, there is no hard and fast rule about how much to spend per campaign.
However it’s best to start with a smaller amount rather than risk wasting money on clicks or poor quality application starts.
More budget does not guarantee more candidates.
You could find yourself spending £3,000 to net the same number of candidates you would have done for just £300.
Which job boards and online recruitment sites use PPC/PPA/PPSA Advertising?
LinkedIn and Facebook both charge advertisers using Pay-Per-Click method with a minimum daily budget.
Sponsored Indeed adverts are now all Pay Per Started Application.
Reed is due to launch a Pay-Per-Application option from March 2023.
Will PPC become standard for job advertising?
It’s likely that PPC, PPA and PPSA will eventually become the norm across the job boards.
However, at Flat Fee Recruiter we will continue to provide job board advertising across multiple sites at a fixed price. The team can also manage your PPC/PPA/PPAS budgets to ensure costs never get out of control.
You can find out more about how we can help provide the most efficient and cost-effective PPC recruitment solution here.
Or you can call a member of the sales team on 0113 322 7243.