Pay-per-click marketing is difficult to master. It can either boost your company’s profitability or drain its resources (if the campaigns are not optimized correctly). There are also so many variables to consider, like how much to spend on search versus display, and whether your PPC is focused on e-commerce or lead generation. To avoid losing money on PPC, it is worthwhile to take a careful look at how you are spending your PPC budget and what you can do to improve it.
Start with the Basics
The first question to answer in figuring out the best PPC budget for your company is what do you need to generate more quality leads? To determine this, consider the essential elements of leads:
- The frequency of visitors: How often are people coming to the site?
- The cycle of buying: What is the typical buying cycle of each visitor?
- Location of visitors: Where are the visitors located geographically?
- Quality of leads: How well do the leads translate into measurable results?
- CPL (target cost per lead): What is the cost for each lead?
Starting with these questions can help you paint an accurate picture of what your site’s activity currently looks like. Before you can envision a goal and create a path to get there, you need to know where your beginning point is.
Calculate Target Lead Goals
Once you gather this necessary information, you can distinguish your leads in terms of profitability and define your target lead. Some factors to consider in deciding what your target lead is includes the following:
- What is the ideal number of leads for our company’s goals?
- What makes a lead valuable?
- What is our CCR (current conversion rate)?
- How much money can we spend on each lead?
These are more difficult questions to answer but taking the time to do so will pay off as you enter the answers into formulas designed to make the most of your PPC budget. For example, you need to calculate how many new clients you need each month, what your close rate percentage is, and how much your cost per lead is. Using these numbers, you can figure out what your PPC lead goal should be and how much you need to spend to reach it. Let’s break that down into five steps with an example:
- Step one: calculate your goal cost-per-lead–$50 per lead
- Step two: decide on your new client goal—500 new clients per month
- Step three: calculate the close rate of leads—30%
- Step four: figure out your PPC leads (divide step two from step three)—1667
- Step five: establish the amount your company needs to spend per month (multiply step one and step four)–$83,350
Fine-tuning your company’s PPC budget is an excellent way to ensure that your company is in a fiscally responsible position, as well as to analyze its marketing strengths and weaknesses. Rather than just looking at how many leads you’re generating, for example, you can break down the quality of those leads and hopefully discover ways to improve not only the quantity but also the quality of the leads. Some of the considerations that can help you do that include the following:
- Do leads from certain areas consistently result in higher conversion rates?
- Do certain times of the day produce more leads than another?
- How much time do visitors typically spend on our site?
- How user-friendly is our website concerning the number of clicks that a user has to make?
- Which search engine makes the most sense for us to use?
- Would negative keywords winnow out the leads that don’t lead to conversion?
- Should we adjust our bids according to traffic and pay more for leads during more profitable times or days?
- How well does our site perform on a range of devices such as tablets, and laptops?
After analyzing these factors, you’re in a much stronger position to create an optimal PPC budget that gives you the most marketing power for every dollar you spend. The investment you make in smarter marketing practices will pay off as your site becomes more productive in attracting and retaining users. Additionally, your site will generate more quality leads, and your conversion rates will increase as you analyze and then adjust the way you spend money on PPC. You will also have peace of mind knowing that your PPC budget is being spent wisely.
After 4 months of Beta testing, Google has released Review Extensions to the full population of Adwords advertisers.
Review Extensions will display 3rd party reviews underneath an advertiser’s ad, hopefully lending both security and confidence to the product or service. This should help advertisers a great deal by confirming to users that the product or service in question is reputable and has already been vetted by others. Google has one advertiser who was included in Beta testing who claims they’ve seen a clear 10% increase in click through rates since starting use of review extensions.
One feature that will prove very interesting with this extension is the fact that the review publisher will have a link within the ad itself. If the user clicks the link to the review, the advertiser will not be charged for a click. While this extension will still most likely be a net positive for Adwords customers, it is yet another signal that review sites are gaining more authority in the eyes of Google.
All told, this newest Adwords bell and whistle should have an immediate and real impact on search results, both paid and organic. Keep an eye out for these in the very near future, and take note of the creative ways that advertisers put these to use.
October 21, 2013 – Posted by Andrew Cox to PPC.
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According to research firm eMarketer, Google is likely to exceed Facebook in selling online display ads in the United States. Google is expected to have a 15.4% share of the U.S. market. eMarketer said Google is projected to make $2.31 billion in revenue from online display ads. These are more profitable than the text-based ads that appear next to search results and account for the bulk of Google’s revenue.
This lead in online display ad marks a historic day for Google. This is the first time ever that it will be the leader in three different modes of online advertising: display ads, web-search ads, and mobile ads.
eMarketer calculates that Facebook will hold 14.4% of the market this year with $2.16 billion in U.S. revenue. Back in February, eMarketer predicted that Facebook would be on top with 16.8% of the market and Google with 16.5%.
(Graph from The Wall Street Journal)
eMarketer estimates that the display ad market to grow 21.5% to almost $15 billion in the U.S. this year, compared to last year’s $12.3 billion. Collectively, Google and Facebook will have nearly 30% of this year’s display ad revenue. In the year 2014, eMarketer predicts the two companies to have 37% of the market.
Google continues to make it easy for advertisers to use one source for all of their online marketing needs, via traditional desktop Adwords, Mobile adwords, display ads and re-marketing – both within their search network and on thousands of partner websites within Google’s content /display network.
Contact us at The Search Engine Guys if you would like to explore options for PPC advertising on Google’s network.
Often, people think that the way to get to the front page on Google, is to simply pay for it. While there is some truth to this, it often works best as a short term option rather than the main focus of your search engine optimization campaign.
Pay per click allows you to pay Google a set price for every time a person clicks the link to your website. In one of these campaigns, you are guaranteed front page placement for as long as you are willing to pay for those clicks. Unfortunately, this can get incredibly costly very quickly. This is why it is a good idea to optimise your site for natural placement while you run a pay per click campaign.
If you would like to know more about the benefits of pay per click, you can contact The Search Engine Guys at (512) 806-7955.
When people think of coming up early on Google, a lot of them think that it’s a service you pay for. While that service does exist, it is not necessarily the best way to come up for your search results. Natural listings tend to receive more clicks because many internet users are becoming savvy to the use of pay per click advertising.
Coming up naturally is a little more difficult than writing a check to Google, but it is also worth the effort. While no one knows exactly what Google’s ranking formula is for websites, there are some SEO companies that get close enough to produce good results. Part of that formula is having constantly updated content that is relevant to your search terms. Without that, your website will not show up where you want it.
If you want to know more about search engine optimization and how to have your website come up on the first page of Google, contact The Search Engine Guys today at (512) 806-7955.
Search engine optimization (SEO) is one of the many different types of online marketing strategies that you can use to promote your business or services on the internet. Another dynamic and often benefical option for an online marketing campaign is the use of Pay-Per-Click (PPC). While these various types of online marketing can be successful on their own, they are ultimately their most successful when used together to create an all-encompassing marketing strategy. If you’re not familiar with PPC, you may be wondering what it’s all about.
PPC campaigns can be executed using Google Adwords. Whether you are selling something as simple as homemade candles or as complex as legal services, Google Adwords has multiple settings to ensure that your advertising needs are met. Adwords is an ever-changing beast, however, constantly updating and improving their services to make the user experience more pleasant. You may want to start with taking a look at their Adwords “lessons,” but know that these study guides are only a starting point. The real way to learn how to successfully use Adwords is getting into the program and poking around. While there are strategies to building a successful PPC campaign, some success is found by good, old-fashioned trial and error.
You’ll need to constantly monitor your keywords to see which ads are working and which don’t seem to be getting any attention. Over the life of your campaign, you’ll undoubtedly start to catch on as far as what works and what doesn’t.
Perhaps the most important of a PPC campaign is properly targeting your campaign using location preferences and keywords. The more specific the better – otherwise, you may be wasting your advertising dollars advertising to someone who would never even consider buying your product. It can be tedious and frustrating to try to understand the logic behind why certain campaigns succeed while others struggle. Google is secretive about certain aspects of the Adwords program (much like they are with the algorithm that they use to determine page ranking for SEO).
At The Search Engine Guys, we’re dedicated to mastering the art of PPC campaigns, no matter how frustating it can be at times. It’s just another way that we help our clients to be found by potential clients in the clutter of today’s market.
Learn about us and the services we provide by contacting The Search Engine Guys at (512) 806-7955.