An effective PPC marketing campaign is every marketer’s wish. When you’re profiting consistently, your paid advertising strategies are successful. Most people would assume that an effective PPC campaign is only achievable and realistic if the advertiser has a big budget to play around with. That’s far from the truth, as Google AdWords is accessible to every individual who can come up with a reasonable budget.
The bigger the budget the better the results? Not really. In today’s competitive marketplace, companies are throwing a lot of money on ads. However, that’s not enough. In order to develop and grow a profitable PPC campaign, you’ll need to do things right.
I’m talking about goals, budget management, decisions, targeting, keywords, quality score, and more others. In today’s post, we’re giving you several tips and tricks that’ll help you develop budget-wise PPC campaigns. Maximize the outcomes by following our strategies and ensure you don’t forget to take action.
1. Establish Concise and Realistic Goals
Every marketing strategy – not just PPC strategies – require properly defined goals. By properly defined, I’m talking about concise and realistic goals. First off, decide what you want to accomplish at the end of your campaign. Do you want to grow your brand’s awareness? Or, perhaps, you want to drive opt-ins through your squeeze page? Depending on your business objectives, decide upon a strict goal for each PPC campaign.
Secondly, you should choose a metric (conversion rate, CTR, bounce rate) and make it your primary metric. Use the primary metric to keep track of your campaign’s performance. So if you’re tracking your CTR statistics, your goal should sound like this: By 2th of February, I will have an X% CTR, equaling a growth of % over X months.
That was an example – you can tweak the sentence as long as you have a deadline and a specific and measurable growth objective. Lastly, you should be objective and realistic about your goals. Nobody says you shouldn’t aim high … a little bit of risk is just fine. Yet, make sure you don’t become too unrealistic or else you’ll be constantly disappointed.
2. Carefully Estimate the Total Budget
When your goals and specific objectives are ready, you can move forward to the next phase, which is estimating your total budget for the upcoming campaign. Every campaign should have its own budget so you can keep everything neat when it comes to analyzing, measuring, and optimizing each, separately.
To estimate your initial budget, take into consideration your campaign’s objectives. Here’s an example:
I want to acquire 1000 new leads through PPC advertising. I chose this number because I am well aware of my available resources (budget, skills, keywords, targeting). I’m confident that 1000 fresh leads would be a realistic goal for my unique campaign (ensure that you’re always deciding for yours and your only).
Once I’ve made my decision, I’ll start considering the following aspects:
- Ideal Cost-Per-Lead ($50 per lead)
- Ideal Close Rate of Leads (How many leads turn into customers – my example, 30%)
So considering these aspects, I can now calculate the estimated number of PPC leads (clicks) I would need in order to reach my 1000 new leads goal. Here’s the math:
1000/0.3 = 3333 PPC leads (clicks)
Now let’s multiply that with our ideal cost-per-lead, and we’ll get 3333*$50=$166.666.
That’s the final estimation. You basically need $166.666 to acquire 1000 leads, at a cost of $50 CPC (exaggerated), and a close rate of 30%.
3. Make Good Decisions When You Allocate Your Budget
The next smart move is to improve your cost per action. Simply put, you need to make your CPA cost-efficient. By doing so, you’ll not only become a more strategic PPC advertiser, but you’re also going to save a lot of money throughout your journey. PPC advertising is that sort of activity that requires a patient and consistent learning curve. When you keep practicing with ads, you’ll slowly develop powerful marketing skills that’ll help you develop more and more profitable marketing campaigns.
But I digress…
To lower your CPA (cost-per-action), here’s what you need to do:
- Improve the CVR (conversion rate)
- Lower the CPC cost
You can do so by improving your website’s copy, brand’s message and reputation, and also your website’s UX. Concerning the CPC cost, it will take care of itself the moment you learn how to place the right keywords, use the proper targeting. In addition, you’ll also benefit from your Quality Score (read on).
4. Research Keywords Properly
Keywords are the most important elements of a low-cost, profitable PPC campaign. You can win big by bidding only on the most relevant keywords that are truly relevant to your selected audience. Just like with your budget estimations, you can calculate your keyword bidding’s effectiveness by multiplying the number of KW searches/month with the ideal (estimated) CTR (click-through-rate).
“To severely reduce the costs of your campaign, actively look after your keywords’ performance score. Analyze their performance on an hourly or even daily basis to see whether they’re bringing enough results. Re-allocate the budget from the low-performing keywords to different keywords that performed better or that you haven’t tried before” – Liza Komi, Digital Marketing Specialist at Resumes Planet.
5. Work on Your AdWords’ Quality Score
AdWords’ Quality Score is an interesting metric that Google uses to “make everything fair” for both advertisers and publishers. It affects your conversion rates and your CPC rates. Now – we know that Google values this Quality Score big time, and it is greatly influenced by its feedback. Therefore, in order to lower your CPA, you must grow your AdWords’ quality score.
Here’s how you can do that:
- Target your audience properly by choosing the right demographics for your objective.
- Maintain your ad groups structured and separate. Also, make sure they’re organized.
- Provide relevancy to your target audience. High CTR and low bounce rate = high relevancy.
- Consistently improve your ad’s copy
- A/B Test your landing pages, ad copy, ad image, and ad demographics. Also, analyze everything.
- Improving the AdWords account performance will lead to improved reputation.
Google rewards loyal advertisers for all efforts. When your Quality Score is high, your reputation with Google is also high. This will save you a lot of money, as you’ll be able to bid lower on keywords.
PPC advertising is probably the most challenging paid advertising options that marketers currently have at their disposal. Considering that your advertising budget is limited, bear in mind that you can consistently optimize your PPC strategy and ways. When you learn how to advertise better your ROI will look better. After all, isn’t that what it is all about?
Warren’s lifestyle is full of hiking adventures. When he’s not busy with his guitar or enjoying the sunny day outside, he excels at blogging skills and leaps through social media.