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Article by: Ivana Giardi
As costs of PPC campaigns are increasing, internet
marketers are more than even under the pressure to deliver positive
results. The performance of PPC campaigns is dependent on following
factors:
- The impression rate
- Your ad position
- Click thru rate (CTR)
- Conversion rate
Finding the right balance between impression rate, ad position
and clicks is the starting point to successful PPC advertising.
Before exploring tips to help your campaign perform better, let's
quickly sum-up the concept how Google displays your ads in its
sponsored results:
* Daily budget controls frequency of your ad display
The frequency is expressed by number of impressions. If your
daily budget is not high enough, your ad may not show all the
time (meaning you don't have enough impressions per day).
* Ad position depends on the Rank Number
The higher the rank number, the higher is your ad's position
on the page. The rank number is calculated based on the following
formula:
Rank Number = CPC (Cost Per click) x CTR (click through rate)
x (Ad quality)
Now we're ready to explore what practices are more likely to
help us improve PPC campaigns performance:
1/ Improve Ad Delivery
If your ad does not show up every time when searches are performed
under your keyword, it may be a sign that your daily budget is
not high enough. As you now know, how frequent of your ad display
is controled by the daily budget. If you would like your ad to
be shown more frequently, please consider to increase your daily
budget in order to receive a maximum exposure for your ad.
Normally, you have 50% margin for your daily budget. For example,
if your desired daily budget is $10.00 per day, you can set your
actual daily budget on Google to $15.00 per day, because your
actual spending is based on your click thru rate, by setting the
daily budget higher will allow your ad to get more exposure, but
your actual spending may still be in your desired daily budget
range.
However, be sure to monitor your daily advertising costs and
if they are rising too high, decrease the budget on the safe level.
2/ Improve Ad Delivery per Keyword
Each campaign can have one or more adroups. An AdGroup is a group
of keywords and ads that will display when those keywords are
searched for on Google. You may have experienced a situation when
only few keywords out of the whole AdGroup trigger your ad. The
explanation lies again behind the daily budget that controls a
number of impressions for your campaign. These impressions are
distributed between individual AdGroups and further between individual
keywords. So it may happen that some keywords in a particular
Adgroup have more impressions than the others, meaning some keywords
trigger your ad more frequently than others.
If you want to improve the ad delivery for your targeted keywords,
you can consider splitting your keywords and creating a new campaign
for keywords with low impressions. This should improve the frequency
with which they will trigger your ad.
3/ Optimize your Adgroups
As mentioned above, each campaign has one or more adroups that
all share campaign's impressions. Often, the impressions are not
divided evenly between adgroups. So it may happen that some adgroups
have more impressions and show their ad(s) more frequently than
others. It is a very similar scenario as with keywords we just
described above.
To improve results of your low-performing adgroups, you can consider
to create a new campaign for them in order to increase the frequency
with witch they show your ad on Google.
4/ Analyse your Clicks
Make sure the clicks are made for specific, targeted keywords.
If you're getting lots of clicks on non-targeted keywords, consider
reducing Max CPC and/or your ad position in order to improve your
ROI. Similarly, you can raise bids for targeted keywords that
are performing well.
5/ Optimize your Ads
Make sure you bid on targeted keywords, create compelling ads
and link them to relevant content on your website. The keywords
you chose will segment the market and target your desired audience.
If you won't chose wisely, you'll finish targeting the wrong market
and wasting your advertising budget. The ad you create needs to
attract attention of your prospects. It needs to communicate your
unique selling feature - in other words, what makes your product/service
different from others and why a visitor should visit your website.
Be specific about your offer and include call to action. Lastly,
guide visitors to the content on your website where they can access
more information about the offer advertised. The landing page
should also clearly state what is the next natural step to make
- buy your product, download the white paper, sign up for a free
trial, etc.
PPC management requires lots of work and testing but if you stick
to the basics you can make money instead of losing them. Remember,
the only measure that matters on the Internet is the profit you
make.
Ivana Giardi is Marketing Director at Apex Pacific, the leading
developer of Internet Marketing and Web Promotion solutions. Apex
Pacific helps organizations of all sizes increase their online
marketing presence leading to stronger business results. If you
would like to learn how to improve your website performance, visit
Apex Pacific at http://www.apexpacific.com.
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