As an advertiser, getting more ad impressions and clicks is a constant battle. Sure, you can pay your way to the top of sponsored search results, but this can get expensive fast and cause your marketing ROI to suffer.
Another way to improve your ad performance is to work on ad relevance (aka keyword relevance). Search engines like Google and Bing will reward you with higher ad placements if your ads are more relevant to user searches.
In this article, we’ll go over what ad relevance is, why it’s important, and six ways you can start improving ad relevance today.
Let’s get started!
Google defines ad relevance as” how closely your ad matches the intent behind a user’s search.” Bing defines it the same way: “how relevant your ad and landing page are to the customer’s search query or other input.”
Basically, ad relevance is how closely your ad (including keywords and landing pages) matches what users are looking for.
Ad relevance is also one of the three main components of your ad’s Quality Score (along with expected clickthrough rate and landing page experience), which Google uses to give your ads a status of “above average,” “average,” or “below average.”
Source: https://help.ads.microsoft.com/apex/index/3/en-us/50813
To measure ad relevance, Google compares your ads to other ads targeting the same keyword over the last 90 days.
Ad relevance is important for a couple of reasons.
For one, it helps you cater your ads to your target audience. The more relevant your ads are, the more likely users are to click on them and turn into leads that ultimately buy your product or service.
But improving ad relevance also helps you indirectly by lowering your ads’ cost per click (CPC). Let me explain.
When you score higher on search engines’ ad relevance (and overall ad quality) metrics, they will favor your ads in their search engine results pages (SERPs). How? By displaying your ads over (or higher than) other ads.
This means your ads will gain more impressions and clicks, and more clicks for the same budget means a lower cost-per-click (CPC) rate. Basically, it’s getting more bang for your buck.
If that sounds like something you want, here’s how to start making your ads more relevant today:
The first step to making your ads more relevant is to match them with search terms.
Think like a customer. If you were searching for a new pair of men’s running shoes, you might type “buy new men’s running shoes” into Google.
As a consumer, you’d be more likely to click on an ad that said, “shop for new men’s running shoes” than one that said, “buy men’s apparel.”
Why? Because the first ad is much more specific to your actual need, whereas the second is broader and more generic and may not be what you want.
Focusing your ads on long-tail keywords (keywords that are longer but more specific) will not only help you target specific types of buyers but will help you gain more qualified leads.
For example, even if you manage to place an ad for the keyword “buy men’s apparel,” you may attract people looking for things you don’t sell (e.g., men’s ties), and that doesn’t help you or them.
So, target specific keywords and place them upfront in your ads. Search engines bold keywords in search queries, so your ad will stand out more if the relevant keyword is displayed in the ad headline, body, URL, and display path fields.
When it comes to search ads, users are telling you what they’re looking for. So, make sure to deliver by targeting relevant keywords.
Poor ad relevance usually comes from copying ads from one ad group to another without editing or tailoring them. To ensure your ads stay relevant from one product or service to the next, create multiple tightly themed ad groups. You can create separate ad groups for different products, buyer personas (segregated by gender, age, location, and other demographics), and more.
As a rule of thumb, you should limit ad groups to about 5 to 20 related keywords. Then create different ads based on these different keyword variations while also ensuring strong landing page relevance.
The more specific you can make each ad, the more relevant they will be to users, improving both your ad rank and overall landing page experience. Additionally, optimizing your landing page content will help maintain a seamless connection between the ad and the user’s expectations.
Source: https://www.adzooma.com/blog/how-to-use-ad-groups-to-boost-success/
Once you’ve targeted different search terms and grouped your ads, it’s important to make sure each ad is as simple as can be.
Write ad copy that can be understood by a third grader. Why? You have a very short amount of time to grab readers’ attention with your ads. So, the simpler an ad is to digest, the more likely someone is to stop and read it.
It may be tempting to try to make your ad clever because you want it to stand out, but the truth is that this rarely works. People on the internet want instant gratification, so if they have to put in the slightest amount of mental work to understand an ad, they’ll give up and move on.
Instead, make your ads clear and direct. Tell users exactly what it is you’re selling without trying to impress them with your words.
Every ad needs a clear call to action (CTA). Without it, your ad isn’t really an ad because it’s not telling people what you want them to do.
CTAs will look different based on what it is you’re advertising. If you want users to buy some men’s running shoes on your website, your CTA might say “buy men’s running shoes now.” If you want users to download your free men’s running ebook, it might read “download free men’s running ebook.”
You get the point. Tell users exactly what you want them to do and exactly what they’ll get by clicking.
Crafting compelling ad copy is half the battle. From there, you also need to make sure the landing page quality is high and that the landing page your ad leads to is relevant.
The job of the landing page is to close the deal. It’s where users actually become leads or customers by signing up for a newsletter or making an online order. As a result, the landing page needs to match whatever the ad promotes. If the ad promotes men’s running shoes, the landing page better be an eCommerce storefront where users can place an order.
If not, you’ll disappoint and lose potential customers because you’re not giving them what they signed up for by clicking the ad, which could result in a low quality score and hurt your ad rank.
Landing pages should contain all the same relevant keywords as the ad and exclude negative keywords and missing ones. It’s also important to design landing pages to be user-friendly.
Good UX design could be the difference between gaining a lead or a customer, ultimately leading to better ad placements and increased conversions.
Peter Drucker once said, “If you can’t measure it, you can’t improve it.” And the same goes for improving ad relevance.
To measure how well your ads are performing, conduct A/B tests. This means creating two slightly different versions of an ad and then running both to see which performs better on common ad metrics, such as click-through rate (CTR), ad position, number of impressions, and cost per click (CPC).
You can A/B test different ad copy, keywords, ad channels, and more.
Source: https://www.optimizely.com/optimization-glossary/ab-testing/
If you don’t have a dedicated A/B testing software solution, you can always set up custom experiments on Google’s ad platform.
You can also identify poor-performing ads with the help of Google Ads Scripts.
Whatever you do, constantly reevaluate your ads so you can fine-tune their relevance over time.
Not sure you have the time or resources to run your own online ad campaigns? No worries. PPC.co is here to help.
We can help you run top-performing ad campaigns on Google, Facebook, LinkedIn and more. You can be involved every step of the way or sit back and relax and let us handle all the hard work. It’s up to you.
Get in touch today for a free proposal. We look forward to chatting!
%201.svg){kind=logo}
When this apartment complex client partnered with PPC.co, their goal was clear: generate more qualified leads through Google Ads. In just 60 days—from January to March 2025—we transformed their paid acquisition performance. Total conversions more than tripled, jumping from 10 to 32, while the overall conversion rate soared by over 300%. At the same time, we drove down the cost per conversion by 44%, delivering significantly more leads at a much lower cost.
By strategically combining Performance Max and high-intent Search campaigns, we not only increased lead volume but improved overall efficiency and ROI. This rapid and measurable improvement underscores the value of data-driven optimization and expert campaign management.
This case study is a testament to what can happen when a well-structured campaign meets expert strategy and continuous optimization. Whether you're launching a new property or looking to boost occupancy in a competitive market, PPC.co delivers real results—fast.
Ready to grow your leads and lower your cost per conversion?
Contact us today to schedule a free audit and discover how we can help you achieve similar results.
Click on the following link if you would like to see more PPC case studies!
If you’re running an e-commerce or retail business, you already know that visibility is everything. The best product in the world won’t sell if no one sees it. That’s where paid ads for ecommerce comes in.
Done right, they drive traffic, conversions, and repeat customers.
Done wrong, they drain your budget and leave you wondering what went wrong.
Whether you’re spending $500 a month or $50,000, your goal is the same: profitability. Not just clicks, and certainly not just impressions. You want to turn ad dollars into real, predictable revenue.
So how do top-performing e-commerce and retail brands make their paid ads work?
What are they doing that you’re not?
This guide breaks it down step-by-step, so you can start running profitable ads with confidence.
Before you launch a single campaign, you need clarity on your audience and goals. Are you trying to boost first-time sales? Increase average order value? Each objective requires a different strategy and metrics for success.
Don’t fall into the trap of launching ads just to “see what happens.” Paid media works best when it’s part of a bigger strategy. So before you log in to Google Ads or Meta Ads Manager, get specific about what success looks like.
If you want to run profitable paid ads, knowing your numbers is the foundation of your entire strategy. Without a clear understanding of your margins, break-even points, and how much you can afford to spend to acquire a customer, you’re essentially gambling with your ad budget.
And in e-commerce, that can get expensive fast.
Let’s start with the most critical numbers you need to know:
Your break-even ROAS tells you the minimum return you need on your ad spend to not lose money. It’s calculated by dividing 1 by your gross profit margin.
So if your margin is 50 percent, your break-even ROAS is 2.0. That means for every $1 you spend on ads, you need to make $2 in sales just to break even.
For example, let’s say you’re running Facebook Ads and spending $1,000 on a campaign. If your break-even ROAS is 2.0, you need to generate at least $2,000 in revenue to avoid losing money. Anything above that is profit. Anything below that eats into your cash.
Once you know your numbers, you can reverse-engineer your ad strategy instead of throwing money into the void and hoping for results. For instance, if your AOV is low (say $25), you might struggle to profit from ads unless you have a very low COGS or high conversion rates. In that case, you might want to:
On the other hand, if your AOV is $150 and your margins are strong, you have more room to compete in ad auctions, bid more aggressively, and test multiple audiences and creatives without instantly wiping out your profit.
A lot of beginner advertisers focus entirely on immediate return from ads. That’s understandable – but short-sighted. If you’re breaking even or slightly losing on the first sale, that might still be a smart move if you’re building long-term customer relationships.
That’s where Customer Lifetime Value (LTV) comes in. If you know that your average customer places three orders a year, each worth $60, then their LTV is $180. If you spend $40 to acquire that customer with your first ad, but earn $140 more over the next 12 months, that ad was extremely profitable in the long run.
Top e-commerce brands build their paid strategies around LTV-to-CAC ratio – how much they earn over time compared to what they paid to acquire the customer.
A healthy ratio is usually 3:1 or higher. So if you’re spending $50 to acquire a customer, you want to earn at least $150 from that customer over time.
Once you understand your numbers, you can plan your ad spend with precision. You’ll know exactly:
Let’s say you want to make $5,000 in profit this month, and your product has a 50 percent gross margin. That means you need $10,000 in sales. If your target ROAS is 2.5, you can spend up to $4,000 in ad spend to hit that goal. With those numbers in hand, you now have a roadmap for campaign budgeting, not just a shot in the dark.
Every ad platform has strengths. But if you try to use them all at once, you’ll burn through your budget without learning much. Instead, pick one or two that align best with your business model and customer behavior.
If you’re selling visually appealing products like apparel, skincare, or home goods, platforms like Instagram and TikTok can deliver strong returns – especially with the right creative. If you’re focused on high-intent buyers, Google Search and Shopping Ads are goldmines. And if you’re targeting professionals or B2B retail buyers, LinkedIn may offer surprising results.
Test channels strategically. Start with the one that matches where your customers spend their time and scale from there. The best platform for you is the one where your ideal customers are already shopping, scrolling, or searching.
One of the biggest mistakes retailers make is casting too wide a net. You don’t want everyone to see your ad – you want the right people to see it.
On Google, this means targeting high-intent keywords that signal buying behavior. Focus on terms like “buy,” “best,” “free shipping,” or product-specific searches. On Facebook, Instagram, or TikTok, you’ll want to dial in your custom audiences using demographic data, lookalikes, interests, and behavior.
Don’t forget retargeting. Most people won’t buy the first time they visit your site, but retargeting brings them back when they’re ready. Set up ads that follow people who viewed a product, added to cart, or engaged with your brand but didn’t check out.
The more relevant your targeting, the more efficient your spend and the higher your return.
Creative is the make-or-break factor in most e-commerce ad campaigns. You can have perfect targeting and the right product, but if your ad doesn’t grab attention in the first two seconds, it won’t convert.
Your creative needs to do three things quickly:
Use high-quality product photos or videos. Show your product in action. Highlight a clear benefit or solve a specific problem. Incorporate customer reviews or user-generated content to build trust.
For paid social, test multiple creatives at once – video vs. image, UGC vs. branded, short-form vs. long-form – and let performance data guide your iterations. On search platforms like Google, focus on copy that’s compelling and packed with relevant keywords. Test different headlines and descriptions to see what gets the best click-through rate.
Sending paid traffic to your homepage is a rookie mistake. You want every click to land on a page that’s designed to convert. That means fast load times, mobile optimization, and a clear call-to-action.
If you’re promoting a specific product, send users to that product page and not your full catalog. If you’re offering a bundle or a seasonal deal, create a dedicated landing page with copy, visuals, and layout tailored to that offer.
Remove distractions. Reduce friction. Make it stupid-easy for people to buy. The less effort it takes, the more sales you’ll see. And don’t forget to A/B test. Sometimes a simple tweak to your headline or CTA can double your conversion rate overnight.
Once your ads are live, your job isn’t done. In fact, this is where it really begins. You need to monitor performance regularly, looking at more than just the surface-level metrics.
Click-through rate (CTR) tells you how well your ad is capturing attention. Conversion rate shows how well your landing page is sealing the deal. ROAS tells you how profitable your campaign is. And CPA helps you compare efficiency across different products or audiences.
Watch for early indicators of success – or failure.
Treat your campaigns like living systems. Tweak, test, and improve them continuously.
Once you find a winning combination – an ad, offer, and audience that works – it’s time to scale. Increase your budget gradually while keeping an eye on performance. Scaling too fast can tank your results, so go step by step.
Duplicate high-performing campaigns to test new audiences or creatives. Experiment with upsells, bundles, or time-limited offers to increase AOV. Layer in email or SMS marketing to retarget paid traffic and drive repeat sales.
And just as importantly, don’t be afraid to kill underperforming ads. If something isn’t working after a reasonable test period, cut it. Your budget should be flowing to what works – not what you hope will work.
One of the biggest mistakes in paid advertising is chasing one-off sales without thinking about the bigger picture. Winning e-commerce brands think in terms of customer lifetime value.
If your first sale breaks even, that’s fine. (As long as you have a plan to turn that customer into a repeat buyer. ) You can use post-purchase emails, loyalty programs, and retargeting ads to bring people back.
At the end of the day, when you view paid ads as the beginning of a customer relationship – not the end – you unlock real long-term profitability. And at PPC.co, that’s where we want to help you! We offer industry-leading PPC management services for ecommerce and retail brands who want to stop wasting ad spend and start generating real ROI.
Contact us today to learn more!
