Pay-Per-Click (PPC) Digital marketing is a classic marketing strategy that’s commonly used to supplement organic web traffic, but it’s hardly the most straightforward way to increase your site’s audience. In fact, from a technological perspective, it’s a rather fussy practice. That’s why brands that want to include a PPC marketing strategy in their overall strategic decisions need to work with an experienced agency. Agencies facilitate ad distribution, track clicks, and calculate fees – and the best ones can help their clients thrive. Unfortunately, there are a lot of subpar agencies and bad actors out there, and you need to know how to spot them.
So, how do you know if it’s time to fire your PPC agencies? Keep an eye out for these 9 red flags. They could indicate you’re working with the wrong agency and that it’s time to make a move.
Companies leave their PPC agencies behind for all sorts of reasons, but according to a 2015 report by the Society for Digital Agencies (SoDA), the most common reasons include outgrowing the agency’s capabilities, cost overruns, and dissatisfaction with their strategy. These are all valid reasons, and ultimately many of them can be reduced to an agency’s failure to generate any or enough growth. After all, disliking the agency’s strategy isn’t likely to be much of a problem if that strategy is generating major growth. Similarly, a brand is unlikely to view itself as having outgrown the agency is their accounts continue to grow.
Ultimately, what these different reasons for firing PPC agencies demonstrate is that, any way you slice it, no one wants to work with an agency that isn’t making them money. So, while it might take a little while for your PPC ads to gain traction, if you’re not seeing growth based on the launch of or changes to your PPC campaign, it’s time to move on to a different agency.
While most brands work with a PPC advertising agency to run their campaigns, it’s not only possible but advisable for you to set up your own accounts with the major PPC advertising platforms, which include sites like Google AdWords, Yahoo, and Facebook. Still, if you’re not the most technologically savvy, it can be tempting to let your agency do it for you. Don’t give in to the impulse. Instead, ask them to guide you through it so that you can ensure that you’re the one with owner access rights.
Unless you have the owner access rights to your company’s PPC accounts, you can’t be sure you have unmediated access to your campaign metrics or feel good/ confident that you’ll be able to transfer your accounts to another agency or bring them in-house if needed. In other words, your agency could be misrepresenting best results to you or could refuse to relinquish control if you end your contract. You need to retain those rights and then give your PPC agent the appropriate permissions to manage your campaigns. If they balk at this arrangement, show them the door.
Typically, when you look at your company’s profile on a site like Google AdWords, you’ll see that your PPC agency has set up specific goals to help your business grow. These commonly include such metrics as Cost Per Acquisition, Return On Advertising Spend, and Cost Per Lead, though there are plenty of other valuable metrics that are worth tracking. Such measurements assure you that you’re spending your Digital marketing money in the right place, help you budget for ad spending, and offer insights into what’s working and what isn’t.
Unfortunately, you’ll occasionally encounter PPC advertising agencies that fail to set up these metric reports, and they’re not to be trusted. Even if they claim to be using an in-house system, it’s your right to demand they use the standard reporting system for each PPC platform and to fire them if they refuse to. Dashboard-based metrics exist to provide consistent measurements regarding the success of PPC campaigns ad those are the numbers you want to reference.
In a similar vein, some PPC advertising agencies skip the core metrics noted above in favor of less valuable but more appealing “vanity metrics.” Vanity metrics don’t help your business make money and they offer limited insight into your operations. Examples of vanity metrics include any campaign value based on impressions, engagement metrics that don’t drive conversions, and even many of the behavior-based metrics that used to be considered the gold standard in website evaluation, such as bounce rate or time on site.
Ultimately, vanity metrics don’t serve your company because they can be created artificially. An untrustworthy PPC agency might drive up engagement numbers by sharing a great meme on your brand’s landing pages, which will drive likes and other reactions, but won’t actually funnel clients to your site or create sales. Similarly, you can get a huge number of impressions by getting your PPC new ads onto a very popular site, but if no one is clicking on it, all you’ve got is a tally of how many people visited/ web traffic to someone else’s website.
Having the right metrics is important, but if you’re going to meet your goals then your Good PPC agency needs to be adjusting your account settings regularly to refine your campaigns. At a minimum, that means accessing your account to regularly monitoring and fine-tune the settings at least once a week. Such regular check-ins allow your agency to quickly adjust your social media campaigns based on updates to the search engines algorithm, catch any conversion mistakes that could cost your company money, and even react to competitors campaigns.
Be sure that you not only ask your PPC agency how often they access and update your accounts, but that you’re also checking your accounts regularly for updates. The reality is that, although many companies run PPC campaigns, only 10% of AdWords accounts are updated weekly. If your PPC agency can’t meet that standard, ditch them for one that will stay on top of your campaigns.
Just as your PPC agency needs to be fine tuning your accounts regularly, they should also be reporting back on your campaigns at least monthly. While seeing week-to-week progress would be great, as with many kinds of growth, this can be hard to evaluate. Comprehensive, monthly reports, on the other hand, can help you see what your agency has been doing on your behalf, how your accounts are growing, and allow you to be an active participant in your Digital marketing strategy.
Never settle for a company that doesn’t offer substantive reporting. While great reports may offer added insights from your account manager or more labor intensive explanatory work, the majority of PPC reporting is automated – any company that doesn’t provide it is just lazy.
It’s unrealistic to expect that you’ll speak to the same person every time you contact your PPC agency; that doesn’t even happen at your bank or your doctor’s office. That being said, there should be one person who acts as the lead on your account because that allows them to master your brand’s voice, develop a big picture strategy, and generally build up a knowledge base around your brand’s needs and preferences. They might be busy or out of the office occasionally, but anyone whose experienced both approaches – a core account manager and a rotating cast of agents – can tell you that having a point person makes a difference.
If your PPC agency doesn’t have you working with a single, core agent, you may want to ask a few questions to get a better sense of what’s happening. Do they have an unusual in-house strategy, or are they having trouble with employee retention? Do they think it doesn’t make a difference? You can also request that they place you with a single representative, but if that’s not their standard practice already, you’re probably better off going elsewhere. It just doesn’t bode well.
Google AdWords isn’t a new program and there are plenty of other PPC programs out there, but if an agency is committed to this work, then they should have complete Google’s AdWords certification program. You can check on this by asking them to show you their Premier Partner page – it really is that simple. Not having one isn’t necessarily the worst offense a company can commit, but it’s a good indicator that you can do better and should commit your ads spend elsewhere.
Did you pick your PPC agency based on their portfolio of appealing PPC ads/ads or optimized images? That’s a great starting point – it certainly indicates that they can do high-quality work – but it’s not enough if they’re not actually showing you your brand’s own ads before they launch them. Obvious, right? It should be, but many entrepreneurs have been duped by PPC agencies who tell them that their ad is similar to another ad product, which is called ad copy; the client, not wanting to be pushy, walks away with their own notion of their brand’s ad, and meanwhile the agency may not have done any work at all.
Your PPC agency should be giving you the final say on all your paid ads, so if you’ve supposedly got a campaign running and you haven’t seen your ads, ask to see them right away. Odds are good that if your agency isn’t showing you your PPC ads before launching them that they either don’t exist or they’re extremely low quality for online visibility. Great PPC agencies are proud of their work and they want you to see it. Anything less should raise concerns.
Hiring an agency to manage your PPC campaigns will obviously cost more than just the fees for the campaign itself, but the costs involved in running ads with your agency shouldn’t be confusing. That’s because, ultimately, your money should only be going two different places – to the agency and to the ad platform – and everyone at the company should be clear on the split. So, when we say you should be wary about confusing fees, we’re not talking about total cost (that’s a matter for you and your budget), but rather about how the money is split up. For any payment there should be the fee to the agency and the ads spend and it should always be obvious what the division is there.
As popular as PPC marketing is with businesses today, many of the agencies that execute these campaigns don’t do a very good job. They’re wasting your ad spend and your time, and you deserve better. That’s why you should switch to PPC.co’s PPC Management Service.
At PPC.co, we’re committed to ensuring that your ads are reaching the right audience and we know that most agencies just don’t deliver that. Starting from our understanding that website conversions often top out at 2%, we emphasize PPC marketing that pairs first contacts with retargeting efforts to ensure that your brand remains a top-of-mind solution for past visitors. A non-converting visitor is often just someone who hasn’t seen the right content yet, and we want to help you make those connections.
What else makes our PPC Management program stand out? With dual Google Ads and Google Analytics certifications, we have a deep understanding of the systems & AdWords account that get your ads seen and can use tracking data to its fullest potential of web traffic. In fact, that’s why we start every client engagement with a full PPC audit, because even when we’re not leading the campaigns, our skilled professionals can quickly see what’s working and what’s falling short in your current campaigns. From the start, we put our expertise to work for you.
If your PPC agency has exhibited any of the above warning signs, you can’t afford to wait around for progress. It’s time for the protection of business and moves on – to PPC.co. Contact us today to learn more about our PPC Management Services and say goodbye to wasted ad spend and rock bottom conversions. Once you’ve seen the difference a top PPC agency can make in your campaigns, you’ll never believe you let anyone else handle your PPC needs.
Throughout his extensive 10+ year journey as a digital marketer, Sam has left an indelible mark on both small businesses and Fortune 500 enterprises alike. His portfolio boasts collaborations with esteemed entities such as NASDAQ OMX, eBay, Duncan Hines, Drew Barrymore, Price Benowitz LLP, a prominent law firm based in Washington, DC, and the esteemed human rights organization Amnesty International. In his role as a technical SEO and digital marketing strategist, Sam takes the helm of all paid and organic operations teams, steering client SEO services, link building initiatives, and white label digital marketing partnerships to unparalleled success. An esteemed thought leader in the industry, Sam is a recurring speaker at the esteemed Search Marketing Expo conference series and has graced the TEDx stage with his insights. Today, he channels his expertise into direct collaboration with high-end clients spanning diverse verticals, where he meticulously crafts strategies to optimize on and off-site SEO ROI through the seamless integration of content marketing and link building.
Throughout his extensive 10+ year journey as a digital marketer, Sam has left an indelible mark on both small businesses and Fortune 500 enterprises alike. His portfolio boasts collaborations with esteemed entities such as NASDAQ OMX, eBay, Duncan Hines, Drew Barrymore, Price Benowitz LLP, a prominent law firm based in Washington, DC, and the esteemed human rights organization Amnesty International. In his role as a technical SEO and digital marketing strategist, Sam takes the helm of all paid and organic operations teams, steering client SEO services, link building initiatives, and white label digital marketing partnerships to unparalleled success. An esteemed thought leader in the industry, Sam is a recurring speaker at the esteemed Search Marketing Expo conference series and has graced the TEDx stage with his insights. Today, he channels his expertise into direct collaboration with high-end clients spanning diverse verticals, where he meticulously crafts strategies to optimize on and off-site SEO ROI through the seamless integration of content marketing and link building.
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.
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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!
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