These days marketers and businesses excessively rely on digital marketing to achieve their goals. Finding leads, generating interest, qualifying leads, and ultimately converting them into paying customers – all of it can easily be done online. And pay-per-click (PPC) digital advertising is an efficient way to do so. Brands across the globe invest in comprehensive PPC as it builds brand awareness, drives more web traffic, and produces more high-quality leads.
However, like all other online marketing strategies, it is essential to keep an eye on the results and tweak your PPC campaigns for maximum effectiveness. This also includes knowing that you are getting the expected return on your investment in PPC.
ROI is a critical success metric. Let’s find out how you can calculate the ROI for your PPC campaigns and even improve it.
There are three commonly-used ways to measure PPC ROI/calculate PPC ROI success:
Calculating PPC ROI as part of a PPC campaign management shows its actual effect on your business. At the same time, it is vital to check vanity metrics like clicks and impressions to measure PPC success.
As a marketer, you already know that click costs are just one part of the equation. You also need to factor in a range of other expenses when calculating the total cost of a PPC campaign. Some of these include:
All of these expenses affect your PPC campaigns’ total cost. Next, retrieve the total revenue so you can calculate your ROI.
The simplest formula to calculate ROI is:
(Profit – Cost) / Cost
Generally, advertisers refer to ROAS when they talk about ROI because the difference between the two is whether you consider your business’s cost of carrying out PPC advertising business.
ROAS is calculated as:
(PPC Revenue – PPC Cost) / PPC Cost
The result is written in a percentage form. For instance, if your PPC sales are $1,200, while you paid $600 as PPC click costs, the ROAS will be 100%:
($1200 profit – $600 cost = $600) / $ 600 cost = 1.0 = 100%
The ROAS formula is very straightforward, and you can gauge your overall PPC performance and make optimization easy. ROAS is used in bid optimization algorithms to calculate these bids with the help of the bid management platforms.
The calculation of all possible costs, including those to generate leads and sell products, is still insufficient. PPC helps you maximize your profits bringing in maximum visitors and sales at a reasonable cost.
Conversions are highly dependent on the right keywords being used in ads, getting clicks at a good cost, showing Google ads to searchers, and converting visitors to buyers.
To calculate profit per click/impression, you need extensive data for clicks, impressions, total sale, and total cost. First, calculate the profit by subtracting the total cost from total sales (you can also factor in the overhead costs).
Use this formula to calculate the profit per impressions:
Profit / Impressions
Use this formula to calculate the profit per click:
Profit / Click
With these calculations, you can figure out which metric to go for with the keyword or ad or carry out further testing if the information still seems insufficient.
Digital marketing is tricky because it’s constantly evolving. You have to be on your toes and continuously improve your numbers to stay ahead in the race for PPC and search ad domination.
If you find out that the return on investment Or PPC ROI isn’t as good as you expected or could be better, it’s time to improve your game.
Here are a few ways you can increase your PPC ROI:
It is essential to target the right audience for your ads, regardless of the time you display the Google ads to them. Since audiences differ from another for every ad, there might be Google ads that follow a better trend at a specific time.
Generally, ad networks let users schedule the Google ads for the time and days that best suit their needs. For instance, if a local garment store’s ad performs better during a FIFA game, go ahead and pick the same schedule for all your ads.
PPC ads depend on keywords, even more so than they do on demographics. You can understand the customers’ intent with the keywords they use in search or the websites they visit. You can use this data from online activity and enhance your PPC campaigns’ effectiveness using the exact keyword matches.
The exact keyword match will result in the ad being displayed when that phrase is used without any other words. Since you limit an ad’s reach in this way, you have to make sure you use this approach properly so the people who watch the ad are the ones who will most probably buy your products.
For instance, a car dealer selling a Honda Civic EX must use the exact “honda civic EX price” keyword in their ad. Since this is a particular keyword, anyone who searches for it must be a potential buyer of the car, and as a result, the perfect target audience for your car ad.
Even though you have a target audience base, there will be different groups within them who will respond differently to your ads for several reasons. As a result, it is essential to make multiple campaigns so you can cover all of them.
If you resort to using a single PPC campaign to appeal to all these people, you will have a poor ROI. Marketers should carefully design various ads, considering the kind of consumers who would like to use your products and the type of ad that will best explain their value to them.
A great way to improve your PPC campaigns is through negative keywords. This way, your ad won’t be shown to uninterested or unrelated audiences. For instance, a men’s shoe store should use the negative keyword “women” because why should the business pay for a wasted click or view’?
Similarly, a luxury brand that sells expensive goods should use the negative keywords “cheap,” “sale,” or “affordable” to avoid showing the ad to those who want cheaper or imitation brands.
While getting a click on an ad from a customer is huge, your job doesn’t end over there. Ad clicks aren’t enough to generate revenue, and as a marketer, you can improve your ROI with features like videos on your landing page. This helps to increase conversions of customers who click an ad and get there.
Furthermore, you can test your landing page to see if you can easily convert customers once they arrive. When you design targeted landing pages, you allow users to reach a specific page, depending on the clicked ad.
Marketers using Google AdWords should focus on improving their ad’s Quality Score to increase their ROI. The frequency with which the consumers click on an ad and convert after clicking on it affects the score.
Successful ads give more money to Google, and as a result, high-quality score ads are placed higher. It is best to see your ad’s Quality Scores to observe what aligns the most with your target audience.
It is essential to include keywords in your ad copy and target information to capture your viewer’s attention. These words are the ones they consciously or subconsciously look for in an ad when they scan it.
While it depends on an ad’s format, generally, keywords are bold to make them stand out to increase attention and consequently get people to click on your ad.
You cannot improve your ROI and campaigns unless you thoroughly track their results. You can make variations in an ad or its targeting in several ways to affect outcomes. Try out various combinations and track results to determine which target audience and ad type are the most effective.
For instance, you can use variations like different CTAs or distinct background colors for your PPC advertising.
The PPC return on investment/PPC ROI is an essential measure of success since it shows how well you are doing in your campaigns and how much you need to improve.
There are various ways you can measure the ROI and track their results to figure out how you can improve them to make money on your PPC campaigns. Try different methods and see which one aligns with your audience and ads the most. Stick to it instead of going back and forth to ensure a steady approach.
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Pay-per-click (PPC) advertising is the lifeblood of modern digital marketing, a finely tuned machine designed to separate serious advertisers from those who enjoy setting their money on fire. At its core, PPC is about buying attention—whether it’s from Google Ads, Facebook (or should we say Meta?) Ads, LinkedIn’s overpriced clicks, or whatever ad network is currently promising “unprecedented results.” The trick, of course, is making sure that the attention you’re paying for actually turns into conversions, and not just a collection of clicks that lead nowhere.
This guide is for marketers who already know the basics and are ready to squeeze every last drop of ROI from their PPC campaigns. If you’re looking for a “Beginner’s Guide to Google Ads,” this isn’t it. But if you’re tired of watching your ad spend disappear into the void and want to start running PPC like a ruthless efficiency machine, read on.
There’s nothing quite as tragic as a PPC campaign with no clear objective. Running ads without goals is like throwing darts blindfolded—sure, you might hit the board occasionally, but mostly you’re just making a mess. Before you even think about setting up a campaign, define what success looks like. Are you driving leads? Pushing e-commerce sales? Increasing brand awareness (ugh, we’ll get to why that’s usually a waste of money later)? If your goal is just “more clicks,” congratulations—you’ve just fallen for the ultimate PPC scam: paying for traffic that doesn’t convert.
Every campaign should have a quantifiable, measurable outcome tied to business KPIs. That means actual revenue, leads that don’t ghost you, or at the very least, cost per acquisition (CPA) that doesn’t make your CFO break out in hives.
Google Ads is the undisputed king of PPC, but let’s not pretend it’s the only game in town. Depending on your audience and objectives, Meta Ads (Facebook and Instagram) can still be a goldmine—if you’re willing to put up with Meta’s ever-changing rules and the occasional algorithmic meltdown. LinkedIn Ads? Great if you enjoy paying $12 per click for someone who will never fill out your lead form.
And then there’s the rising trend of alternative ad platforms. TikTok Ads are fantastic if you’re targeting Gen Z and have the budget to experiment. Microsoft Ads (formerly Bing Ads) may be the underdog, but they offer cheaper CPCs and a surprising number of high-intent users. If you’re in e-commerce, don’t ignore Amazon Ads—they print money for sellers who get their targeting right.
Google would love for you to just use broad match keywords and let their algorithm “figure things out.” Spoiler alert: this is a terrible idea. Broad match means your ad could show up for searches so unrelated to your business that it’s practically performance art.
Instead, focus on high-intent keywords—the ones that indicate users are actually ready to buy. Long-tail keywords often convert better because they signal more specific intent. The goal is not just to drive traffic, but to attract users who already have their wallets half-open.
Want to know what works? Look at your competitors. Tools like SEMrush, SpyFu, and Google’s Auction Insights let you see what keywords they’re bidding on, which ones they’re ranking for, and—most importantly—where they’re burning money so you don’t have to.
If a competitor is bidding on specific high-intent keywords, that’s your signal to investigate. Either they’re seeing a positive ROI, or they’re making an expensive mistake that you can learn from. Either way, it’s free intelligence.
Great PPC ads aren’t just about catchy headlines—they’re about aligning with search intent, making a compelling offer, and convincing users that clicking your ad is the smartest decision they’ll make today. A well-optimized ad uses clear, persuasive language with a direct CTA, because vague CTAs like “Learn More” are about as useful as a screen door on a submarine.
A/B testing is non-negotiable. Your gut instinct is probably wrong, so test different headlines, CTAs, and descriptions to see what actually drives conversions. If you’re not actively testing, you’re just guessing.
You have about three seconds to convince visitors that they made the right choice clicking your ad. If your landing page loads slowly, looks like it was designed in 2008, or makes users hunt for the CTA, they’re gone.
Your landing page should have a singular focus: conversion. That means no distractions, no unnecessary links, and definitely no autoplay videos that scare people away. A strong landing page aligns perfectly with the ad copy, ensuring a seamless experience from click to conversion.
Nothing kills conversion rates faster than misleading ad-to-landing page alignment. If your ad promises “50% off running shoes” and your landing page is a generic homepage with no mention of that discount, expect a bounce rate that makes your campaign ROI cry. Every landing page should reinforce the ad message, use clear headlines, and make it painfully easy for users to complete the desired action. If a user has to think, they’re already gone.
If you’re still using manual CPC bidding across all campaigns, congratulations—you’re officially working harder, not smarter. Google’s automated bidding strategies have their place, but blindly trusting the algorithm is like handing your credit card to a stranger and hoping for the best.
Smart bidding, when done correctly, can optimize conversions and lower CPA, but it requires constant monitoring. Target ROAS (Return on Ad Spend) and Maximize Conversions can be effective, but only if you have historical data to feed the algorithm. If you’re running a new campaign, manual bidding still gives you more control.
Running PPC without proper tracking is like driving blindfolded and hoping you’ll reach your destination. You need to track not just clicks, but actual conversions, customer lifetime value (CLV), and return on ad spend (ROAS). Google Ads’ built-in tracking is decent, but combining it with Google Analytics, heatmaps, and call tracking will give you a full picture of what’s working.
Scaling PPC isn’t as simple as increasing your budget and watching conversions skyrocket. If you scale too fast, you’ll tank your ROI. The right approach is incremental scaling—gradually increasing spend while monitoring CPA and conversion rates. If your CPA starts climbing faster than your revenue, it’s time to reassess. And if your PPC manager insists that “everything is going great” while your ROAS tells a different story? It might be time for a new PPC manager.
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Most marketers love Google Ads.
We're no exception.
But we totally understand that businesses in certain industries sometimes have a deep resentment of Google Ads and their restrictive policies.
Google's policies for advertising are generally intuitive and straightforward, but for certain regulated and sensitive categories, the standards are much higher and less clear. Pharmaceutical companies, gambling websites, political campaigns, and other industries often struggle to get their ads approved consistently.
In fact, if you don't know what you're getting into, trying to advertise as a business in one of these categories can be a recipe for disaster.
How are you supposed to use Google Ads effectively if you belong to one of these regulated or sensitive categories?
Sensitive and regulated categories in PPC advertising face a number of challenges, including:
· Stricter guidelines. Most PPC advertisers are familiar and comfortable with basic Google Ads guidelines. But if you belong to a regulated or sensitive category, you'll have far more guidelines and more nuanced guidelines to deal with.
· Higher scrutiny. Google pays much closer attention to ads in regulated and sensitive categories, meaning you face closer scrutiny when your ads start circulating. Reports will be investigated quicker and much more strictly, and even minor violations can work against you.
· More ad disapprovals. Similarly, ads are much more likely to get disapproved in these categories. You'll face an uphill battle as you try to get your ads circulating.
· The risk of suspensions. Businesses in these categories also face the risk of frequent, ongoing suspensions. This trend is also worsening; in fact, in 2023, Google Ads suspended more than 12.7 million advertiser accounts – doubling their actions over the previous year.
This makes it much more difficult to advertise effectively and secure a positive return on investment (ROI). Additionally, failing to adhere to Google’s advertising policies can hurt your company's reputation and compromise your long-term potential for success.
The most important thing you can do to improve your results in a regulated or sensitive category is to plan for a sustainable, long-term strategy. Every year, thousands of business owners in these categories attempt to fool Google, find clever ways around its policies, and devise techniques that allow them to cheat the system.
These approaches can usually work temporarily. You can cheat your way into the listings and generate some traffic to your landing page.
But inevitably, these techniques fail, and they can ultimately get you blacklisted.
You're much better off taking the slow, steady approach, following the rules even if it means compromising your advertising effectiveness in the short term. Think about the long-term consequences and possibilities of each decision you make.
There is some good news here.
Google isn’t shy about publishing its advertising policies.
If you're willing to do the reading and research, you can thoroughly understand what Google expects from regulated and sensitive categories like yours – and you can easily adhere to the guidelines.
Well, maybe not “easily,” but reliably.
Generally, Google splits content into two types:
· Restricted content. Restricted content is sensitive content that is subject to more regulations. You must precisely comply with requirements for copy, images, website content, and more if you want to remain in circulation.
· Prohibited content. Prohibited content is totally disallowed. You cannot include it without facing significant consequences.
Unfortunately, we can't give you a big list of all the rules you need to follow, as the rules are different for various industries. Some of the most popular industries and categories that face steeper restrictions include:
· Pharmaceuticals and healthcare products
· Weapons and explosives
· Financial services (including cryptocurrencies)
· Gambling/games of chance
· Alcohol, tobacco, and similar products
· Political ads
· Adult content and services
While there are certainly commonalities between regulations across these categories, each category has its own unique blend of restrictions and rules to learn. For example, pharmaceutical businesses require formal certification from Google and are only allowed in some countries. In the financial services industry, you'll likely need a specific license, and you'll need to provide adequate disclosures for your products and services.
The more intimately you know these rules and regulations and how they apply to your industry, the more likely you'll be able to advertise successfully. Don't advertise until you're sure you understand all applicable Google Ads policies.
One other important note here: you need to stay updated.
Google isn't stagnant, and its advertising policies are constantly in flux. Accordingly, you need to stay abreast of recent changes and update your ad approaches in line with them.
The easiest way to do this is to subscribe to Google Ads policy updates, but you should also regularly engage in Google Ads forums. If you're lucky enough to have a representative, maintain open and transparent communication with them and stay in touch regularly; they can be a massive benefit for businesses in regulated and sensitive categories.
The more research you do, the better. You need to thoroughly understand your advertising landscape before you try to thread this needle.
· Google Ads policies. Obviously, read and understand Google Ads policies as they relate to your industry. We mostly covered this in the previous section, but it's part of the research you need to do.
· Licensing and certification requirements. Even if it's not specifically required by Google, it's a good idea to get any appropriate licenses or certifications. It's a mark of authority and trustworthiness that might save you if any of your ads are reviewed for potential policy violations.
· Laws and regulations. Similarly, violating any laws and regulations in the country where you're advertising could be grounds for ad removal or account suspension, even if those violations aren't specifically listed in Google Ads policies. Always ensure legal compliance before advertising with Google.
· Competitor advertising. It's also a good idea to research your competitors. It's very likely that businesses similar to yours, in the same category, are already advertising successfully. Look at what they're doing. How are they phrasing things? Which disclosures are they including? Do you notice anything missing? You can learn a lot simply by studying previously successful ads.
· Market research. The success of your Google Ads largely depends on your ability to successfully target and appeal to your demographics. If you're properly informative and persuasive, with relevant messaging to the people you're reaching, you're much less likely to face reports, removals, and suspensions. Accordingly, you need to do a deep dive into market research so you better understand your target demographics and can appeal to them with relevant content. If you don't have buyer personas, develop them. If you don't know what your target audience is struggling with or what they want to, pause your ads until you figure it out. There are no shortcuts here, so do a deep dive into your market research if you want a reasonable chance to succeed.
When creating and preparing new ads, make sure everything is compliant, including your copy, your images, and any of your website content.
Remember that the rules and restrictions vary by industry, but these are some general rules that can help you get started:
· Stick to the facts. Don't exaggerate. Don't embellish. Certainly don't lie. It's important to stick to the facts as closely as possible, even if it makes your ad a bit stoic or “boring.” Purely factual advertising rarely gets removed.
· Avoid prohibited or sensitive terms. Review prohibited and sensitive terms that apply to your industry, and avoid those terms like the plague. Consider creating a list of alternatives that you can rely on instead.
· Be transparent. Be absolutely transparent with your target audience, even if you're forced to reveal things that weaken the appeal of your products and services. Offer disclosures when required, and potentially when not required if they can boost your credibility.
· Adopt a serious, professional tone. Don't play with fire. Your best course of action is to adopt a serious, professional tone across your ads. It's much less likely to be reported, and it will seem more authoritative and trustworthy.
· Eliminate sensationalism. In line with this, eliminate all forms of sensationalism. Graphic or revealing content, exaggerated claims, and other techniques designed to evoke strong emotions are probably going to work against you.
· Focus on using images for context. If you're going to include images, make sure they provide meaningful context. Advertisers sometimes select images based on how easily they grab attention or how exciting they are, but this is a surefire way to fail if you belong to a sensitive or restricted category.
· Include warnings if necessary. If there are any warnings that are relevant to your products and services, include them. More information is typically better in matters like these.
· Leverage the power of AB testing. The more relevant and effective your ads are, the more likely they are to succeed. Leverage the power of AB testing to learn more about what your audience wants to see and how to give it to them.
Don't forget about your landing pages.
These are important to Google as well.
If your landing pages deviate from Google Ads guidelines, or if they contradict what's in your ads, it could work against you.
These are some tips to get you started:
· Keep it relevant. Always make sure your landing page is completely relevant and in line with whatever is included in your ad. If users click your ad and find something unexpected, unpleasant, or otherwise jarring, Google might take action.
· Issue disclaimers and warnings. This is an opportunity to double down on disclaimers, warnings, and important disclosures. Err on the side of caution and make these prominent to show that you're in full compliance with both Google Ads policies and laws in your area.
· Make your business information accessible. Make your business information transparent and accessible. Offer your brand name and business location information, and give visitors some way to contact you, preferably via phone and email. It's a sign of trustworthiness and it can proactively resolve potential disputes.
· Be straightforward and transparent. Everything on your landing page needs to be straightforward and transparent. Follow the same rules you did for your ads, and avoid exaggerations and sensationalism.
· Double check Google Ads requirements. Always double-check Google Ads requirements when constructing your landing page. You should fulfill or comply with each item on your landing page to be safe.
You've already done significant market research, so make sure you apply it correctly. Target your audience very specifically so that your messages are only shown to people for whom they are relevant. If someone outside the scope of your target demographics sees your ads, they'll be much more likely to issue reports – and your ads will be much more likely to be removed. It's especially important to target people in the right geographic area.
There are some Black Hat techniques designed to circumvent Google Ads rules and regulations, or otherwise give you an unfair advantage in a sensitive or restricted category. These techniques typically violate Google policies and are largely considered unethical by the advertising community.
One of the most prominent examples is cloaking. Using one of several techniques, cloaking can allow you to advertise to audiences with content different from what you showed Google for approval. It's obvious why this is potentially beneficial, but it's also obvious why this is unethical.
As you might imagine, these techniques can work temporarily. They can give you a significant short-term advantage, allowing you a better strategic position and potentially more ad opportunities. However, if you use them, you could get your account suspended, or even permanently blacklisted. Even if you evade that, you could ruin your company's reputation and jeopardize your long-term results.
Do not follow these strategies. If a PPC agency recommends any such strategies to you, fire them.
They simply aren't worth it.
Navigating the world of Google Ads isn't easy.
In fact, it's stressful and incredibly difficult if your business happens to belong to one of these sensitive or restricted categories.
The good news is it's much easier to be successful when you work with a PPC advertising agency that has experience creating and managing ads for a business like yours. We're deeply acquainted with all the rules and restrictions you need to worry about, and we know how to make target demographics like yours convert.
If you’re ready to get started with a free consultation, contact us today!
