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PPC Agency Blog

How to Build Better PPC Campaigns for Your Law Firm
The Electrician’s Guide to Running PPC Ads That Actually Bring In Paying Customers
High-Performance PPC for Roofing Contractors: A Tactical Guide to Lead Generation
PPC Tips to Help Plumbers Get Real Leads Without Wasting Money on Clicks
Strategies for Maximizing ROI with PPC Management
How to Use Google Ads in a Restricted or Sensitive Category
Google Ads vs. Linkedin Ads: Which is Better for Commercial Targeting?
9 Reasons To Fire Your PPC Agency
How To Start A PPC Agency?
What are the Right PPC KPIs to Track?
How to Write Great PPC Landing Page Headlines
Basic Guide to Retargeting in Google Ads PPC
Display URLs: Optimizing Display URLs for Google Ads & PPC
What Marketers Should Know About Automated Bid Algorithms in PPC
Ultimate Guide to PPC Remarketing: Bring Users Back When They Don’t Convert
Should You Avoid Automated Bidding With Google Ads?
How To Dial In Your Cost-Per-Lead Using PPC?
How to Find the Best Conversion Rate Optimization (CRO) Services
PPC Management Pricing: What Should I Pay My PPC Agency?
How Much Does it Cost to Sell On Amazon?
10 Most Important PPC Metrics to Track
What Makes a Good Click-Through-Rate in Google Ads PPC?
Implementing Flexible Bid Strategies in PPC
How to Set Up Facebook Retargeting
How to Increase Landing Page Conversions
Understanding Google’s Ad Rank Formula in PPC
How to Improve Facebook Ads Conversions
How to Implement a Successful Video Ad Campaign
Google Ads vs. Facebook Ads: Which is the Better Advertising Medium for Your Business?
Negative Keywords: The How & Why of Negative Keywords List Building in Google Ads
How to Use “Not Provided Keywords” to Maximize Google Ad’s Impact
How to Avoid Choosing the Wrong Ad Rotation Setting
Chiropractor PPC: Google Ads Guide for Chiropractors
PPC Keyword Match Types & Why They Matter
PPC Marketing Management for Law Firms: A Comprehensive Guide
Broad Match: Best Practices for Targeting Broad Match Keywords in PPC
How to Use Shared Campaign Budget in Google Ads
How to Adjust for Seasonality in PPC Advertising
7 Alternative PPC Ad Networks
Improve Your PPC with Conversion Funnels
How to Use Google Keyword Planner
How to Avoid Keyword Cannibalization in PPC
12 Best Tips for PPC Calls to Action
Dynamic Search Ads for Beginners
How to Take Over Management of an Existing Google Ads Account
How & Why To Leverage Amazon Sponsored Brand Video Ads
Dayparting: Setting Up Time Of Day Bid Adjustments In PPC
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How To Warm Up Your Instagram Audience
8 Tools for Analyzing Your Competitors in PPC
How To Create Better Ad Groups In PPC
How to Target Competitors On Facebook With Interest-Based Audiences
Most Common PPC Questions & a Few Answers
8 Best Link Building Tools for SEO
How To Calculate The ROI For PPC & Improve It
Strategies for Increasing Click-Through Rate in PPC
Exact Match Keywords: How to Target Exact Match Keywords in PPC
How to Perform B2B Lead Generation on Linkedin
Google Ads Suspension: ‘How-to’ Guide for Fixing a Suspended Google Ads Account
The Ultimate Guide to Google Ads Quality Score
How Often Should You Update Your Google Ads Campaigns?
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eCommerce PPC Strategies for Maximum Sales Growth
What Is ROAS? Complete Guide To Return-On-Ad-Spend For PPC
How to Scale Your PPC Campaigns
9 Pointers For Increasing The CTR For Google Ads
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Why Aren’t My Google Ads Showing & What to Do About it
PPC for Accountants & CPAs: A Beginner’s Guide
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PPC Automation Tools for Scaling Campaigns
SEO vs. PPC: 21 Best Practices for Organic & Paid Marketing
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5 Local Lead Generation Tactics Using PPC
Complete Guide to Local PPC: How to Target for Local Paid Search
A Guide To PPC Competitor Analysis in Paid Search
Why You Should Use Dynamic Landing Pages in PPC
How to Improve Google Ads Conversions
How Much Do Instagram Ads Cost
What is Cost Per Click in PPC?
Google Ad Extensions Explained
Understanding Ineligible Clicks in Google Ads
Optimizing “People Also Search For” in PPC
Landing Page Conversion Rate Optimization for SEM/PPC Campaigns
How to Perform Keyword Research with Google Ads Keyword Tool
Optimizing PPC Campaigns for SaaS Businesses
8 Landing Page Test Ideas for PPC
9 Excel & Spreadsheet Tips for PPC Managers
How to Beat PPC Seasonality Issues
How to Do Cross Channel Lead Generation With PPC
How to Use Micro Conversions for Lead Generation with PPC
The Eventual Deprecation of Third Party Cookies
A/B Testing for PPC Lead Generation Success
12 Must Have PPC Certifications
Optimizing for Profit (Instead of CPA, CPL, or even ROI) in PPC
How to Get a Lower Cost Per Click for Your Google Ads

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Samuel Edwards
|
December 6, 2024
A/B Testing for PPC Lead Generation Success

When your goal is a long-term, successful PPC campaign that brings you a steady stream of qualified leads, you need to run A/B continuously.

Also known as split testing in digital marketing, this is the only reliable way to determine which variables contribute to higher conversions and profits.

Once you pinpoint the profitable ad variations, you can implement them across all of your campaigns for the best results.

A/B testing overview

AB Testing

In general, the idea is to run two or more simultaneous Google Ads campaigns that differ in small ways, both in your ad and your landing pages. You start with a main campaign as your control, and then create additional ads and landing pages with slight differences to see how well they perform against each other.

After a period of time, you’ll know which ads and landing pages perform the best. From there, you can analyze which variables are present on your high-performing ads and pages, apply them to all of your campaigns, and then start testing other elements to get even better results.

For example, you might run five campaigns with the same ad, but users are redirected to five different landing pages, each with a unique heading. Or, your landing pages might have a different format, colors, or typography. You can test any element, no matter how small, and sometimes it’s the small things that count most.

If you’re curious about split testing your PPC ads, this article will help you understand how this process works and how to apply it in your campaigns.

What elements can I plit test?

You can run an A/B test for just about any element you can alter in your Google Ads campaign. For example, it’s common for people to test the following:

  • Ad images on the PPC platform
  • Ad headlines
  • Ad demographics/target market
  • Calls-to-action (CTA) on landing pages and ads
  • Landing page headlines and copy
  • Landing page layout (the placement of key elements)
  • Landing page design (visual elements, like button colors and sizes, typography, images, etc.)
  • The inclusion or omission of a main menu
  • The inclusion or omission of testimonials
  • Anything else that has the potential to impact a lead’s decision to engage/convert

How do split tests work?

How do split tests work?

There are two main elements that power A/B testing: time and structure. Let’s look at each of these in-depth.

Structuring a successful A/B test

Running digital marketing A/B tests is easy, but you need to set it up to extract actionable insights, and that’s where things can get a little challenging. If you follow these tips, you’ll have an easier time.

1. Maintain your control

Your control campaign is the original, unaltered version. Always keep your control running alongside additional campaigns with changes. After your tests, when you find your highest performing campaign, that should become your new control to replace the old. From there, you’ll aim to beat your control once more by testing new elements.

Repeat this process indefinitely, and always remember to maintain your control so you can see what elements are performing better against your existing standard.

2. Test one element at a time

The first thing to remember is not to attempt to test too many variables at once. Testing multiple things at once will make it hard to know which change is responsible for an increase or decrease in conversions. Stick to testing a single variable until you’re satisfied with those results and then start testing the next element.

3. Give your PPC split tests enough time

10,000 experiments rule

When running a test, you’ll need ample time to generate enough traffic, clicks, and sales to see what’s working between each version being tested. You won’t get results overnight or even in a week. Your A/B tests need to run long enough to create statistical significance in the results.

The suggested time period is however long it takes to reach 10,000 sessions, also known as the “10,000 experiments rule.” This is an alternative version of the concept that it takes 10,000 hours to become proficient in a given skill. The idea behind this is that deliberate experimentation is more valuable than deliberate practice. It’s true – if you don’t experiment deliberately, you won’t get the data you need to see what’s working in your PPC campaigns. However, 10,000 experiments (or 10,000 interactions) can seem like a bit much for smaller businesses.

Reaching this goal could take months for many organizations that don’t have a massive PPC budget. However, if this applies to you, set a goal to reach 1,000 sessions or put a cap on your tests at the 60-day mark. Either way, just wait until you have a decent amount of data to work with even if you don’t reach that 10,000 mark.

4. Know your goals

Running split tests without specified goals isn’t going to help you. It’s crucial to know exactly what you want to get out of your tests. For example, everyone wants more leads, but what does that look like beyond the surface? Would you feel like you achieved your goal if you got 500 new leads that never make a purchase? Or do you only consider it a success if you generate targeted leads that at least have the potential to buy in the future?

Getting targeted leads is just one example of a specific goal. You may want leads who will sign up for your email list and then watch a video or follow you on Instagram. For long-term success, you’ll want to align your A/B tests with your goals, otherwise you could spend years testing the wrong elements – the ones that don’t directly influence the actions you’re trying to elicit.

Implement specific success/fail measures

To get actionable insight from your tests, you’ll want to identify the metrics that denote success or failure other than just the number of leads you collect. These might include:

  • Conversion rate
  • Average purchase amount
  • Time spent on the site
  • ROI

Tips for evaluating your A/B tests

To make improvements, you have to know how your experiments are performing.

1. Use visual analytics

Figuring out if your tests are successful requires some serious data analytics. You’ll need to analyze a handful of key metrics to see how people are reacting to the changes you’ve made, and you can accomplish this with a visual form of behavioral analytics. According to Investopedia, behavioral analytics can support a number of different hypotheses at once and makes it easier to evaluate your experiments.

When you have a visual data report of your tests, it’s easier to understand which elements are supporting your goals and if a certain version of your ad copy is good enough to apply to all of your PPC campaigns and/or become your new control. Additionally, tracking key performance indicators will help determine whether your adjustments are driving meaningful engagement and conversions.

2. Implement session recordings

Also called session replays, this is where a user’s actions are recorded as they interact with your website. Mouse movements, clicks and taps, and scrolling are the most common actions recorded.

Implementing session recordings into your split tests can help you improve your PPC ad campaigns immensely. Not only will you have data, but you’ll have a real-time account of how users interacted with your page, which will give you some specifics you can’t get any other way. For instance, a user might start to fill out a contact form and then stop at a certain question. Or, they might abandon the checkout process at a certain stage and their mouse clicks might tell you why.

Session replays are an excellent way to improve your conversion rate, and when paired with A/B testing, they’re even more powerful.

3. Use heatmaps

Use heatmaps

Heatmaps can provide you with valuable insight into which parts of your web pages are performing well (or not). These maps will show you where your visitors are focusing most of their attention, where they’re clicking, if and how long they’re scrolling, and what might be distracting them from taking the desired action.

For example, a scrolling heatmap can tell you if users even saw your CTA. Perhaps many don’t scroll down far enough, and you’ll need to move the CTA higher up on the page. If you don’t use a heatmap, you won’t know that many of your visitors never even saw your CTA. All you’ll know is that you didn’t get clicks. This could lead in circles, causing you to test different CTAs, when your original one might be just fine when made more visible.

4. Track traffic sources in your Google Ads account

Sometimes, it’s your traffic source that supports a more successful Google Ads PPC campaign. Make sure you’re tracking where your visitors come from so you can determine which traffic sources lead to higher conversion rates. You might find some sources to be complete duds, and that means you’re either targeting the wrong audience within that PPC platform or the platform itself isn’t where your market spends time.

Many businesses run PPC ads on every platform they can find, like Instagram, Facebook, Twitter, LinkedIn, and Google Ads. However, some markets rarely (or never) spend time on certain platforms. For example, if you’re trying to reach a highly technical and scientific-minded market, you probably won’t reach many people on Instagram. Sure, there are plenty of science-related accounts, but they’re not usually scholarly. It just doesn’t attract that type of market. Instagram is more for entertainment and visual appeal than sharing scientific research, discoveries, and theories.

If you discover that some of your traffic sources aren’t producing conversions, reconsider if you’re on the right platform. If you think you are, then start adjusting your target audience. If that doesn’t generate more leads, consider abandoning the platform because it’s not worth wasting ad spend where you aren’t getting results.

Key PPC lead generation takeaways

A/B testing is a crucial component in your Google Ads PPC lead generating campaign. The key is to define your paid search goals before setting up your experiments, and only test one change at a time.

Be willing to wait for statistically significant results so that you can know for sure that you’re making the right changes. Keep your control clean and consistent but replace it when you find a new ad or landing page that consistently achieves a higher conversion rate.

Last, don’t stop split testing when you get your first taste of success because there’s always room for improvement and you can always do better. You’ll need to adjust your goals and hypotheses over time, but that’s just part of the process. Split testing should be a continuous endeavor and if you get stuck, you can always reach out to a professional PPC marketing company.

Samuel Edwards
|
December 6, 2024
12 Must Have PPC Certifications

Getting big results from your PPC ads requires more marketing knowledge than the average person. Anyone can run ads and get clicks, but few achieve an exceptional conversion rate of >12%.

How do you rise above the average conversion rate of 2.35%? You need higher knowledge and a stronger strategy. However, you need to learn the ins and outs of each ad platform to supplement your general PPC knowledge.

Whether you’re running PPC ads for your own businesses or for clients, building your skill set for specific platforms will greatly improve your results. Even though all paid ads generally work the same way, each marketing channel is slightly different in terms of strategy, how you target your audience, and the market you can reach. For optimal results, you need to know where platforms share similarities, how they differ, and how to leverage each one.

Certifications will also prove your expertise to clients, look great in your portfolio, and will help you build confidence in your online advertising abilities.

If you’re new to PPC ads, you’re not hitting a conversion rate of at least 10%, or you need tangible evidence of your expertise, consider obtaining the following PPC certifications.

1. Google Ads Certification

Google Ads Certification

Overview:

Most businesses that run paid ads rely on Google Ads certifications specifically for the majority of their leads. Google is the top search engine and has about 92% of the entire search market, which makes advertising on this platform essential.

Google’s 8 PPC certifications

Here’s an overview of the 8 PPC certifications you can get from Google, all of which are at the beginner level and include a series of assessments to prepare you for the exam.

Google Ads – Measurement Certification

This course takes about 4.7 hours to complete and will train you to “measure and optimizing Google search campaigns performance.” You’ll learn how to translate marketing objectives into measurable actions and derive actionable insights from data.

Google Ads Creative Certification

This course can be completed in around 3.9 hours and will teach you how to use Google’s tools to create “effective ads for Video, Display, App, and Search campaigns.” You’ll also learn how to boost performance by experimenting with ads.

Grow Offline Sales Certification

After 2.6 hours of study, this course will teach you how to “connect products and services with shoppers across their purchase journey.” Running an offline sales strategy is just as important as your PPC ads, and you’ll learn all about how they are connected.

Google Ads Search Certification

With an average completion time of 3.7 hours, this course will help you master “building and optimizing Google Ads Search campaigns.” This is one of the most important courses, and you’ll learn to boost performance with automated processes like Bidding and Audience Solutions.

Google Ads Display Certification

This course can be completed in around 2.6 hours and will teach you to “deliver effective display advertising to meet specific marketing objectives.” Using Display Audiences, you’ll learn how to reach more customers and align your Display Ads marketing plan with your budget.

Shopping Ads Certification

This course takes about 3.1 hours to complete and you’ll learn how to “connect products and services with shoppers across their purchase journey.” Although the objective is similar to the Grow Offline Sales Certification, this course specifically pertains to Google’s Shopping ads.

Google Ads Video Certification

With around 4 hours of study, you’ll learn how to “get results from YouTube and Google Video advertising solutions.” These two platforms are essential for paid ads, especially when you’re working with clients. YouTube Ads are an essential component of any PPC campaign. Running ads on videos requires a slightly different approach, and this course will teach you how to navigate this aspect of PPC advertising.

Google Ads Apps Certification

This is one of Google’s shorter PPC certification courses and takes around 2.8 hours to complete. This course will teach you to “create and optimize App campaigns to meet specific marketing objectives.” You’ll learn advanced strategies to elevate your App campaign performance and increase app quality an discoverability.

Features and benefits:

When you take the above courses, you’ll get video lessons, a knowledge assessment, and preparation assessments to help you pass. The exams generally take just over an hour to complete, and it’s recommended to get certified in every area to get the best results in PPC advertising.

Pricing:

All of these certifications are free, and you only need a Google account to get started.

2. SEMrush PPC Fundamentals

SEMrush PPC Fundamentals

Overview:

You can never go wrong with Semrush. Considered a leader in digital marketing, Semrush offers high-quality, valuable resources to digital marketers, and the PPC Fundamentals certification is no exception.

If you’re just getting started with PPC and are a complete beginner, you want to start with this certification. You’ll be asked 35 multiple choice questions spanning a total of eight topics:

  • Bidding and Budgeting
  • Display Ads
  • Multi-Touch Conversions
  • PPC Overview
  • Search Advertising
  • Shopping Campaigns
  • Strategy
  • Universal App Campaigns

To pass this exam, take the free PPC Fundamentals Course offered by Semrush Academy.

Features and benefits:

This is a basic exam, but it’s essential for beginners as it makes complicated and advanced concepts easier to learn.

Pricing:

You can take the training and get certified for free with a Semrush account.

3. Microsoft Advertising Certified Professional

Microsoft Advertising Certified Professional

Overview:

The Microsoft Ad network displays PPC ads across several channels, including Bing search, Yahoo, and AOL. Next to Google, this is one certification you don’t want to skip if you’re serious about your paid Google Ads campaigns.

As a Microsoft Advertising Certified Professional, you’ll learn how to manage, set up, and optimize PPC campaigns across the Microsoft Ad network. To prepare for this exam, you’ll use a free 232-page study guide that covers an extensive amount of information that will be on the exam.

Features and benefits:

When you access the study guide, you’ll learn about Microsoft advertising policies and how the platform works. Once you pass the exam, you’ll get a certificate to print and your name will be added to Microsoft’s member directory.

Pricing:

Like Google, Microsoft offers this course and exam free of charge; you only need a Microsoft account to get certified.

4. Facebook Certified Digital Marketing Associate

Facebook Certified Digital Marketing Associate

Overview:

PPC advertising on social media is huge, and most businesses use Facebook Ads because that’s where people spend a majority of their time. If you want to promote your business on Facebook, you need to learn how to use their online advertising platform.

This certification course will teach you how to create and manage ads, establish your presence on Facebook, and read reports. This is important because Facebook offers some of the most nuanced and detailed audience targeting options. You can even target your competitors’ audiences.

Features and benefits:

There aren’t many courses or certifications specific to social media advertising, so this is a valuable certification that you can apply to other social channels. To start learning, access Meta Blueprint and select your certifications from there.

Pricing:

This certification is free, and you only need a Facebook account to get started.

5. Directive Institute PPC Certification

Directive Institute PPC Certification

Overview:

This is a 10-hour certification course that covers 13 different aspects of PPC marketing. You’ll learn how to build, manage, and optimize PPC campaigns on any platform.

Features and benefits:

Compared to other courses that focus more on the details, this takes a more general approach that will help you get started right away. In addition to video tutorials and text lessons, you’ll get access to templates to build ads and landing pages so you can start your first PPC campaign quickly.

Pricing:

Currently, it costs a one-time fee of $99 to access all of the Direct institute courses and certifications. This includes PPC, CRO, SEO, Data Analytics, and Optimization.

Tips for passing PPC advertising certification exams

Like any exam, you’ll need to study hard to pass your PPC certifications on the first try. Even though most exams are free, that doesn’t mean they’re easy. Here are some tips to prepare yourself to achieve a passing score.

Refresh with the basics

Never underestimate the importance of knowing PPC basics like the back of your hand. Most course certifications place a strong emphasis on fundamentals, so make sure you don’t skip the basics. If you’ve been doing PPC ads for a while, brush up on your general knowledge to make sure you haven’t forgotten any important details.

Get a study partner

Sometimes it helps to have a study partner you can talk to and go over points within real time. Text and video materials are helpful, but nothing beats discussing your points of confusion with someone else who might be able to rephrase things for you. You can also make up your own quizzes and run some paid search advertising campaign experiments together.

Don’t wait too long to take the exam

Most people make the mistake of waiting too long to take exams because they never feel ready. The truth is, you’re probably more ready than you think. It’s important to pace yourself and not rush into taking an exam, but if you’ve done a fair amount of studying, don’t wait until you feel like you’ll get a perfect score. The goal is not to get 100% on every exam. The goal is to pass and then use the feedback from the questions you missed to round out your knowledge and study more.

If you wait too long to take the exam, you’ll forget some of the things you’ve learned. However, if you take it before you’re truly ready, you either won’t pass or your knowledge won’t be retained afterward.

Get experience as soon as possible

Last but not least, start acting on what you’ve learned as soon as possible. PPC digital advertising knowledge is important, but nothing solidifies concepts like applying them in the real world. If you want to leverage PPC marketing to get big results, you need to apply what you’ve learned to see how it all works.

Don’t be afraid of making mistakes. Start experimenting with a small test budget as soon as possible and in time, with dedication, your skills will improve and you’ll be able to get the higher conversion rates most businesses only dream of achieving.

Samuel Edwards
|
December 6, 2024
Optimizing for Profit (Instead of CPA, CPL, or even ROI) in PPC

What does it mean to optimize a PPC campaign?

In the abstract sense, optimizing a PPC advertising campaign is simply making changes so that the campaign performs better. But then, what exactly is “better”?

It’s a tricky and complicated equation. Your optimization practices will require tweaks to your advertising, your targets, your landing pages, and possibly even what you sell to your customers.

Most optimizers make all of these changes in pursuit of one or a small handful of different metrics. But I’m here to make the case that if you optimize for CPC, CPA, CPL, or even ROI, you might be missing out on your true potential.

Instead, you need to optimize for profit.

Too Many Metrics in PPC?

Too Many Metrics in PPC?

Part of the problem here is that there are so many different metrics you can track in a PPC campaign. We live in an era where data is abundant, and where even inexperienced marketing managers must take on the role of a data analyst at least occasionally.

When there are so many different variables and metrics to juggle, it can become overwhelming.

Just take a look at the following:

  • CPC. Cost per click measures the price of each click in your campaign.
  • Conversion rate. Conversion rate is a measure of how many people are taking a meaningful action once they explore your landing page.
  • CPA. Cost per action measures how much you’re spending for each meaningful action taken by your users.
  • CPL. Cost per lead measures how much you’re spending per each new lead.
  • ROI. Return on investment is a measure of how much new revenue you’re generating, compared to what you’re spending.
  • ROAS. Return on ad spend is like ROI, but focused on one campaign.

All of these metrics can tell you how your campaign is performing, and all of them are worth optimizing for. But when it comes down to it, are some of these superior to the others? If you have high marks in each area, does that really mean you’re performing to your fullest potential?

Let’s explore this idea.

Optimizing for Profit in PPC: A Simple Thought Experiment

Optimizing for Profit in PPC: A Simple Thought Experiment

Now let’s make the case for why profit should be your number one concern when optimizing a PPC campaign.

Let’s say we have two different businesses, Alpha and Beta.

Alpha is currently operating with a $100 CPA and an impressive ROI of 10x, ultimately earning 10 times their initial investment.

Beta is currently operating with a $200 CPA and an ROI of 5x, ultimately earning 5 times their initial investment.

Which business is doing better overall?

Your first instinct should tell you that Alpha is doing better. Getting your CPA lower is a mark of higher efficiency, and many advertisers treat ROI as the gold standard for measuring campaign effectiveness. With both a higher CPA and a higher ROI, we should expect Alpha to be better.

But of course, we wouldn’t present a hypothetical situation like this if the answer was so obvious.

The reality is, either one of these advertisers could be doing better; we simply don’t have enough information to tell.

We’re already using our imaginations, so let’s imagine a few more details.

Let’s say Alpha currently gets 15 conversions with a per-conversion margin of $1,000.

Beta, however, currently gets 40 conversions with a per-conversion margin of $1,000.

The margins are the same – but which company is doing better?

Alpha’s gross margin with 15 conversions should be $15,000.

Beta’s gross margin with 40 conversions should be $40,000.

Alpha spent $1,500 to get there, leading to an ROI of 10x.

Beta spent $8,000 to get there, leading to an ROI of 5x.

Cool! Alpha still has better overall metrics than Beta.

But let’s look at their total profitability. Alpha made $15,000 and spent $1,500, giving them $13,500 in profit. Beta made $40,000 and spent $8,000, giving them $32,000 in profit.

Now tell me – would you rather have a $13,500 profit or a $32,000 profit?

In this scenario, Beta is actually doing better. Are you surprised?

The Trick: Why Profit Optimization (Sometimes) Does Better

Seeing this scenario unfold is like witnessing a magic trick. It feels like there’s something wrong or something missing in this equation, but the crux of the trick is actually quite simple. The big difference is volume. Though the efficiency metrics of Alpha are far superior, Beta is securing more conversions. Assuming the profit margins are the same, Beta is doing better because the company is ultimately seeing more conversions from their campaign.

If you choose to focus on optimizing profits, rather than optimizing for other metrics, you can see similarly powerful results. Instead of trying to chase peak efficiency metrics or brag about your low CPA, you’ll be maximizing profit by leveraging sophisticated pricing strategies to stay competitive. This approach ensures that you are not only increasing conversions but also securing the highest possible returns – greatly benefiting in the long run.

The Dangers of Status Quo Thinking in PPC

Too often, PPC ad managers suffer from status quo thinking.

They believe that as long as they’re getting clicks with a positive ROI, the campaign is worth continuing to run as is.

Part of this is a fear of loss; if you tinker with too many variables, you could end up compromising your results rather than improving them. Another part of this is sheer laziness; why bother trying to improve your PPC campaign if it’s already performing decently enough?

In any case, it’s your responsibility to step up and continue optimizing your campaign for better performance. That doesn’t mean you can’t be satisfied with good results – it just means that you have to keep pushing for better results.

What Steps Can You Take to Optimize for Profit in PPC?

What Steps Can You Take to Optimize for Profit in PPC?

So, how do you see those better results?

What actionable steps can you take to optimize for profit in your PPC campaign?

  • Look beyond the vanity metrics. All marketers have fallen into the temptation of looking at vanity metrics at some point. In social media marketing, that means focusing on your follower count instead of the number of people buying from you because of what they saw on social media. In PPC advertising, that means focusing on efficiency metrics like CPA, rather than bottom-line metrics like profitability. You need to look at the entire spectrum of variables and metrics to understand the big picture, so you can plan your campaign as effectively as possible while also factoring in customer behavior and market demands to ensure success.
  • Don’t fall prey to confirmation bias. Confirmation bias is a killer in PPC advertising analytics. If you’re just looking for data points you can brag about, or if you’re looking to prove that your campaign is increasing in efficiency, you’ll probably find exactly what you’re looking for. Unfortunately, focusing too heavily on the metrics that prove you’re right, or prove that your campaign is working, could prevent you from discovering room for improvement. Instead, consider profit optimization strategies that align with business profit goals and maximize profitability in the long run.
  • Optimize your entire business. This article is primarily focused on PPC advertising, but if you want to make the most of your ad campaign, you may need to optimize your entire business. As you can see from our example, a higher profit margin could instantly disrupt our equations; if you can find a way to make more money per transaction, or do a better job of incentivizing more transactions, your ad campaign will instantly become more effective. Analyzing customer demand and your target market will also help you refine your approach for profit maximization.
  • Be willing to spend more. Assuming you can see steady returns and maintain your performance, consider spending more on your PPC ads. If every dollar you spend on advertising returns $10 to you, it makes perfect sense to spend more dollars. Bigger campaigns may be more complex, but they’re worth pursuing.
  • Don’t sacrifice growth for efficiency. The biggest trap to watch out for is sacrificing growth for efficiency. In the pursuit of chasing a lower CPA or a higher ROI, you could end up making changes that hurt your long-term profitability. You have to remember that profitability is the ultimate goal of your campaign – and anything that compromises your profitability is going to set you back. There’s nothing wrong with optimizing for CPA, CPC, ROI, or ROAS, but these metrics all need to be secondary considerations, with the primary consideration being profit. And of course, never lose sight of customer satisfaction, as a loyal customer base is key to sustained business profit.

Are you interested in optimizing your PPC advertising campaign for profit?

Or are you struggling to get your PPC engine up and running?

PPC.co could be the perfect partner for you. Contact us today for a free consultation or to learn more about our PPC advertising services!

Samuel Edwards
|
December 6, 2024
How to Get a Lower Cost Per Click for Your Google Ads

There are few variables as important to your PPC campaign as your cost per click (CPC).

It represents what you’ll pay for each user who clicks on your targeted ads – which means a difference of even a few cents can add up to thousands of dollars in a large-scale campaign.

Unfortunately, you can’t directly manipulate this variable the way you can, say, the number of ads you run or the total budget of your campaign. Your CPC is determined by Google (or the advertiser of your choice, though we’ll be mostly focusing on Google in this guide).

But you can influence your CPC with the right strategies.

And if you’re persistent, you can bring it down to a very reasonable number.

So how do you do it?

Why You Should Lower Your Cost Per Click in PPC Advertising

Cost Per Click

Why should you care about lowering your cost per click in PPC?

The obvious benefit is that it can save you money.

Think about it; if you can maintain a consistent conversion rate, with a consistent conversion value, a lower CPC will lead directly to a higher ROI for your strategy. It’s a lower cost basis, with all other factors being (mostly) equal.

Lower CPCs can also help you target better keywords more aggressively, make the most of a thin budget, and compete with rivals that would otherwise outspend you easily.

Two Approaches to Lower Your Cost Per Click in PPC

In this guide, we’ll focus on several tactics that can help you lower your CPC. These factors can be grouped into two main categories:

  1. Improving your Quality Score. In Google Ads, your Quality Score is a measure of the quality and relevance of your ads and target keywords. A high Quality Score isn’t just a flattering comment; higher Quality Scores are associated with better ad positions and – you guessed it – lower CPCs. If you can boost your Quality Score enough, your average CPC should go down.
  2. Avoiding competition. Like all other goods and services, the price of advertising fluctuates in response to changes in supply and demand. Since advertising supply is practically unlimited in the digital world, demand is the more important variable; excessive demand for a specific type of ad or a specific platform is going to push prices higher. If you can find a less competitive, lower-demand space, you can score a lower CPC.

Improve Your Quality Score

Google Ad Quality Score

We’ll start by focusing on your Quality Score; again, the higher this rating is, the lower your CPC should be.

In this section, we’ll be focusing on Quality Score in Google Ads. Keep in mind that other PPC platforms have similar advertiser ratings that may function differently.

According to Google, Quality Score is typically calculated based on three factors. Each of these three factors is rated as average, above average, or below average.

  1. Expected clickthrough rate (CTR). Based on aggregated data from historical performances, Google estimates the clickthrough rate (CTR) for each ad. In other words, if a user sees this ad, how likely are they to click on it? A higher anticipated CTR is associated with a higher Quality Score.
  2. Ad relevance. The ad relevance also matters. This is more of a qualitative measure, defining how closely aligned your ad copy is with the user’s search keywords and search intent. You need to give people what they’re looking for.
  3. Landing page experience. Quality Score also depends on the overall landing page experience. Do users spend time on your landing page? How likely are they to convert? Is your landing page content aligned with your ads and target keywords?

Above average ratings in all three areas should lead to a higher Quality Score, which in turn, should lower your CPCs.

Here are some of the best tactics you can use to boost your Quality Score reliably:

  • Use single keyword Ad Groups (SKAGS). Landing pages and text ads are keyword specific, so consider using single keyword Ad Groups (SKAGS). This will make it much easier for you to ensure that all your ads and landing pages are closely aligned with search terms and user search intent. Sure, it’s a bit more work on your end, and it might disrupt your existing grouping strategy, but if it means boosting your ad rank, it’s worth it.
  • Don’t worry about match type. Quality Score is based on historical impressions for exact searches – so there’s no need to worry about match type. This is an important variable to consider in your Google Ads campaign, but don’t waste your time experimenting with match type for the sake of pumping up that ad rank.
  • Focus on user intent. When targeting a specific keyword, it’s a good idea to include that keyword (or a close variant) in your ad to maximize its relevance. But you also need to go a step further; you need to understand why a user is searching for this term so you can give them what they want in each ad. For example, if a user searches for “sturdy bookshelf,” we can reasonably conclude they’re looking to buy a shelf that serves the specific purpose of holding lots of heavy books (or similarly heavy items). It’s not illegal to advertise similar products, like ornamental bookshelves or decorative shelves, but it’s much better to focus on the primary user intention to increase search volume and visibility on the search engine results page.
  • Split test and rotate your ads. It’s hard to tell exactly which types of ads will result in higher Quality Scores and CTRs, which is why we need to practice ongoing experimentation. The best way to do this is to split test (AB test) and rotate your ads. Split testing means circulating two different ads under similar conditions to see which one performs better; you can then ditch the loser, keep the winner, and analyze the results so you can use those insights to create better ads in the future. From there, you’ll need to continuously rotate in new ad varieties. This way, you can keep pushing your Google Ads campaign to perform better while improving your overall results at the same time.
  • Avoid ad cannibalization. High Quality Scores require strategic focus, so avoid ad cannibalization; in other words, don’t have multiple ads competing with each other for digital real estate. Each ad should be perfectly optimized for a unique niche to maximize relevance; if another, less relevant ad could also appear for a similar hypothetical search, it could compromise your results.
  • Optimize your landing pages for target keywords. It’s tempting to spend all your efforts on ad optimization, but your landing pages need love too. Make sure your landing pages are optimized for specific long tail keywords and user intents – and create new, original landing pages if necessary. If you have only one landing page for all your different ad campaigns, it’s a bad sign; you’re much better off with hyper-specifically targeted pages that match user intent and boost ad rank.
  • Pay close attention to landing page behavior (and take action). Landing page optimization is about more than just ensuring keyword relevance. It’s also about improving user behavior metrics – which can boost your conversion rate at the same time. If your landing page has a high bounce rate or a disappointing dwell time, analyze the page to try and figure out why. Is the content misaligned with user search intent? Is the content lackluster or missing something? Are there insufficient visuals or trust signals? You can split test and rotate your landing pages just like you do with ads to improve your position on the search engine results page.
  • Carefully lower your max bids. Lowering your maximum bids can set you up for a lower cost per click as well, but you need to exercise caution. If you lower your maximum bids too much or too quickly, you could end up with a lower position and worse overall result. Your best bet is to lower your bidding strategy slowly and incrementally so you can find the sweet spot for cost and performance.
  • Pause ads with high cost to conversion ratios. Sort your Google AdWords keywords by cost, then filter by conversions so you can compare the cost and conversion of each advertising opportunity. Find the ads with the highest cost to conversion ratios and consider pausing them. You can spend more money and energy on ads with a lower relative cost basis. Optimize this enough, and you’ll end up with highly cost-efficient ads across your campaigns.
  • Keep introducing new keywords. Never stop experimenting. It’s tempting to stick with the keywords you understand best, but you’ll see better results if you keep introducing new keywords and tinkering with new strategies. You’ll better understand your demographics, flesh out your ad portfolio, and iteratively push your Quality Score higher.
  • Look into other variables. There are many secondary and tertiary variables that can influence user behavior in response to your Google Ads campaign, so take them into consideration. Users may behave differently based on the device they’re using, their location, the ad schedule, the time of day in which they see the ad, and other factors. Google asserts that these variables don’t directly influence your Quality Score, but they may have an indirect impact; even if this impact is negligible, these variables are worth considering to improve the performance of your ad campaigns and landing pages.
  • Check your Quality Score regularly. In your Google Ads account, head to the Keywords section of the left menu. In the upper right corner, click the columns icon, then open the Quality Score section under “Modify columns for keywords.” Here, you can find all your ad rank data. Be sure to check your scores regularly so you can analyze your momentum, determine whether your tactics are working, and brainstorm future strategic decisions.

Avoid the Competition

Avoid the Competition

Let’s say you’ve maxed out your Quality Score and you’re still not satisfied with your CPC.

What can you do?

A secondary option is to avoid high-demand niches and limit your competition.

Apart from strategic business decisions (like a full pivot), these are your best tactics here:

  • Know your top competitors. Your first job is to know who your top competitors are and analyze the threat they pose. Who are the top rivals in your industry, how aggressively are they advertising, and do they seem to have an adversarial or aggressive approach? Are there any areas of weakness that you could exploit? Are there platforms they aren’t using or keywords they aren’t targeting at all?
  • Use multiple platforms and networks. Google is (understandably) the top dog in the PPC advertising world, but Bing is better in many cases. One of the critical advantages that Bing has is a lower average CPC. The reach may not be as broad, but the cost basis is attractive, and if conversions are your bottom line, tapping into the power of Bing is a no brainer. Of course, Bing isn’t the only alternative platform to Google; you can also consider any number of social media platforms and other ad networks relevant to your brand.
  • Use both high-funnel and low-funnel strategies. Sometimes, you can lower your average CPC and see better results by shifting up or down in the sales funnel. If all your competitors are clamoring for attractive, immediately valuable low-funnel users, consider targeting neglected high-funnel users. In other words, target customers who are still in the earliest phases of the buying decision making process. Just keep in mind that users in different stages of the sales funnel are going to require different ad and landing page optimizations.
  • Target unique demographics. Finally, consider targeting unique demographics. You may be able to avoid or minimize your competition by, say, targeting users in a different geographic location, users in different age groups, or users with different behavioral patterns. To be truly effective here, you’ll likely need to experiment – and there’s no guarantee your “alternative” demographics will be as valuable as your primary targets.

Do you want to lower your overall CPC?

Do you find yourself hoping for a more cost effective, higher-ROI PPC campaign?

Are you unsure where to start?

PPC.co has the experts who can help – so contact us for a free consultation today!

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