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PPC Agency Blog

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
How to Use Video Ads to Build Trust
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?
How To Estimate Conversions In Google Ads
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
13 Tips for Optimizing Paid Search Campaigns
Why Aren’t My Google Ads Showing & What to Do About it
PPC for Accountants & CPAs: A Beginner’s Guide
8 Reasons to Bid on Branded Keywords in PPC
PPC Automation Tools for Scaling Campaigns
SEO vs. PPC: 21 Best Practices for Organic & Paid Marketing
When to Increase Your Bid in PPC (Pay Per Click)
Branded Search: Why Branded Searches Give the Best Conversions
How to Create Your Own PPC Project Checklist for Optimizing Time Management
5 Reasons to Use Dynamic Keyword Insertions in Google Ads
11 Effective Pop Up Ad Strategies in Paid Marketing
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
How to Manage Low Volume Keywords in Your Google Ads

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Samuel Edwards
|
December 14, 2024
How To Estimate Conversions In Google Ads

If you are new to Google Ads, rest assured that you’ve chosen the right PPC ad platform for your business.

Going by leading PPC marketing KPIs, Google Ads offers some of the highest conversion Value and ROI.

Still, it is important to truly understand what you are getting into before spending/ad spend significant amounts of money and time on a Google Ads strategy.

It takes much work to get best results that can be studied and analyzed to tweak the process for better outcomes.

An essential part of this endeavor is to estimate, track and dramatically improve conversions.

A conversion value is any action taken by a user at your behest. For example, they request a demo, sign up for a trial, buy something or submit their emails because that’s what you drive them to do.

This article will discuss the right way to estimate conversions in Google Ads.

But before that, let’s get familiar with the basics.

Paid Advertising – Growing Your Business Digitally

Paid marketing is one of the easiest ways to let your prospects discover your products, service, or business through digital advertisements on the SERPs.

Pay-Per-Click (PPC) or Pay-Per-View (PPV) options allow businesses to purchase ads that are great at targeting the right audiences. Since it is an inorganic way of getting credibility, ranking, and ad traffic for your business site, it reaches your audience on a priority basis so that you don’t have to wait for your customer to find you through the search engine. Your website or product advertisement will pop up on the SERPs as soon as a related query is entered.

consumers prefer personalized ads

Google ads work because more than 70 percent of users prefer to see ads personalized according to their interests. In addition to that, over 65 percent of searchers have no qualms about clicking on paid ads. That’s why smart PPC campaigns focus on people who are actively looking to buy and not merely researching a product or service.

As businesses continue to battle for rankings, conversion value, automation, and personalization, the stats clearly show that paid marketing technique is the quickest way to go!

How Do Paid Ads Work?

Paid marketing includes the display of ads on SERPs (search engine results pages) like Google and Bing and social media channels (like Facebook).

Businesses and marketers select a medium for advertisement –i.e., Google Ads or Facebook. Then they define their targeted audience on the web. This audience is categorized by demographics, preferences, age, location, search entries, previous purchases, and pages visited.

The method is commonly known as PPC (Pay-Per-Click). This means the advertiser has to pay for each click on their advertisements. To place an ad for the SERPs, a business must pay a certain amount; once the payment is made, the ad campaign goes live. Your ad starts to display on the SERPs whenever a related term or keyword is entered into the search bar on Google.

Now that you know all about paid ads and how they work, here is how Google Ads work and what it offers to track more conversions and estimate the total conversions.

Google Ads and Conversion Tracking

Google AdWords and dramatically improve cost per

Google AdWord’s, now known as Google Ads, allows marketers to create ads and run them on the Google search engine to reach their audience. It works for PPC pay-per-click advertising, where you have to pay for every click your visitors click.

The rate-per-click is always varying; depending on several/many factors, marketers only have to set their budget for their campaign. The ads remain live until their budget ends, and it ends when the entire amount is used up.

Google Ads is a robust program, and it gets even more potent with every update. Since it has been improvising with the latest technology and AI, it also allows you to track your conversions. It is the only medium for creating highly profitable Google Ads and tracking conversions.

The fantastic conversion trackings feature of the program allows you to post and track the ad metric in the most simplified form. It offers various data for the business to optimize their next ads according to the data retrieved from a previous ad campaign.

One thing that plays a significant role in PPC ads is conversions. Without Google Ads and its conversion trackings installed, you will never know how many clicks you got each day or from each ad campaign. Also, it will tell you how many clicks resulted in leads, sales, and so much more. You can use this information to optimize your next campaign with utmost perfection.

Benefits Of Conversion Tracking and Estimation

When running a PPC campaign, businesses need to track and estimate their conversions after each movement. Here is why:

  1. It provides you actionable insights on what works for your business or product and what doesn’t.
  2. Little optimization of content and targets in the next campaign would increase the ROIs.
  3. It allows you to experiment with new things based on conversion value metrics and consumer behavior.
  4. Metrics help you refine your targets and reduce your PPC campaign cost per.
  5. It helps you optimize your ad text, keywords, and bids accordingly.

How To Estimate Conversions With Google Ads

Ever since the industries have started to grow with digitalization, Google has been trying to bridge the gap between businesses and their goals with intelligent data and insights. When it comes to conversions with Google tools, Google has all the knowledge of the universe. Also, with the innovating AI and machine learning Google has become even more powerful and more intelligent over time.

Thus, working with Google tools is getting intellectual data from the entire population of the world. It records all the user behavior history and so much more. This data comes into play when you place the ads with the targeted audience and reap the result without any effort. It also offers smart tracking tools for paid ads, which helps estimate the conversions a business gets from each paid campaign.

Since all of our devices are linked with Google and have Google accounts logged in, it can access all your information from your credentials to your location. Considering the power it has, clicks are just a minor thing, which Google can easily track. This is how it gathers all the conversions that happen. Even if you open an ad through your mobile browser but make the purchase from a desktop, Google will know it!

Install The Conversion Tracking Tool

This is where the conversion trackings tool comes into play. We went over numerous things to emphasize the importance of the tool and how it helps you determine the estimated rate of conversions. Once you run the ad, you can get to know about each click, lead, conversion value or sale, based on your own criteria of conversions.

To better utilize the conversion trackings tool, you need to understand each of the above things in this article. Then decide on the actions that you count as a conversion. Whether it is when someone visits your website, call you, sign up for a newsletter, call you, and fill out an online survey or when someone contacts you online.

Here are the three sources you can use to identify your conversion value criteria:

  1. Cross-device conversions
  2. Webpage conversions
  3. Call on-site conversions
  4. App download conversions

Measuring And Estimating Different Types Of Google Ads Conversion

Estimating conversions today,ad traffic,past performance and ad spend

Estimating conversions today is easier than ever before. Here is how you can do it with Google Ads resources:

Cross-device Conversions

Cross-device conversions are noted as a user clicks an ad on one device but completes the conversion value on another. You can use the insights extracted from Google Analytics based on user data.

This data comes from users who have either signed in to their Google analytics accounts and/or have their ad personalization feature turned on.

Google Ads exports this cross-device and same-device data from analytics to Google Ads campaigns and shows it to you through the conversion trackings tool. Later on, you can use this data for your PPC bidding. However, to automate the conversion exports (even with AI) to Google Ads, you can Activate Google Signals and Import the Analytics in Google Ads.

Webpage Conversions

To track the webpage conversions, you need to add a conversion trackings tag to your website. This tag will gather all the insights of the click-through rate. It will track the activity on your ad and the website and let you know if someone clicked on your ad and visited your website. Also, it follows the activity of the users when they visit your website and complete a conversion value action.

These conversion actions may include purchase, sign-up, contact information form, call, reaching out to the support for further assistance, or anything you list as valuable.

However, this only happens when you create a website conversion actions in your Google Ads account, you’ll get a conversion trackings tag to add to your website. Also, you will need to identify a conversion value page on your website, which can be a thank you page, after a completed action.

Call 0n-Site Conversions

This resource helps you track the CTA usage that involves a call on a number mentioned on your business website.

You can use Google Analytics/Phone Analytics and reporting to enable the instant tracking of website call conversions. By doing this, you will be able to access insights when someone uses your on-site number to call you after clicking any of your ads.

This feature will help you track ad leads generated by phone calls to your website number.

These phone call conversion action will help you see how efficacy your ads lead to phone call conversions. Since the number is linked to your website and the ads, you will be able to track all the leads through conversion action tracking.

Also, you with this source, you can analyze the keywords, ad groups, ad, and campaigns that lead to more call conversions.

For setting up call conversion actions, you will need a Google Ads account, a conversion actions, and the addition of the conversion action tag to your business website.

Mobile Apps Conversions

If you use Google Ads to promote mobile apps, you can use Google Ads’ conversion trackings tool for download tracking. It will help you how many downloads do your ads lead to.

The tool will track when your ads are clicked, leading to app installations and in-app activity. However, due to the difference in OS, iOS tracking might be impacted. So using Google Analytics is essential. You would also need to keep track of the apple framework’s updates to ensure maximum conversion trackings.

You can track mobile app conversions with Firebase or import mobile app conversions from a third-party app like analytics tools or Google Analytics.

You can track various types of mobile app conversions, including:

  • Application installations
  • Downloads from Google Play
  • Opening of an app after clicking an ad
  • In-app actions (billings, purchases, etc.)

Key Take Away

Google Ads is a powerful tool that enables you to run paid ad campaigns and offers insights through Google Analytics, gathered all in one place. Also, it allows you to analyze the different rates of conversion through all mediums that display your paid ad campaign.

However, if you are still wondering the right formula to estimate the total conversions, here it goes:

You only need to track and conclude all of the conversion mentioned above sources with the help of Google Ads. And then, you need to add them all to estimate the total conversions.

Estimated Total Conversions = Current Online Conversions + Cross-Device Conversions + Website Conversions + On-site call conversions.

Given the fact, these complexities can lead you to a massive fiasco if you set up a PPC campaign based on inaccurate data and insights. Thus, analyzing and estimating your total conversions is critical for a business and its budget. However, if you need to run a Paid Ads campaign, you must seek the help of a professional to avoid any financial damage.

‍

Samuel Edwards
|
December 14, 2024
eCommerce PPC Strategies for Maximum Sales Growth

Succeeding in eCommerce PPC doesn’t merely involve selling quality products.

True, that’s critical (you won’t have many loyal customers if your products don’t offer actual value, after all), but it’s not the only way you can boost sales.

In a competitive marketplace, you need to stand out in the crowd by running pay-per-click ad campaigns through Google Or PPC ads and Amazon.

You also need to apply tested strategies that align with user behavior.

Consider the following examples.

If you’re trying to grow an eCommerce business with a PPC advertising campaign, these tips will help you achieve your goals.

Take Advantage of Google Shopping Ads

Take Advantage of Google Shopping Ads

Let’s get the obvious tactics out of the way first! Different types of Google Shopping ads offer different features and serve different purposes. Google Shopping Ads allow you to showcase your products and directly encourage users to purchase them. They also have a relatively strong chance of showing up as sponsored links when users perform relevant Google searches. Naturally, they’re ideal for eCommerce PPC.

Prepare for Seasonal Trends

Depending on the nature of your business, some of your products may be more popular among customers during specific times of the year. For example, if you’re a digital marketing /PPC marketing apparel brand, you shouldn’t expect your winter coats to typically sell best in summer.

That’s a basic example. The main point to keep in mind, though, is that you want to be prepared to leverage seasonal trends instead of scrambling to make seasonally-appropriate Google Shopping ads at the last minute. That means even when it’s not winter, you should be developing Google Shopping ads for the products that sell best in winter. You can always make minor changes later before publishing them.

Use Negative Keywords

Use Negative Keywords

Most marketers understand the value of using the right keywords when designing PPC ads/PPC advertising for Google. However, while including the “right” keywords in your descriptions and ad copy is important, it’s also smart to specify any negative keyword’s you wish to associate with your ad.

Negative keyword’s help you boost sales by telling Google’s algorithm what you’re not offering. This minimizes the chances of users with little interest in your products seeing your ads, thus allowing you to optimize your paid search budget.

For example, maybe you’re selling physical desk calendars. As such, your target audience doesn’t consist of people looking for online or downloadable calendars. Make sure you’re not wasting money advertising to them by including “online calendars” and similar terms in your list of negative keyword’s.

That said, you should keep in mind that just as making a list of keywords involves some trial and error, so does deciding which negative keywords to specify when creating ads. Monitor your eCommerce PPC campaigns’ performance regularly and update your list of negative keywords whenever you come up with new ideas.

Create Ads Specifically for Mobile Devices

With each year, it becomes increasingly common for online shoppers to browse eCommerce sites and make purchases via mobile devices. Remember this when designing your ads. At least some of your PPC ads/PPC advertising should be designed specifically for customers shopping on smartphones and small tablets.

There are various ways you can incorporate mobile-friendly elements into your ad designs. The specific choices you make will at least to some degree depend on what you’re selling. In general, ads that are designed to look impressive and clean on mobile devices strike a balance between catching a user’s attention with vibrant imagery without overwhelming them. For example, an ad featuring a large chunk of text may be somewhat difficult to read on a small mobile screen. Mobile-friendly ads should instead be designed to convey essential information efficiently and clearly. As always, you should also A/B test different ads to get a better sense of which yield higher levels of engagement with mobile device users.

Mention Any Money-Saving Options

You may already appreciate the importance of creating PPC ads/PPC advertising to highlight sales when you plan on running them. A general rule of thumb that tends to hold true states that when potential customers are told they can save money if they act fast, they’re more inclined to make purchases.

However, along with buying items when they’re on sale, your customers may be able to save money in various other ways when buying your products. Perhaps if they spend a certain amount of money they’re rewarded with a discount. Maybe you offer discounts to users when they sign up for your email list. Or, you might have a customer loyalty program that allows repeat customers to save money.

When planning eCommerce PPC campaigns, review the products you’re selling and make a list of any promotions, discounts, and other such money-saving options that may be associated with said products. Whenever it makes sense to do so, touch on these money-saving opportunities in your ads. You’ll likely find that sales increase accordingly.

Additionally, even when an item isn’t necessarily available at a discounted price, it’s still often smart to mention its price in the title of an ad anyway. While this isn’t a universal rule, as there are instances when mentioning the price in the main ad copy may feel forced, in many instances it’s wise to let a potential customer know how much you’re charging for a product right away.

Use Dynamic Remarketing

Use Dynamic Remarketing

The fact that a lead considered buying one of your products but ended up not actually making a purchase doesn’t always mean they’ve decided for good that they’re not interested in buying a product. There are many, many reasons online shoppers don’t make purchases right away when browsing items. Often, they’re simply distracted. When they click away from a product page, they might tell themselves they’ll complete a purchase later, only to forget to actually do so.

Luckily, these potential sales are by no means lost forever. You can use Google’s Dynamic Remarketing features to show relevant PPC ads/PPC advertising to users who engaged with your brand or products in the past when they visit sites within the Google Display Network. This is an easy but effective way to improve your ROI.

Segment Your Audience (Again)

Segmenting your audience and creating different types of Google ads to appeal to different types of customers is one of the most well-known ways to improve a PPC ad campaign. That said, some eCommerce PPC marketers make the mistake of only segmenting their audiences once, then never returning to make adjustments based on what they’ve learned from their eCommerce PPC campaigns.

This deprives them of an opportunity to squeeze more profit out of their ads! When you monitor your PPC campaigns performance, consider if you can glean any new insights regarding audience tastes, behaviors, and other such factors in order to segment your audience even more effectively.

For example, after reviewing a PPC campaigns performance, you might find that leads who live in one particular city respond (whether positively or negatively) differently to certain PPC ads/PPC advertising when compared to those from a different city. If this was a behavior you hadn’t predicted when first segmenting your audience, now that you’re aware of it, you can segment your audience even further to boost sales.

Keep Creating

Another mistake that’s too common in digital marketing/PPC marketing? Only creating new Google ads when you “need” them.

For instance, you’re well aware of the fact that you should create new Google ads when promoting new products, when running sales, and when your existing Google ads are stale and simply need to be refreshed. However, it’s worth remembering that there is no such thing as a truly “perfect” ad. Even if you’re not completely sure how right now, it’s almost certain that each and every one of your ads could be improved upon in various ways.

Constantly creating new Google ads should be one of your top priorities. True, you can’t devote all your time to generating ads, as doing so will prevent you from focusing on other important business tasks, but you should probably focus on creating new ad content when you have the time to do so more than you currently are.

Creating new Google ads naturally gives you more chances to test them. The more ad variants you test, the more you’ll learn about which strategies are most effective. That said, even when you aren’t actively running all the news ads you’ve recently generated, consistently engaging in the ad generation process will ensure those creative muscles remain strong.

Additionally, it’s helpful for very practical reasons to have a large number of Google ads available on the backburner. When you reach a point where it is necessary to incorporate new Google ads into your PPC campaigns, you’ll already have plenty of unused content to experiment with.

Make the Purchasing Process Easy & Direct

The Internet is brimming with potential distractions. Again, the list of distractions that could prevent an otherwise interested lead from making a purchase is extremely long. When a potential customer clicks on one of your ads, you typically have a very limited amount of time to make a sale.

Keep this in mind when reviewing your current PPC ads/PPC advertising and generating new ones. Your ads should send leads directly to a product page (or other page from which they can easily make a purchase) right away. If there are too many steps between the point when someone clicks on an ad and the point where a purchase is complete, you’re losing out on sales.

Avoid Certain Keywords

Researching your competitors’ keywords and using them in your own PPC ads (when it makes sense to do so) is generally a smart online advertising strategy. That said, there are certain keywords the competition may be using that you should not incorporate: branded keywords.

It may be tempting to use a competitor’s branded keywords in your PPC ads not because you want to deceive a potential customer by making them think you’re selling another brand’s products, but simply because you want to target customers who are interested in brands similar to your own. For instance, maybe you’re selling a more affordable alternative to a popular product, and you want to let potential customers know about how much money they could be saving if they bought an item from your brand instead of the competition.

The problem is, branded keywords tend to only be valuable when used with the relevant brand’s ads. The attention your PPC ads receive when you rely on the competition’s branded keywords will primarily come from low value leads who are probably already planning on buying an item from their chosen brand. You’ll have little success convincing them to buy your products instead.

Properly incorporating branded keywords into your PPC ads in a way that’s ethical is also, well, hard. Even if your intentions aren’t malicious, if a competitor finds you’re using their branded keywords excessively in your own ads, they can complain to Google or any other advertising platform you’re using. The consequences may include account suspension, cease and desist orders, and more.

Highlight Customer Reviews

Highlight Customer Reviews

Some classic eCommerce PPC tips will always be relevant. Some grow even more relevant over time.

For example, today’s online shoppers tend to be very savvy when it comes to their understanding of advertising tactics. Your potential customers know that just because you’re describing your products in a way that makes them sound desirable and valuable, that doesn’t necessarily mean your own description can be trusted.

Surveys often reveal that online shoppers are increasingly prioritizing customer reviews when determining whether to buy products. They may not trust a company to honestly describe a product’s benefits, but they trust other customers.

You can appeal to that trust by including language from real customers reviews in your ads. You don’t need to do so with every single ad you create, but you should highlight customer reviews at least to some degree from time to time.

However, while these tips absolutely will improve the effectiveness of your eCommerce PPC advertising campaigns now, remember that best practices are always evolving and changing.

You need to ensure the success of your eCommerce business by continuing to read blogs like this one. Staying on top of the latest best practices is one of the simplest yet smartest ways to remain competitive.

‍

Samuel Edwards
|
December 14, 2024
What Is ROAS? Complete Guide To Return-On-Ad-Spend For PPC

As global digitization accelerates, organizations realize the impending need to invest in digital advertising.

In 2018, the total national ad spend exceeded $125 billion – and it is predicted to continue to rise YOY:

Return on advertising spending (ROAS) per dollar invested in the United States

With rising expenditure comes increased scrutiny.

With cutthroat competition, not every ad campaign can drive conversions and offer adequate ROI.

So, how do you know if the money you’re investing is generating revenue or not?

This is where ROAS comes in.

ROAS, or return on ad spend, is a metric for online advertisers, enabling them to track the money they make.

By calculating ROAS, you will know how many dollars you earn for each dollar spent. Additionally, it will determine which ad strategies and techniques work well so that you can apply those to your other ad campaigns.

Difference Between ROAS And ROI

ROI, or return on investment, is a business-centric metric used to evaluate the effectiveness of your marketing efforts as a whole.

It helps you understand how ads are contributing to your overall business finances and profit.

On the other hand, ROAS assesses the performance of specific campaigns, ad groups, or keywords.

As it focuses on individual advertising campaigns, ROAS is an ad-centric metric. It measures the gross revenue generated based on each dollar spent on ads. This way, you can learn which of your paid ad campaigns are useful and which ones you need to stop pouring money into.

How To Calculate Your ROAS?

To calculate ROAS for Pay-Per-Click (PPC) ads, you need to know the total PPC revenue generated by your ad strategy and the total cost of managing your ad strategy.

This includes revenue you earn from all different sources, such as product purchases and lead conversions.

Similarly, your cost includes all the expenses you incur when running your ads, such as Cost-Per-Click (CPC), management fees, software upgrades, and partner/vendor costs. Additionally, if you have purchased clicks and impressions, they will add to your expenses.

Now that you have these two figures, you just have to plug them into the ROAS formula.

There are two formulas you can use:

Formula 1

Divide the revenue you made from your ad campaign with the amount you spent to run your ad.

ROAS Formula

So, for example, you spend $200 on a PPC campaign and make $400 in return. Adding these values to the formula will give you a ROAS of $2. This means you’re making $2 for every $1 you spend.

However, calculating ROAS through this formula only gives you a general overview. It doesn’t tell you the overall profitability of your campaign.

So, for example, you spend $200 and make $400. But your vendor fees also cost $50. Then, the ROAS you calculate will not accurately depict the return you get.

For this reason, it’s better to use the second formula.

Formula 2

If you subtract your cost from the revenue before dividing the result by the cost, it will give you an adequate ROAS.

ROAS Another Formula

This formula doesn’t require you to evaluate any new values since it only needs the total revenue and cost. And plugging values in this formula will help you determine your marketing budgets effectively.

How To Track Your ROAS

How To Track Your ROAS

ROAS is a metric that needs to be tracked regularly. Ideally, you should track your ROAS throughout the ad campaign instead of at one particular time.

Although there are many indicators you can utilize to assess the success of your marketing campaigns, the end goal of your business is to earn more money.

This means tracking conversions and sales isn’t enough on its own; you need to fit them within your ROAS tracking mechanism.

But first, you need to calculate your revenue. And you can do it by following the two steps below.

Tracking Conversions

The first step is to track your conversions. And you can easily do that on online advertising platforms like Google Ads, Facebook, Twitter, and Bing Ads.

All you need to do is use these platforms to set up an ad campaign and conversion tracking. If you’re using Google Ads, you can even track phone call conversions.

This way, you will know which clicks on your PPC ads led to which purchases. In addition, you will stay updated on your conversion rates and purchases that result from ad clicks.

Tracking Sales

The next step is to connect your online advertising platform to customer relationship management (CRM) software.

By doing this, you can tie all your marketing data to a new lead. Hence, when a lead converts into a customer, you’ll know exactly which marketing efforts led to the sale.

So, by tracking your conversions and sales, you get access to your revenue data. Simultaneously, the advertising software you use will detail your ad spend.

Now, all you need to do is plug the values in any of the two ROAS formulas, and you’ll know whether your money is being spent right or not.

Why Is Calculating ROAS Important For Businesses?

ROAS enables you to gather valuable insights – based on which you can make informed marketing decisions.

Since the final goal of advertising is to make money, calculating ROAS should be a priority. Even though conversion rate and click-through rates are essential, they don’t guide you regarding changes to your advertising model.

In addition, knowing your ROAS can help you do the following:

  • Get accurate data for supporting ad spend increases and budget changes
  • Determine high-performing ad groups, PPC campaigns, and keywords
  • Procure a benchmark average, which you can measure all your future calculations against

How Does ROAS Data Fill The Gaps In Your Marketing Insights?

Using other metrics alone will not give you complete insights, so you will not make informed marketing decisions.

Think about click data – it tells you the best click-through rate (CTR) and the lowest cost-per-click (CPC). So based on this data, you might think you can evaluate which of your campaigns are successful. But that’s not possible because CTR and CPC don’t tell you the quality of clicks and the traffic you’re getting.

Similarly, conversion data helps you track conversions and point out areas of weakness in your strategy. But it will not determine the quality of traffic and leads you are receiving.

However, ROAS ties all these metrics together by providing you with actual numbers you’re earning and spending on each channel.

Additionally, various factors result in a lower CPC or conversion rate, but that doesn’t mean your campaign is unsuccessful. In fact, such campaigns can still have high profitability. But if you don’t calculate ROAS, you won’t know that.

And then you will make decisions that will cost more than you gain.

What Is A Good ROAS Target

A good ROAS target depends on many factors, including your industry, average CPC, and profit margins. This means a satisfactory ROAS varies from business to business.

In addition, a good ROAS differs from campaign to campaign. For instance, campaigns that aim to raise awareness, grow subscriptions and build a following generally have a low ROAS.

But if you want to drive a greater number of conversions and sales, you should expect a higher ROAS.

Still, no general rule can determine how high your ROAS should be. But, most businesses do aim for an overall 4:1 ratio.

Getting $4 for every $1 spent gives you enough money to keep your business afloat or even make a profit.

Here is a breakdown of different ROAS targets you should be aiming for at different phases of your business:

1x ROAS

Most businesses think if they make a sale that amounts as much as they spent on marketing, they will break even.

But that’s not true because when you factor in all your variable and fixed costs, you are likely making a loss.

So, making $1 for each dollar you spend on your PPC ad campaign is not enough.

2x ROAS

Let’s say you spend $100 on marketing and make a $200 sale. It means you are earning $2 for every dollar you spend.

But, 2x ROAS is still low because fixed costs are generally high, resulting in a deficit.

3x ROAS

As long as you get some consistent sales, you can break even with a 3x ROAS.

For example, you spend $50 on marketing, which results in a $150 sale. So, now, you have an added $100, which you can use to cover additional ad-running costs.

4x ROAS

4:1 ROAS is where you start making a profit, which is why most businesses aim for at least a 4x ROAS.

When each dollar spent gives you $4 in return, you have enough money to make a profit. But ultimately, that depends on your business model and costs.

So, if you have very high variable and fixed costs, it may not result in a profit. But that is often not the case.

5x ROAS

With a 5x ROAS, you can start using your marketing practices to grow your business.

At this stage, you’re making enough profit that you can afford to invest more in your marketing and customize various goal-specific ad campaigns.

In the end, the ideal ROAS for your business depends on your ROAS targets, business expenses, and marketing goals.

Also, if you have different PPC campaigns running simultaneously, set separate ROAS targets for each. Then, calculate their ROAS individually to see if they are bringing in enough cash.

But if your ROAS is still low, look into all other metrics and practices to identify the reasons behind it. Then, when you know which strategies are working, you can implement those across other campaigns.

How Can You Improve Your ROAS?

How Can You Improve Your ROAS?

Not being able to meet your ROAS target can be frustrating. But a low ROAS doesn’t always mean that your campaign is a complete failure.

Sometimes, you can make small changes to your current campaign to increase ROAS.

Some tweaks you can make are:

Experiment With Ad Placement

Placing an ad at the right location is key to attracting quality traffic. So if you have a low ROAS, consider changing the location of your ads.

For example, try placing them on e-commerce sites or social networking sites. Additionally, you can change the layout for your ad, such as converting a banner ad with a pop-up.

Create SEO Optimized Copy

Your ad copy should gauge the user’s attention, resulting in the maximum number of ad clicks.

Similarly, your ad copy should be optimized for SEO so that your ad can show up organically in search results.

A helpful tip to follow is to use specific, long-tail keywords that are relevant to your brand.

For more detail, please visit our post outlining and weighing the difference between SEO and PPC.

Target Mobile Marketing

Targeting 56.16% of all web traffic that comes through mobile phones can boost your ROAS.

If your advertising campaign is limited to desktops and isn’t generating high revenue, you should consider running mobile ads.

Set A Budget Cap

Use your ROAS to eliminate campaigns that are performing extremely poorly. Instead, use that money and effort on campaigns that show growth potential.

At the same time, try not to get carried away with spending on ad campaigns. So, place a cap on your budget for PPC campaigns because lots of click-throughs are only beneficial if your budget supports them.

In Conclusion

Return on ad spend (ROAS) is a valuable metric that businesses of all sizes can use. And it helps you allocate adequate budgets for numerous ad campaigns.

Globally, 31% of all online users click on ads, which means investing in online advertising has a good chance of increasing leads. But to make the most of your marketing efforts, you need to strategize accordingly.

By regularly tracking your ROAS, you will make informed, data-driven decisions that will eventually boost your revenue.

‍

Samuel Edwards
|
December 14, 2024
How to Scale Your PPC Campaigns

Pay-per-click (PPC) campaigns operate much differently than SEO campaigns.

While you expect SEO campaigns to take their time to bear fruit, PPC(Pay Per Click) campaigns are expected to produce almost immediate results.

SEO campaigns are easy to scale, depending on the type of effort you put in.

PPC campaigns can spiral out of control and take your PPC budget with it if you don’t properly manage them.

When the time comes when your campaign is successful, you’ll need to explore ways to scale it and make every dollar count.

However, scaling your PPC is a concentrated effort.

To accomplish this task, this guide will teach you all you need to know about growing your campaign to new heights.

Questions to Ask Before Scaling Your PPC Campaign

Before you decide to scale your PPC (Pay per click )campaign, it’s important to make sure that everything is in working order.

Also, you need to be sure whether or not scaling your campaign is the best choice for your business moving forward.

Below are some essential questions you should ask and answer before growing your Pay per click campaign.

Is Your Website Built Properly?

Is Your Website Built Properly

One of the most common causes of PPC(Pay Per Click) campaign failures is that the landing page or website hasn’t been built. It can be frustrating to spend hundreds and even thousands of dollars every month, achieve impressions and clicks on your ads, only for them to visit your website and leave.

PPC campaigns are only a means to an end. This means that your website or landing page needs to actually work properly before continuing with your campaign. To make sure your website is working and heighten your campaign’s conversion rate, here are the following steps you should take:

  • Perform a Website Audit — A website audit is a key SEO diagnostic tool that points out critical issues with your site, while offering helpful recommendations for improving. This test will help you uncover areas where your website is falling short.
  • Optimize Your Social Media Profiles — If you plan on advertising on social media, make sure that your profiles are correctly optimized with your business information.
  • Maintain Mobile Responsiveness — Make sure that your website is completely mobile-friendly. This can have severe repercussions on how customers will view and experience your website.

Did You Setup Google Analytics to Track Conversions?

You wouldn’t believe how many PPC campaigns aren’t configured with Google Analytics. Some forget to install this feature, and others figure it’s not very important. Nonetheless, Google Analytics is instrumental in tracking conversions down your sales funnel.

With Google Analytics, you can find out the exact keywords customers are using to find an ad. You can also check on important SEO benchmarks such as dwell time (average session time), bounce rate, and more.

Google Analytics is most important in observing how leads react to your website when they’re away from your ads. This is the type of information you won’t find on Google or Facebook Ads.

Invest in a CRM Platform

When you run an eCommerce store, dealing with B2C clients, there’s no need for investing in a customer relationship management (CRM) platform. After all, people are going to click on your ad, visit your store, buy, and leave.

When you’re targeting B2B clients, you have to groom them before they’re ready to buy. Before you scale your campaign, you have to make sure that your business is ready to deal with a sudden influx of new prospects.

Thus, be sure to research and invest in a premium CRM platform that aligns with your business’ needs.

How to Scale Your PPC Campaigns: 10 Easy Steps

Once you’ve made the decision to begin scaling your PPC campaign, it’s time to put in the work to make your changes happen. By following these 10 convenient steps, you can begin the process of growing your PPC campaigns.

Invest in a Dynamic Landing Page:

If you haven’t done so already, invest sufficient resources into creating a landing page that can visibly attract prospects delivered from your paid ads and convert them into paying customers.

Landing pages are the most important aspect of any PPC campaign, as they are responsible for improving conversions. Therefore, it’s in your best interest to hire a proficient copywriter and UX designer to ensure that your landing page design is a success.

When your landing page is complete, conduct regular A/B tests and perform tweaks to make sure that it will perform it’s best over time.

Increase Your Budget:

This may seem obvious, but increasing your ad budget is one of the most sure-fire ways of scaling your PPC campaign. The more you’re willing to spend on PPC ads, the more placements you can earn on the internet and social media.

Let’s say that your competitor is spending $1,000 a month on Google Ads. If you’re not prepared to match or exceed their investment, then you can’t expect to achieve similar results.

Granted, you can achieve remarkable results with any reasonable ad budget if you’re creative enough. But, if your competitors are allocating more money towards foundational keywords that are bringing in vast amounts of traffic, then you’re always going to be at a disadvantage.

As a result, make the decision to increase your budget at a rate that’s financially feasible for your business.

Try Remarketing:

A lot of businesses spend a lot of time, effort, and money targeting new prospects. Depending on your industry, some people may not be interested in learning more about a product outright.

After all, paid ads aren’t really considered to be an inbound marketing strategy. You’re essentially paying for your ads to be placed in front of a person if they type in a familiar keyword.

This doesn’t mean that the person is automatically interested in buying a product or service. For this reason, you need a contingency plan to subliminally keep your business in the minds of prospects who aren’t yet ready to convert.

Remarketing in PPC campaigns helps you to achieve this. Google Ads allows you to structure existing campaigns to retarget people who have viewed your ads and are on different websites:

Remarketing in PPC campaigns

This allows advertisers to use an internet user’s cookies to send ads even when people are on completely different websites:

Moving Ad

Remarketing adds a “moving ad” effect to a PPC campaign. No matter where a prospect goes online, your ads can follow. Be sure to create a cookie policy to stay GDPR compliant and respect your audience’s privacy.

Create Different Ad Groups:

If you’re going to scale your PPC campaigns, chances are that you plan to advertise several more products and services your business offers. The problem is that you can’t group all of these potential ads together.

This makes it very difficult to track results and measure your campaign’s ROI.

When scaling your PPC campaign, you’ll need to create distinct ad groups for different products and services.

For example, let’s say that you sell home security equipment. If you’re planning on advertising both home security cameras and alarm systems, then it’s best to place these products in different groups.

Why? Both of these products are very similar.

The reason is because when you separate different products and services into distinct ad groups, you make it easier to target hyper-specific keywords. This way, you can not only create keyword-rich ad copy, but you can develop ads that are just what your audience is looking for.

Analyze Keyword Demand:

When designing a PPC campaign, it can be tempting to just target the low-hanging fruit. After all, there’s no harm in bidding for low-cost keywords that can net minimal traffic for your website or landing page.

The problem is that all traffic isn’t good traffic. Just because your ads are gaining impressions online doesn’t mean that they are successful. Even if you’re targeting keywords that total hundreds of thousands of traffic, your ads will never be completely efficient.

As a result, make sure that you analyze the demand of your targeted keywords before moving forward. This goes beyond determining how much traffic a standard keyword receives.

You can analyze the demand of a keyword by using external solutions, such as WordStream, SpyFu, SEMRush, and Ubersuggest.

Build Keyword Lists:

Do you know how many keywords you’re targeting? Are they organized accordingly so you can monitor their performance? If not, then you better get busy in establishing a keyword list.

Google Ads already shows you a complete list of the keywords you’re bidding for. Though, if you plan to use any of the external keyword research tools mentioned before, you’ll need to explore these keywords into a list.

Arrange Your Negative Keywords:

A major part of building a keyword list is deciding which keywords you don’t want to target. This may not seem important right now, but you could possibly be wasting money on irrelevant keywords that won’t net any bang for your buck.

If you’re attempting to scale your PPC campaign, the first step is analyzing areas where your ad budget is being wasted. Here are some effective ways to optimize your ad spend by creating a list of negative keywords:

  • Use Google Keyword Planner — This tool is capable of discovering any negative keyword that could be inhibiting your campaign.
  • Run Regular SQRs — By performing consistent search query reports, you can observe all of the keywords people are using to find your ads. If you see any keywords that are completely irrelevant to your business, add them to your list.
  • Know the Difference — There is a strong difference between negative keywords and poor-performing ones. If a keyword just isn’t working well for your business, you should place it in another campaign rather than deeming it irrelevant.

Perform Consistent Competitor Analysis:

If you’re going to be successful in scaling your PPC campaigns, then you’ll first have to spy on your fiercest competitors and understand how they’re structuring their campaigns.

In fact, this is one of the most important steps of building a PPC(Pay Per Click) campaign in the first place. Competitor analysis is the crux of both SEO and paid search. The good news is that there are several tools available to get a sneak peak into the campaigns of your competition.

Auction Insights via Google Ads, SpyFu, SEMRush, are all great tools to utilize in this regard.

Optimize Your Ad Copy:

Don’t fall into the trap of spamming keywords into your ad copy and headlines just to improve its quality score. While your ads will appear for relevant searches, it will fail to compel potential customers to click.

Remember, ad copy is for people, not Google or other. Make sure you are communicating clear and concise information to your target audience, such as your offer, contact information, and buzz words (such as buy now).

The important thing when writing ad copy is to always write for the end user.

Nail the CTAs

Like the ad copy, the call-to-action (CTA) is also one of the most important structural components of any campaign. Therefore, pay close attention to the verbiage and contact information you use in your CTAs.

If you’re selling products, you should strive towards attracting your audience to “buy now”. On the other hand, if you’re selling services, it would be best to convince your audience to “learn more”.

These are clear differences, as most online products are geared toward consumers who have natural impulses to splurge in comparison to key decision makers who are interested in a service.

Since your CTAs will impact your entire campaign, place them in rigorous A/B tests to ensure they are effectively converting your target audience.

Grow Your PPC Campaign Today!

Scaling your PPC (Pay Per Click) campaign will ultimately require a great deal of experimentation, time, effort, and money.

When you choose to do all of the work yourself, you can run the risk of wasting your valuable investment and ruining your campaign.

In such cases, it’s time to fire your PPC agency.

Nonetheless, if you’re still interested in growing your Pay per click campaign, then you’ve come to the right place. Contact us today to receive a free proposal to begin scaling your campaign.

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