Scaling and growing a PPC campaign is all finding areas for growth in relation to getting the most conversions for every dollar spent.
Believe it or not, many successful PPC campaigns waste hundreds and even thousands of dollars on wasted impressions.
In other words, they’re not ready to effectively scale.
This means that even if your local campaigns are acquiring thousands of impressions every week, your local PPC ads could be potentially falling on blind eyes and deaf ears.
Looking into every impression you receive is difficult, if not downright impossible.
Local businesses, in particular, are more fulfilled when they can convert ad impressions into foot traffic.
In paid search, optimizing PPC campaigns to achieve this goal is called local PPC.
A local PPC ad involves a lot of refinement around optimizing your local PPC ads for nearby searches to compel viewers to visit a location instead of a website.
This is done mainly through geotargeting.
If you’re not familiar, local PPC can be a complicated topic. However, like local SEO, local PPC isn’t as meticulous when you understand the benefits of geotargeting.
As such, this guide will explain all you need to know about both subjects.
To better understand local PPC, let’s provide an example.
Let’s say that you’re at home and want to order takeout for dinner. As you’re searching for restaurants online, you come across an ad for one of your favorite local restaurants that has begun to offer delivery.
Intrigued with the idea of having your food delivered, you click the ad and immediately place your order. As simple as this example sounds, this is what local PPC is. Even with a tight budget, a defined local PPC strategy can help you get your local search ads right in front of prospects with strong buyer’s intent.
With that said, local PPC is a paid search campaign that’s designed to target individuals within a specific region.
You can run these local PPC campaigns on both social media platforms and search engines, primarily through Google and Facebook Ads.
With local PPC, you only pay when a person clicks on your ad, so you have to be careful about who you’re targeting. Wasted conversions on people outside of your scope of service can result in an inflated budget over time.
Thus, the benefits of local PPC are:
With a local PPC strategy, your ads will only show up in front of people who are the most interested in your products and services, mainly because you control who your ads target.
Ideally, your ads should only target people who can benefit from your business. Since your local PPC campaigns is–by definition–local, you won’t have to compete with corporate enterprises. This means bidding won’t be as intensive, and you can actually stretch your marketing dollars to achieve even more conversions.
A successful local PPC campaign will endure less competition, in addition to more impressions and conversions.
As a local business running local business PPC, make sure potential customers and local searchers know you exist is paramount. By running local PPC campaign, you can improve your brand awareness in your community.
As online shopping becomes more popular, it’s never been more important to run a local PPC campaign. When your ads show up to relevant/target audience, they’ll be much more likely to convert since you’re targeting qualified leads instead of unrefined prospects.
Fortunately, local PPC ads are more measurable than other local marketing techniques, such as flyers and banners. By using these ads, you can more accurately track impressions, clicks, and conversions.
One of the most frustrating aspects of running a nationwide PPC campaign is measuring up to enterprises with larger budgets. What makes matters worse is that you could be up against a fierce competitor that’s receiving help from a top-tier digital marketing agency.
In local PPC, you’ll simply be pitted against other nearby businesses. This means you should know your competitive landscape better. Thus, it’s possible to achieve more success running a local PPC campaign compared to a broader one.
Now that you know what local PPC is and why it’s important, it’s now time to begin putting in the work to create an effective strategy. Here are some proven ways to get started:
When you decide to set up your campaign, make sure that your location is highly specific before moving forward. For example, you should even use your zip code to define your local services ads area.
With that said, it’s also important to include areas where you don’t do local business PPC to avoid targeting the wrong prospects. When you include a specific location, your campaign and budget becomes more efficient since your ads won’t reach people who can’t use your service.
The phrases you use in your PPC ads should also be highly specific and relevant to the location where you’re doing local business PPC. For this step, you can use Google Trends to see if people in your area are using “Chinese takeout” instead of “Chinese food near me.”
Also, make sure to include your service location in your ad. By including your city name in the headline and copy of your ad can disqualify ineligible prospects from clicking on your ad.
That way, you can save money by never paying for clicks from someone who’ll never convert. Using hyper-local phrases along with targeted keywords is the key to a successful strategy.
Running a local PPC campaign makes it simple to immediately test and optimize your ads based on real-time results. It’s important to stay vigilant and adapt your ads to changes in its performance, whether positive or negative.
During tests, you can perform A/B tests to conduct side-by-side comparisons to different aspects of your ads, such as headlines, copy, and call-to-actions (CTAs).
If you are already running an effective SEO campaign, you should write down your high-performance local PPC keywords and begin targeting them in your local PPC strategy. For example, if a certain keyword performs well for organic search, it may produce the same results for paid search.
You can gain incredible insights into the best-performing keywords people are using to find your website in Google Search Console. You can also use tools like Ahrefs and SEMrush.
Remember, SEO vs. PPC is not a mutually exclusive strategy!
By enabling ad extensions, you can add a lot of important details about your local business to your local PPC campaign. The more details you can add, the better your ads will perform.
Thus, you’ll get the most bang for your buck. The two types of ad extensions you should consider are for your phone number and location. This way, you can add your phone number and address to your ads so your leads can contact you directly.
Before you set up any ad extensions, ensure that your Google My Business (GMB) profile is up-to-date with accurate information. Your campaign will pull your data from your GMB profile.
These buttons make it easier for people to contact your business outright instead of visiting your website.
Again, you can run a local PPC campaign on both search engines and social media platforms. Try using both Facebook and Google Ads. Google Ads is clearly the most widely-used online advertising platform in the world.
Facebook Ads are just as recognizable, especially if your target demographics are constantly using Facebook in the first place.
Having a designated page that can convert qualified leads is key to making sure you aren’t wasting your money on ads that aren’t following through. This is called a landing page.
Instead of linking your ads to your website URL, use a landing page instead. This page should:
You may have to hire a copywriter and UI designer, but the ROI you can achieve from creating a landing page can be extremely beneficial to your bottom line.
Geotargeting is often synonymous with local PPC, and that’s for a great reason. Geographic ad targeting, or geotargeting for short, is an advertising strategy where the advertiser can choose specific locations where their ads will appear.
Geotargeting is popular on virtually any online advertising platform, from Google Ads to LinkedIn ads. The purpose of geotargeting is to place your ads in locations where prospects are more likely to convert, improving the ROI of your ad budget.
Here is what a sample geo-targeted ad looks like:
The good news for advertisers is that geotargeting is a rather simple concept. With this feature, your ads can trace the most qualified leads based on:
One of the most exciting facts about geotargeting is that your net can be as narrow and wide as you want. Below are some of the examples of geographical categories you can target in your ads:
This is the widest range you’ll ideally want to target. Outside of this range, your ads won’t be considered local, and then you’ll be bidding against global competitors. In any case, you use this category to address concerns your audience may be facing, such as 24-hour customer service and worldwide shipping.
If you’re still trying to reach a large audience but the “countries” range is too wide, then you can settle for this category instead. For this category, you can target specific provinces, regions, and states.
This is the perfect setting for local PPC ads. In this category, you can target leads (via location extensions) in specific radiuses and proximities from your business, rather than casting a wide net in regions and cities.
In fact, targeting a radius is best for driving foot traffic when you’re offering delivery services. The only caveat is that you must meet a certain threshold of traffic when targeting specific radiuses.
This means that if your target range is too small, your ads may not be seen at all, and you’ll just waste your time. On the other hand, if your target range is too large, then you could be targeting people who aren’t going to travel to visit your business.
If you’re going to use geotargeting to refine your ad reach, here are some effective strategies for getting the job done:
Brick-and-mortar stores often use location-specific ads to drive foot traffic. If you’re following this successful PPC strategy, take it a step further and create time-specific ads as well. For example, if your business is open at specific times, optimize your ads accordingly.
If you’re drawing a lot of visitors to your restaurant during lunch hours but want the same results for breakfast, then set your ads earlier in the day to accomplish this goal.
When you’re using geotargeting to segment your campaigns, this opens up the door of possibilities regarding the different aspects you can test, such as:
However, this is only on a limited scale. If you’re not sure how your campaign will perform, you can test your ad to specific markets before it goes live.
This tip may seem very basic, but do you understand how many location names are similar in any given city. When you misspell or use the wrong location name, your ads aren’t going to give mixed signals.
As such, make sure that your locations are very specific and accurate before running them.
As you can see, local PPC isn’t too difficult to understand. However, if you really want to establish a competitive advantage in your industry, you should hire a qualified PPC agency to run your ads.
Whether your ads aren’t reaching your target audience or you’re spending too much money, we can help. Contact us today to speak to a member of our team and receive a free proposal.
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When this apartment complex client partnered with PPC.co, their goal was clear: generate more qualified leads through Google Ads. In just 60 days—from January to March 2025—we transformed their paid acquisition performance. Total conversions more than tripled, jumping from 10 to 32, while the overall conversion rate soared by over 300%. At the same time, we drove down the cost per conversion by 44%, delivering significantly more leads at a much lower cost.
By strategically combining Performance Max and high-intent Search campaigns, we not only increased lead volume but improved overall efficiency and ROI. This rapid and measurable improvement underscores the value of data-driven optimization and expert campaign management.
This case study is a testament to what can happen when a well-structured campaign meets expert strategy and continuous optimization. Whether you're launching a new property or looking to boost occupancy in a competitive market, PPC.co delivers real results—fast.
Ready to grow your leads and lower your cost per conversion?
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If you’re running an e-commerce or retail business, you already know that visibility is everything. The best product in the world won’t sell if no one sees it. That’s where paid ads for ecommerce comes in.
Done right, they drive traffic, conversions, and repeat customers.
Done wrong, they drain your budget and leave you wondering what went wrong.
Whether you’re spending $500 a month or $50,000, your goal is the same: profitability. Not just clicks, and certainly not just impressions. You want to turn ad dollars into real, predictable revenue.
So how do top-performing e-commerce and retail brands make their paid ads work?
What are they doing that you’re not?
This guide breaks it down step-by-step, so you can start running profitable ads with confidence.
Before you launch a single campaign, you need clarity on your audience and goals. Are you trying to boost first-time sales? Increase average order value? Each objective requires a different strategy and metrics for success.
Don’t fall into the trap of launching ads just to “see what happens.” Paid media works best when it’s part of a bigger strategy. So before you log in to Google Ads or Meta Ads Manager, get specific about what success looks like.
If you want to run profitable paid ads, knowing your numbers is the foundation of your entire strategy. Without a clear understanding of your margins, break-even points, and how much you can afford to spend to acquire a customer, you’re essentially gambling with your ad budget.
And in e-commerce, that can get expensive fast.
Let’s start with the most critical numbers you need to know:
Your break-even ROAS tells you the minimum return you need on your ad spend to not lose money. It’s calculated by dividing 1 by your gross profit margin.
So if your margin is 50 percent, your break-even ROAS is 2.0. That means for every $1 you spend on ads, you need to make $2 in sales just to break even.
For example, let’s say you’re running Facebook Ads and spending $1,000 on a campaign. If your break-even ROAS is 2.0, you need to generate at least $2,000 in revenue to avoid losing money. Anything above that is profit. Anything below that eats into your cash.
Once you know your numbers, you can reverse-engineer your ad strategy instead of throwing money into the void and hoping for results. For instance, if your AOV is low (say $25), you might struggle to profit from ads unless you have a very low COGS or high conversion rates. In that case, you might want to:
On the other hand, if your AOV is $150 and your margins are strong, you have more room to compete in ad auctions, bid more aggressively, and test multiple audiences and creatives without instantly wiping out your profit.
A lot of beginner advertisers focus entirely on immediate return from ads. That’s understandable – but short-sighted. If you’re breaking even or slightly losing on the first sale, that might still be a smart move if you’re building long-term customer relationships.
That’s where Customer Lifetime Value (LTV) comes in. If you know that your average customer places three orders a year, each worth $60, then their LTV is $180. If you spend $40 to acquire that customer with your first ad, but earn $140 more over the next 12 months, that ad was extremely profitable in the long run.
Top e-commerce brands build their paid strategies around LTV-to-CAC ratio – how much they earn over time compared to what they paid to acquire the customer.
A healthy ratio is usually 3:1 or higher. So if you’re spending $50 to acquire a customer, you want to earn at least $150 from that customer over time.
Once you understand your numbers, you can plan your ad spend with precision. You’ll know exactly:
Let’s say you want to make $5,000 in profit this month, and your product has a 50 percent gross margin. That means you need $10,000 in sales. If your target ROAS is 2.5, you can spend up to $4,000 in ad spend to hit that goal. With those numbers in hand, you now have a roadmap for campaign budgeting, not just a shot in the dark.
Every ad platform has strengths. But if you try to use them all at once, you’ll burn through your budget without learning much. Instead, pick one or two that align best with your business model and customer behavior.
If you’re selling visually appealing products like apparel, skincare, or home goods, platforms like Instagram and TikTok can deliver strong returns – especially with the right creative. If you’re focused on high-intent buyers, Google Search and Shopping Ads are goldmines. And if you’re targeting professionals or B2B retail buyers, LinkedIn may offer surprising results.
Test channels strategically. Start with the one that matches where your customers spend their time and scale from there. The best platform for you is the one where your ideal customers are already shopping, scrolling, or searching.
One of the biggest mistakes retailers make is casting too wide a net. You don’t want everyone to see your ad – you want the right people to see it.
On Google, this means targeting high-intent keywords that signal buying behavior. Focus on terms like “buy,” “best,” “free shipping,” or product-specific searches. On Facebook, Instagram, or TikTok, you’ll want to dial in your custom audiences using demographic data, lookalikes, interests, and behavior.
Don’t forget retargeting. Most people won’t buy the first time they visit your site, but retargeting brings them back when they’re ready. Set up ads that follow people who viewed a product, added to cart, or engaged with your brand but didn’t check out.
The more relevant your targeting, the more efficient your spend and the higher your return.
Creative is the make-or-break factor in most e-commerce ad campaigns. You can have perfect targeting and the right product, but if your ad doesn’t grab attention in the first two seconds, it won’t convert.
Your creative needs to do three things quickly:
Use high-quality product photos or videos. Show your product in action. Highlight a clear benefit or solve a specific problem. Incorporate customer reviews or user-generated content to build trust.
For paid social, test multiple creatives at once – video vs. image, UGC vs. branded, short-form vs. long-form – and let performance data guide your iterations. On search platforms like Google, focus on copy that’s compelling and packed with relevant keywords. Test different headlines and descriptions to see what gets the best click-through rate.
Sending paid traffic to your homepage is a rookie mistake. You want every click to land on a page that’s designed to convert. That means fast load times, mobile optimization, and a clear call-to-action.
If you’re promoting a specific product, send users to that product page and not your full catalog. If you’re offering a bundle or a seasonal deal, create a dedicated landing page with copy, visuals, and layout tailored to that offer.
Remove distractions. Reduce friction. Make it stupid-easy for people to buy. The less effort it takes, the more sales you’ll see. And don’t forget to A/B test. Sometimes a simple tweak to your headline or CTA can double your conversion rate overnight.
Once your ads are live, your job isn’t done. In fact, this is where it really begins. You need to monitor performance regularly, looking at more than just the surface-level metrics.
Click-through rate (CTR) tells you how well your ad is capturing attention. Conversion rate shows how well your landing page is sealing the deal. ROAS tells you how profitable your campaign is. And CPA helps you compare efficiency across different products or audiences.
Watch for early indicators of success – or failure.
Treat your campaigns like living systems. Tweak, test, and improve them continuously.
Once you find a winning combination – an ad, offer, and audience that works – it’s time to scale. Increase your budget gradually while keeping an eye on performance. Scaling too fast can tank your results, so go step by step.
Duplicate high-performing campaigns to test new audiences or creatives. Experiment with upsells, bundles, or time-limited offers to increase AOV. Layer in email or SMS marketing to retarget paid traffic and drive repeat sales.
And just as importantly, don’t be afraid to kill underperforming ads. If something isn’t working after a reasonable test period, cut it. Your budget should be flowing to what works – not what you hope will work.
One of the biggest mistakes in paid advertising is chasing one-off sales without thinking about the bigger picture. Winning e-commerce brands think in terms of customer lifetime value.
If your first sale breaks even, that’s fine. (As long as you have a plan to turn that customer into a repeat buyer. ) You can use post-purchase emails, loyalty programs, and retargeting ads to bring people back.
At the end of the day, when you view paid ads as the beginning of a customer relationship – not the end – you unlock real long-term profitability. And at PPC.co, that’s where we want to help you! We offer industry-leading PPC management services for ecommerce and retail brands who want to stop wasting ad spend and start generating real ROI.
Contact us today to learn more!
