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.
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:
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.
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?
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.
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.
So, how do you see those better results?
What actionable steps can you take to optimize for profit in your PPC campaign?
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!
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Pay-per-click (PPC) remains one of the fastest paths to pipeline, but the economics vary widely by industry and are shifting as AI reshapes the SERP. CPCs are up versus prior years, conversion rates have improved in many categories, and lead quality is increasingly a function of how well advertisers feed first-party data into bidding models.
The table below summarizes 2025 search-PPC benchmarks by sector—CPC, conversion rate (CVR), and cost per lead (CPL)—so you can compare what “good” looks like in your niche and calibrate ROI assumptions.
Use these numbers as directional guardrails, then layer in your own close rates and LTV to get to the only metric that matters: profitable growth.
In short, AI is changing the way PPC campaign management is occurring, and it's happening FAST.
ROI ≈ (Close-Rate × Avg Customer LTV ÷ CPL) − 1
Example (legal): if close-rate 12% and LTV $6,000 on CPL $132 → ROI ≈ (0.12×6000 / 132) −1 ≈ 4.45x (345% net). Improve any one input (faster intake bumps close-rate; better routing lowers CPL) and ROI jumps. Benchmarks for CPL/CVR above provide solid starting points. LocaliQ
PPC will keep paying when two things are true:
(1) you can convert and qualify leads quickly, and
(2) your bidding models are trained on the outcomes that actually make you money.
As AI compresses differences in targeting, the edge shifts to first-party data, creative velocity, and value-based bidding.
Treat the benchmarks above as starting points, then rebuild your ROI math from the ground up: ROI ≈ (Close Rate × LTV ÷ CPL).
Contact us today for your customized PPC audit to see how we can improve your search engine marketing ad spend.
When you’re running pay-per-click (PPC) ads, it’s easy to assume clicks mean genuine interest, but most car shoppers are just kicking tires online. Seeing your inventory once doesn’t mean they’re ready to buy anytime soon or even at all. If you want to reach the portion of clicks that come from serious buyers, you need to use retargeting.
The reality is that even prospects who intend to buy a car will bounce before contacting you or visiting your lot in person. And if you don’t have a way to keep them aware of your business, when they’re ready to buy, they’ll buy from a competitor. Running retargeted ads will keep your dealership in their awareness even after they bounce.
According to a 2022 Cox Automotive Car Buyer Journey Study, the average person spends more than 14 hours searching for a new car, which includes visiting around 5 websites before making a purchase decision. The sites they visit include automakers, dealers, third-party sites, and pre-owned car lots with online inventory. Your prospects aren’t going to buy right away, so to get the sale you need to reel them back in. If you’re not using retargeting – also called remarketing – in your PPC campaign, you’re missing out on hot leads.
Buying a car isn’t a small decision. People compare makes, models, and deals and look for dealerships with great reputations. Getting a single click from a potential car buyer isn’t enough to make the sale. And when they bounce, there’s no guarantee they’ll remember you exist. You’re paying for all those initial clicks, and if potential leads never come back you’ve wasted your ad spend. When you use retargeting, you’ll have another chance to turn their curiosity into a conversation, and that’s why remarketing is an essential component in every PPC ad campaign.
PPC ad retargeting for car dealerships shows your ads to people who have already clicked on an ad or visited your website. When implemented strategically, it keeps your dealership visible across multiple platforms and follows those people across the web. For example, when you run retargeted ads on the Google Display Network, your display ads will show up on the blogs, news sites, and apps your prospects frequent.
You can also run retargeting campaigns on social media sites like Facebook and Instagram. As long as your prospects scroll through their daily feed, your ads will show up for them if they’ve already interacted with you. YouTube also offers retargeting options with video ads that play right before the content. In fact, don’t underestimate the power of YouTube video advertising. According to data from Wyzowl, video ads convince 84% of people to buy a product or service.
Not everyone searching for a new car will respond to the same bland, boilerplate message. For example, someone browsing luxury SUVs isn’t going to click on an ad that says, “Low APR on all models!” That’s where remarketing shines. It lets you tailor your message to what each user actually wants, which increases response rates.
With retargeting, you can segment your audience based on their interests and behavior. For example, someone comparing financing terms won’t be swayed by flashy sports car imagery. With retargeting, you can show truck shoppers truck ads and sports car shoppers sports car ads. It sounds simple, but it’s one of the most powerful marketing methods of all time. People are far more responsive to messages that feel personal. You may have caught their attention with a general ad at first, but once they start browsing those SUVs on your website, you can retarget them with SUV ads.
When you use retargeting, you can provide different calls to action (CTAs) to users based on how they’ve engaged with your web pages. A visitor who spent a lot of time on your truck inventory pages can be served ads for your latest truck deals. Someone who checked out your lease specials can be hit with ads that talk about financing offers. It’s deceptively simple and brutally effective. Relevance is everything. When your ads reflect what the prospect was already thinking about, it feels personal and resonates.
A next-level tactic is using engagement depth to determine how strong your call to action should be. For instance:
· Multi-page viewers and long dwell times. These are warm leads and can be retargeted with stronger CTAs like “Book a test drive” and “Get a quote today.” They’re close to converting and just need a little push.
· Single-page bouncers. These are people who just peeked at your site. They can be re-engaged with lighter touchpoints like a general promotion or model comparison guide to reel them back in.
· Abandoned lead forms. If someone started filling out a form but didn’t finish, retarget them with a reminder and a stronger offer to sweeten the deal (e.g., “Complete your form for $500 off!”).
This level of nuance turns retargeting into a conversion machine and allows you to show the customer exactly what they want to see.
People don’t buy cars from whatever dealer they find first. That’s too risky. They buy from dealerships they trust and that feel familiar. You can build that sense of familiarity and trust through retargeting. For example:
· Consistent branding across ads. Using consistent branding, design, and messaging throughout your ads reinforces your dealership’s identity.
· Frequency builds familiarity. People need to see a brand between 5-7 times before they’ll remember it. Retargeting puts your dealership in front of people over and over again. Even if they don’t click right away, it’s helping to establish your credibility.
· Social proof works. When you use social proof like customer testimonials or awards in your ads it builds trust with your prospects.
Trust is earned over time, and retargeting will help you get it.
If you’re not using retargeting, your competitors definitely are. Car dealerships operate in one of the most brutally competitive markets out there, with national chains and franchise giants dominating search results and flooding ad channels with endless budgets. If you’re not showing up again and again, your competitors will, and they’ll scoop up all your leads.
The good news is you don’t need a massive marketing budget to get results. Retargeting allows smaller, local dealerships to play smart rather than trying to play big. When you focus on local PPC with hyper-targeted remarketing, you can reach a smaller, more qualified audience – people who are actually in your area, browsing your inventory, and likely to buy soon.
And unlike those cookie-cutter campaigns from national dealers, you can make your messaging feel personal and specific to your local community. That’s an edge big budgets don’t have.
Every visitor who leaves your website without converting is a potential sale but not necessarily lost. With smart retargeting, you can bring them back into your funnel and stay top-of-mind while your competitors waste money shouting into the void. Persistence wins the sale and retargeting is how you stay on the map.
To be blunt, search ads can get expensive fast, especially when clicks can cost a couple dollars per click. Pouring money into cold traffic is gambling on people who may not be ready to engage. Retargeting changes everything.
Display retargeting clicks typically cost a fraction of what you’d pay for search ads using competitive keywords. You’re no longer paying top dollar to get someone’s attention from scratch – you’re nudging people who already know who you are, and those people are more likely to respond. This makes retargeting one of the most cost-effective ways to use your advertising budget.
· Lower CPC, higher intent. Retargeting costs less per click, but you’re targeting people who already visited your site and showed interest.
· Better conversion rates. Familiarity breeds trust. Retargeted visitors are statistically more likely to convert than new users who just clicked an ad out of curiosity.
· Higher ROI. Since retargeting reaches warm leads, the cost of acquiring a lead is usually lower, which means your overall cost per lead is lower and you get better ROI.
If you’re skipping remarketing because you think it’s just something “extra” that doesn’t make a difference, you’re not saving money – you’re losing easy wins. Instead of perpetually chasing new, cold traffic, invest in converting the traffic you’re already getting. That’s exactly what remarketing does.
Generic ads are fine for first impressions, but once someone has browsed your inventory it’s time to get specific with dynamic retargeting. Here’s how it works:
When a prospect views a specific vehicle on your site, you can use retargeting ads to show them the exact vehicles they viewed and others like it down to the year, color, trim, and mileage. For example, if they looked at a black 2005 BMW 535i, that’s exactly what they’ll see in the ad – the same photos, same specs, all across sites like YouTube, Facebook, news platforms, and more. This reminds your prospects of exactly what they want.
Dynamic retargeting works by integrating your live inventory feed with your ad platform, like Google Ads or Meta. This means the vehicles displayed in your ads will always be up to date and won’t feature cars you sold last week.
Beyond personalization, dynamic ads are an incredible tool for creating a sense of urgency:
· Leverage scarcity. With these ads, you can leverage the power of scarcity by stating that your inventory won’t last. Using messages like “Only 1 left” or “Recently reduced” signals that the opportunity won’t last.
· Show what’s popular. If a particular model is getting a lot of views, let your prosects know. People don’t want to miss out on a good deal.
· Trigger action with FOMO. Fear of missing out is real, and when people see the car they want again – with a reminder that it might sell soon – they’re more likely to come in for a test drive.
By using retargeted ads, you can increase conversion rates by up to 200% compared to standard display ads. These ads feel more like a helpful reminder than an outright advertisement.
If you’ve never run paid ads before, it’s easy to assume your only options are basic keyword targeting and generic follow-up ads. But today’s ad platforms give you a buffet of hyper-specific targeting capabilities to fine-tune exactly who sees your ads, where, when, and how.
One of the most effective PPC retargeting tactics for car dealerships is location-based targeting. With radius targeting, you can serve ads to people within a specified distance from your dealership, like within 10-15 miles. These will be prospects who are not only likely to visit your site but could realistically walk into your showroom today. Don’t waste ad spend on clicks from people three states away.
Then there are device-specific campaigns. If your analytics show that 75% or your traffic comes from mobile (this is common), you can launch a mobile-only retargeting campaign with click-to-call buttons, mobile-optimized landing pages, and a map and directions built right into your ads. This will improve the user experience and increase conversion rates.
Timing also matters. When you schedule your ads you can control when they appear. Run them during lunch breaks, in the evenings, or on weekends when people have more time to browse car listings and are more likely to make big purchase decisions.
Other strategic targeting elements include:
· Demographic targeting. You can tailor your messages based on age, income level, and household status. A 25-year-old college grad and a 45-year-old parent are not shopping for the same reasons even though they might buy the same car.
· Behavioral triggers. You can create audiences for your retargeted ads based on repeat visits, clicks, video views, or interaction with a specific feature like a trade-in calculator.
· Lookalike audiences. Build new audiences that resemble your best customers. Platforms like Meta and Google are really good at identifying similar users based on their behavior online.
The bottom line is that retargeting doesn’t have to be broad. With the right strategy, it becomes a smart, cost-effective system for reaching the right prospects at the right time.
Have a sale, lease offer, or year-end clearance? Retargeting can amplify the urgency to act now. By offering short-term discounts and financing deals, you can tap into the urgency people feel when presented with time-sensitive offers. Emphasize the end date using a countdown timer or final deadline to create FOMO (fear of missing out).
With this type of retargeting, you can align your ads with your email messaging to increase conversions even more. For example, if you sent out a promotion to your email list, they’re likely to see your retargeted ads and be reminded of the deal you’re offering.
Retargeting is the PPC secret weapon most car dealerships don’t take advantage of. Using this strategy can make the difference between a one-time curious visitor and a buyer ready to schedule a test drive. If you’re spending money on clicks without retargeting your visitors, you’re wasting your ad spend.
At PPC.co, we specialize in high-performance white label PPC campaigns that include smart retargeting from day one. Whether you’re launching your first campaign or looking to tighten up your existing ad strategy, we can help you capture more leads, drive more traffic, and move cars off your lot. Let’s turn those clicks into closed deals – contact us now to get started.
