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The ultimate aim of PPC advertising campaigns is to get business to your website and increase your sales. You want to drive traffic, build your customer base, and sustain your profitability. While we all understand this goal, a common stumbling block is realizing how to measure this and what benchmarks to consider to see if your PPC ads are worthwhile.
This is where conversion rates are king. A conversion rate is the percentage of customers who perform a specific action after clicking on one of your ads. This is a step forward compare to impressions because we are looking at positive actions – not just clicks.
An example of a conversion could be a sale, filling out a contact form, signing up for a newsletter, or requesting a product brochure for example. In this article, I explain how to measure conversion, and what you can do to improve your rates.
Formula = (Total Conversions / Number of Interactions) x 100
First, you must understand how to measure your PPC conversion rates and the above formula is the starting point.
Total conversions are the positive actions customers took after viewing your ad. Remember that these should be pre-defined and you may have multiple conversions such as product purchases and information requests. It is preferable to calculate separate conversion rates for each of your conversions, but also have an overall rate that encapsulates everything.
The number of interactions relates to how many times people clicked on your ad. Let’s look at an example.
In the last week, you had 234 interactions, and from these, there were 19 conversions. The formula would be as follows:
(19 / 234) x 100 = 8.11%
Knowing PPC conversion rates is fantastic but you also need some type of benchmark to compare this against. A Google Ads Company can provide statistical data to compare to, but as a whole, Google PPC ads have an average conversion rate of 3.75%.
Furthermore, the average conversion rate for PPC ads in general (across multiple platforms) is 2.35%. This allows you to set your expectations accordingly and not have unrealistic goals.
PPC conversion rates by industry can vary and some like catering & restaurants and media & entertainment do have higher averages. I advise spending time researching industry averages so you know what to aim for.
You now have an understanding of conversion rate calculations and expectations, but what can you do to improve your conversions? There is no definitive answer and each business is different, but there are some core methods you can do which we discuss below.
Landing pages are where your customer is directed after they click on your ad. These pages must be optimized, user-friendly, and fully functional. The simplest thing is to make sure everything works including navigation and links.
You also want to refine the SEO including keyword usage and page loading speeds. Essentially, your landing pages need to be perfect, and they need to be engaging to the customer to prompt that positive conversion.
Low conversion rates may simply be a case of poor ad copy too. This could be uninteresting text, poor-quality images, or bad keyword usage, for example.
Refining your ad copy will be a continual process and Google Ads has many tools that allow you to easily use multiple texts and heading variations for the same ad to see which ones yield the best results. Testing is an important factor and you can’t expect to stick with one ad and it to provide fantastic conversions immediately.
Google measures its PPC ads using the Google Ad Quality Score and this is an important metric for various reasons. Firstly, a higher quality score will result in a reduced CPC (cost per click) which ultimately means your ads are more cost-effective.
A higher quality score should also theoretically mean more conversions simply because your ads are better quality. They are more relevant to your target customer, the landing pages give a great customer experience, and the keywords are gaining the right traction.
You may have a low conversion rate because you are using the wrong keywords which is resulting in your ads being displayed to people who are never likely to make a purchase or do something positive on your website.
Keywords can be continually refined and you can easily use different keywords in your ad copy to see which ones yield the best results. Also, consider nuances like the keyword match type which helps filter the people who will find your ads.
Negative keywords are words and phrases that you DON’T want your ads to appear for. Not adding negative keywords can impact your conversions as it could mean your ads are displaying for the wrong audience.
For example, perhaps you have a luxury furniture store aimed at people with more disposable income. If your ads are appearing for people searching for cheap furniture, the conversions will be lower. In an instance like this, you could add cheap and similar words as negative keywords to stop your ads from appearing for those searches.
It’s important to clearly define your conversions beforehand and set out goals for what you want to achieve from your PPC campaigns. This will make it much easier to measure the conversions and see the success of your ads in relation to your business goals.
The aim is to then strive for continual improvement and use the conversion rate as a benchmark figure that you want to increase. This is done by improving your ad copy, revising keyword usage, utilizing negative keywords, and improving landing pages for example.
PPC marketing is statistically one of the most effective marketing strategies for online business and it can yield excellent conversions. Platforms like Google Ads and Facebook Ads allow you to create customized campaigns using keywords to target potential or existing customers effectively while also controlling your spending.
You may already be aware of the potential power paid advertising has, but did you know that ads come in many forms? There are 8 common types of PPC ads that your business can utilize and I explain them below together with their benefits.
Display ads are like your bread and butter – they are widely used and can form the backbone of your PPC campaign. These ads are displayed on websites in varying pre-defined positions such as banners, or at the side of content.
Google display ads are distributed on their vast display network which includes thousands of websites so the potential exposure and CTR can be fantastic. The ads are typically made with a combination of images and text and can be customized to target specific audiences through the use of keywords.
Like display ads, search ads are some of the most common and most businesses will have a variety of search ads as part of their PPC campaign. You have probably seen plenty of search ads without realizing it when using Google search.
These are the search results that appear at the top of SERPs and you can identify them as they have the words “Ad” next to the link URL. Search ads are text only but are incredibly effective when the right keywords and copy are used.
Due to the prevalence of social media in today’s society, it stands to reason that social ads are highly effective and widely used. Simply put, these are ads displayed on your social media feeds such as Instagram, Facebook, and LinkedIn.
You can really target your ideal audience via social media ads and the flexibility is excellent. If you want to make use of these ads you must first consider your customer demographic and think about which social media platforms they are likely to use.
Did you know that around 85% of businesses use video in their marketing campaigns? It’s easy to see why this is the case due to the prevalence of platforms like YouTube and TikTok. As a result, video ads are widely used and Google allows you to create ads that are displayed on YouTube.
These could be mid-roll ads or the ad banners you see pop up at the bottom of videos. Either way, as YouTube has an estimated user base of 2 billion, these types of paid ads are definitely worth considering.
As part of Google Ads services an SEO agency will also help you target existing customers. This can be done via paid advertising too in the form of remarketing ads. These ads are specifically designed to remind past customers that you still exist.
Google Ads has a brilliant remarketing campaign that allows you to target existing customers based on different interactions like those who have made a purchase, signed up to your email newsletter, or spent X amount of time on your website.
Many people don’t realize the connection between Google and Gmail and Google Ads includes Gmail Sponsored Ads which allows you to send ads directly to customers’ inboxes.
These ads can be highly customized and you can target specific people based on factors like demographics, customer match, and affinity audiences. Gmail ads offer another outlet and a way to diversify your offering to potentially reach more people.
Shopping ads are a type of search ad but they offer more detail and are tailored for specific products and customers who are actively wanting to make a purchase.
You may have seen a shopping ad when looking for something on Google – they typically appear at the top of search results for products and include a product photo, its price, and its name. These ads can be highly effective for retail businesses and they have an advantage over standard search ads because the customer can immediately see the product photo and price.
Local service ads can be highly useful but they are limited in their scope as they are only available to particular businesses. These include plumbers, electricians, garage door companies, locksmiths, and HVAC companies.
If you run one of these businesses, fantastic – you can utilize this type of highly targeted advertising. To make these ads you have to register as a service provider on Google first. The local service ads show a little more detail compared to search ads as they include a star rating, opening times, and your contact number.
With the wide variety of PPC ads available, you can easily create a paid ad campaign that matches your marketing goals and attracts the right audience. Google Ads is the best option due to the vast Google Display Network, but social media ads on Facebook and Instagram can be highly effective too.
Before you choose an ad type or start developing strategies around them, it’s important to assess which types of paid ads are the most appropriate. Not every industry or business might benefit from video ads for example depending on your customer demographics and if you are B2B or B2C.
Your business has decided to jump into the epic world of paid advertising and has created a handful of Google Ads across several ad channels – amazing!
That all sounds fantastic but after a few weeks, you quickly realize that you don’t really know if they are working or if your money has been wasted or not! This is where pay-per-click analysis comes in and puts you on track.
If you feel like your Google Ads and paid advertising has no direction, read on and I will explain the basics of PPC analysis and how it can help.
PPC ads are undoubtedly an effective marketing tool… IF you know what you are doing and take the time to analyze and refine your adverts.
This is PPC analysis in a nutshell. It is the process of dissecting your ads and looking at various associated metrics to define their success in relation to your marketing goals.
From this analysis, the aim is to then make adjustments and improvements so your money is well spent and your ad’s performance continues to grow.
So, PPC analysis is basically a monitoring technique used to improve your Google Ads and make sure they are yielding the best possible results.
But how do you do that? Where do you start and what do you choose to analyze? There is no set list for this as ultimately what you choose to analyze depends on your ad type and marketing goals.
However, the following five metrics are a brilliant starting point and are generally included in most PPC reviews.
The overlords at Google have devised a quality score so you can see if your ads are actually any good. This quality score is incredibly important as it directly affects your ad placement and visibility.
This is because Google wants to maintain a certain quality level across its platform and for its customers. By analyzing your quality score you can make improvements and make sure you have a better chance of placement together with a low cost per click.
Click-Through Rate is one of the most important PPC metrics as it tells you how many people actually click on your ads and visit your website when viewing them.
Without a high CTR, you won’t have a positive ROI as ultimately you need people to go to your website to buy a product or make an inquiry for example.
You can delve further than CTR too, however, and look at detailed metrics relating to website traffic. CTR is a positive thing, but it’s also great to know what the customers are doing when they visit your website.
This falls into a wider SEO auditing process too but is incredibly useful for PPC ads. You can look at metrics like bounce rate, individual page traffic, and time spent on pages.
If you aren’t targeting the right people then regardless of how good your ads are, you won’t get a decent CTR.
Understanding your audience is a key part of pay-per-click analysis and you should always strive to learn more about their shopping and searching habits.
Impression share relates to the frequency your ads are triggered or shown in relation to search queries. This is highly important as it allows you to see if your ad copy and keyword usage are working. A lower impression share means poor ad visibility and ultimately poor PPC performance.
That’s a pretty comprehensive starting list for your analysis but we can go one step further and discuss some important dos and don’ts.
It’s surprising how in many processes the basics are overlooked and PPC analysis is no different. While it’s important to look at keywords, CTR, and ad timing, what about the basic ad parameters and settings? Make sure things like bidding methods, campaign settings, and ad groups are in order and optimized.
To build on the above, there are certain structural aspects relating to your PPC campaigns that must be considered too. These include important PPC data like your budget, the number of campaigns you have, and how your PPC is managed. You should ideally have pre-defined goals and guidelines relating to things like budgets to make sure they are being controlled.
Did you know that when you publish an ad can have a huge impact on its effectiveness? Posting times are a key aspect to analyze and you should look at the data to see if there are any trends relating to particular times of the day, or days of the week that yield better results. Similarly, if you notice certain times result in poor engagement, you can stop running them or alter when you post them.
You can’t assess your PPC ads in a vacuum without considering what your competition is doing. By analyzing your competitors, you can see how your business shapes up. You may gain useful insight too regarding things like keyword usage, negative keywords, ad timings, and copy. Never plagiarise what they are doing, but use what they are doing to your advantage.
You’re Google Ads aren’t going to miraculously improve on their own so it’s up to you to either start analysis today or hire the services of the best Google Ads agency to do it for you!
Either way, don’t let your paid advertising budget go to waste – you need to start practicing PPC analysis today to get an improved ROI and make sure your marketing is heading in the right direction.
Paid advertising can be incredibly lucrative and platforms like Google Ads allow you to reach your target audience in a cost-effective manner.
The caveat is, is that you must take the time and effort to create streamlined ads that utilize keywords correctly while also understanding the different nuances of things like bidding, negative keywords, and ad types.
Doing this requires a careful, considered, and detailed approach and using techniques like PPC management. In this article we discuss PPC management, what it involves, and how it can benefit your paid advertising campaigns.
PPC management is essentially the process of controlling and monitoring your PPC ads closely to maximize results.
This can be done in-house by your marketing team, or you can hire a Google Ads marketing agency that specializes in PPC management.
Instead of simply creating a series of Google Ads and hoping they work, you are taking a more in-depth and detailed approach. This includes proper keyword research, looking at different ad channels, and testing ad variations for example.
With an understanding of PPC management, we can now delve into the finer points and look at what this entails.
One of the main aspects of managed PPC is keywords. Keywords are vital to the success of Google Ads campaigns as they related to what people are searching for when your ads are displayed.
The first part is to find the right keywords for your business and ads. This involves using keyword research tools and analyzing your customer’s searching and buying habits.
With appropriate keywords select and inserted into your ads, they must then be analyzed to see which ones are the most effective and getting the best traction.
To create effective Google Ads you must utilize the right channels. There are around 8 different ad types including search ads, display ads, social media ads, retargeting ads, video ads, and local service ads.
It is the responsibility of the PPC manager to select the most appropriate ad channels – the ones that are most relevant to your business and should yield the best results. This could be a process of trial and error and it will likely be an ongoing part of your PPC management as your business grows and evolves.
Of course, you can’t simply do all this research and analysis, create your ads, and then stop! The hard work continues and the best PPC management involves active ad monitoring.
The PPC manager should be continually assessing the ad performance to see what is and isn’t working. Adjustments can then be made such as changing keywords, writing different ad copy, or even using different ad sizes and channels.
This is another continual process and if you used a third-party Google Ads marketing agency they would most likely assign a PPC manager who would provide weekly feedback and adjustments.
Competitors can be a trove of information and you can look at what they are doing to see what is and isn’t working in your industry. You can never plagiarise and rip their ads, but you can use various tools to analyze competitor keywords for example.
Knowing what your competitors are doing can help improve your own ads but also show you niches that they have missed where you could gain more customers or build new audiences.
Google Ads has a split testing feature where you can quickly test multiple iterations of the same ad. You could change aspects of the ads like headlines, titles, text, and images and then run split tests.
This is another core component of PPC management and it allows you to see which versions of your ads are the most effective.
So now you understand what PPC management involves, why should you care? There are many benefits to managed PPC and using a Google Ads marketing agency and I have listed them below:
Ultimately, managed PPC affects your bottom line. If you can manage your paid advertising and create better ads, you will hopefully get better end results with more conversions.
It means that the money you invest in PPC marketing is worthwhile and you can use the profits to grow your business further.
If you create Google Ads without any knowledge and research, your money will be uncontrolled and potentially wasted.
In contrast, managed PPC means everything is ultra-focused and targeted. This should mean that every dollar spent is worthwhile and your marketing budget is being used effectively.
Part of PPC management involves keyword research and utilizing customer data. This data can be used in other areas of your business like website SEO and email marketing. As a result, you can improve your business focus as all your different marketing strategies will be working in tandem and using the same data.
Without effective PPC management, your online marketing strategies will likely be ineffective and you will not get the best ROI. You need to control and monitor your PPC campaigns closely to make sure they are targeting the right customers, maximizing the potential of your keywords, and achieving your marketing goals.
While it is possible to perform PPC management in-house, it could be beneficial to look at the services of a PPC manager from a third-party company. Working with a PPC manager allows you to let them take the reigns and maximize your marketing while you concentrate your business efforts elsewhere.
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