In layman’s terms, the way to get maximum profit from your PPC campaigns is to ensure that your conversion rate is as high as it can be, that is, a high percentage of the clicks that you are getting should turn into a sale.
Running a profitable PPC campaign involves a lot of continuous calculations and constantly optimizing the Ad campaign based on the results. Seasoned internet marketing professionals at Pat’s Marketing can very easily do that for you and ensure that your PPC investment remains a highly returning one.
The Rule of Elasticity
An economics-derived formula lets you calculate the elasticity of the price you are paying for your clicks. It is very helpful in estimating just how much money spent on a PPC campaign is worth the investment. Market analysts believe that as long as you are keeping your ROI greater than the inverse ratio of the elasticity you just calculated, you are good to go.
Now, both ROI and Elasticity depend on the CPC of your campaign. When CPC increases, ROI decreases and so does Elasticity. Therefore, with even small change in CPC, your campaign can go from a good investment to an ‘over investment’.
Elasticity is a Volatile Quantity
Elasticity varies by keywords and is different for each campaign. Moreover, it is also device-dependent. Elasticity for a certain campaign with a certain keyword can be different on mobile than it is on desktop.
With all these numbers and criteria to monitor in real time, it is best to hire the most experienced professional to manage your ads; else, the process will not only be unduly time-consuming but will also put you at a risk of running a campaign that makes you lesser profits than its potential.
Besides these calculations, there are a few steps that you can take to get the most out of your PPC ads.
Choose the Optimum Combination of Short Tail Keywords and Long Tail Keywords
Use one of the powerful free keyword tools in the market to get a list of most popular short tail and long tail keywords in your industry. And for PPC in particular, refrain from only using short tail ones as a bait for attracting a greater amount of traffic – it will only make your CPC go up and your conversion rate go down.
Create Effective Keyword Groups
Grouping keywords means clubbing together semantically similar keywords. A finely chosen group of keywords substantially improves the performance of your AdWords campaign. Grouping enhances your quality score, which subsequently increases your click through rates (CTRs), letting you make the most out of your investment. In addition to enhanced CTRs, grouping begets a higher conversion rate and a lower cost per action (CPA).
Target each Group of Keywords by Type of Search
For some keywords, you might like your ad to appear in searches irrespective of the order of keywords the searcher typed; while for others, you may find it worthwhile to display your ad only if the search term matches exactly with the keyword-phrase you have specified. Based on this criterion, types of searches are divided into three categories:
1) Exact Matching Search ([keyword])
The searcher sees your ad only if they have mentioned the search term which matches exactly in terms of words and their order with the keywords that you have specified.
2) Phrase Matching (“keyword”)
The searcher sees your ad if the order of words in their search term is the same as the order of words in your keyword group; there can be additional words, or fewer words in their search term but the order ought to remain the same.
3) Broad Match Modifier (+keyword)
The searcher sees your ad if keywords match the search term irrespective of the order of words in the search term.
4) Broad Matching Search (keyword)
The searcher sees your ad if any one of the keywords in their search term matches with any one of the keywords in your group.
Make Your Ad Copies better Targeted
While a generic ad copy can get in a higher amount of traffic to you, it will also bring down your conversion rates, as a large portion of the increased traffic might end up being that of non-buyers. So you’d end up paying for the increased number of clicks without getting an increase in sales to justify the costs.
Therefore, we recommend writing advertising copies that describe your product or service as accurately as possible in order to achieve the highest number of actual conversion out of your clicks – the one thing that ensures your PPC campaign remains profitable.
Invest in Making Your Landing Pages Relevant to the Search Term & Your Ad
Independent of what your business is offering or how many clicks you are getting, some landing pages simply get more done than others. A powerful landing page leverages the entire potential of your expensive clicks.
An action-oriented landing page makes it quick and smooth for the interested buyer to finish the transaction they are interested in; and also persuades the visitor still in the middle of the marketing funnel to take an action. It is an undeniable fact that a little additional work and investment in lading pages can increase the ROI of your entire PPC campaigns.
Measure, Analyze &Optimize your Pay Per Click campaigns
Measurement is valuable, analyzing is essential& optimizing is crucial to any successful Pay Per Click campaign.
Once done correctly, PPC campaign can generate more business for your business thus increasing your profits. Hiring a PPC expert to do the job for you is therefore a lucrative idea. At Pat’s Marketing, we keep updating our knowledge and constantly innovate our strategies to ensure fast and more affordable results for our clients. We provide detailed performance reports on a regular basis so the clients can see how well the campaign is progressing and how much ROI it is generating.
If you have any questions or would like to talk to one of our knowledgeable Toronto Pay Per Click consultants, please call us at +1-888-488-7287.