Pay-per-click ROI

So, you’ve got your PPC campaigns up and running after checking out our previous post on PPC basics, right? But what do you do next? How can you make sure that your campaigns are making as much money as possible?

First off, you need to know why you are driving traffic – your goal. Why do you want to generate traffic (hint, it’s usually to convert leads and make money) and what incentive for the user is there to convert through your form? Is it a whitepaper download, event registration, product purchase, or inquiry? You need to have an appropriate call to action to pull in the right type of lead. Even if you are just using your PPC campaigns to gauge general visibility or interest in a new product, you want to make sure that you are setting the stage appropriately. And that starts with keywords and adcopy.

Keywords and adcopy

  • A/B test (or even multivariate test) your keywords and adcopy to improve your conversion rate.
  • Use an expansive keyword list to pull in the highest volume of traffic.
  • Have your keywords exist in broad, phrase, & exact match types – it will help balance traffic volume with conversion rate.
  • Are you using logical keywords with an enticing message? Make sure adcopy is enticing to the user and relevant to your goal – it will pre-qualify users. Also, using negative keywords will also help you filter out the wrong results. Filtering out poor search queries will reduce cost, increase CTR, and increase conversion rate. It’s a powerful tool!
  • Local keywords are good, but local adcopy can be more powerful. Keywords can only find demand because they have to be searched, but ad copy can create demand. Local specific adcopy will attract users over generic ad copy because they believe it will be ultra relevant to their geographic location.
  • Note competitor’s keywords because they might have some good ideas.

Landing page

  • Make sure that you have a self-contained landing page. Don’t use your home page as your landing page because it could skew results when combined with SEO traffic. You want to be able to track the visitors as they funnel to your landing page from your adcopy.
  • Tunnel-focus your landing page and make it easy to navigate. Don’t have distractions that would deter the user from the ultimate goal of filling out your form. Some copy is helpful, but don’t link around your website – it just encourages the user to leave the form.
  • Just like keywords, make sure that your landing page has relevance and a good call to action.
  • Make sure that important content and focal point(s) for your conversion goals are above the page fold. Any items that would require scrolling are likely to be ignored or remain unseen.

Metrics

There are several metrics to keep in mind while tracking results and calculating ROI. There is value in impressions, but general awareness is not the reason you are using PPC. If you are focused on PPC for lead generation, it is crucial that you calculate click through rate, conversion rate, and average cost per lead. If you notice an improvement in any of the metrics when you make changes, you are optimizing your PPC campaign. Just make sure that you are constantly tracking. The worst thing you could do is set it and forget it.

 

Here are some important calculations:

  • CTR = clicks/impressions
  • ROI= gross profit/cost
  • ROAS (return on ad spend) =revenue/cost
  • Conversion rate = visitors who buy or submit inquiry/total clicks
  • Revenue per lead =total revenue/total conversions
  • Conversion Per 1000 Impressions= (Conversions/Impressions)*1000



Of course there are other factors involved in PPC ROI. If you think we left out an important one, comment below! Good luck and happy bidding!


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