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Tag Archives: PPC budget

Using Account Organization to Spend PPC Dollars More Intelligently – Part 1

Most of the PPC accounts I look at do not take advantage of all of the different options that AdWords offers to organize your account for maximum success.  Most of them simply organize their campaigns based upon keywords.  They’ll separate keywords into separate campaigns just because they’re different keywords.  Or, they’ll keep all different kinds of keywords for all different kinds of products with all different kinds of marketing goals in the same campaign.  But, AdWords has given us the flexibility to have much more control over how we are spending our money so that every dollar can be maximized.

First, your account should be organized based upon your marketing objectives.  Therefore, before you create your campaigns (or if they’ve been running for a while now), lay out specifically what it is you’re are trying to accomplish.

Whatever, as long as it’s specific.

Once you’ve effectively laid out your marketing objectives, they should guide you into how to organize your campaigns and ad groups in your account.  If you have different products that require different budgets and have different product margins, conversion rates, sales cycles, etc., then you want to organize them into different campaigns so that you can control what is essentially different “markets” in your business.

For example, if a cruise company is selling different types of cruises all around the world, they might be targeting people in the United States looking for Caribbean cruises as well as people looking for Arctic cruises.  Let’s say the average Caribbean cruise sale is $2000 and they make a profit margin of 20% and the average Arctic cruise sale is $8000 and they make the same 20% profit margin.  And let’s say that each distinct landing page has the same conversion rate of 2%.

If this is the case, then the profit per click (visitor) that the cruise company makes for the Caribbean cruise is $8 ($2000 x 20% x 2 / 100) and for the Arctic cruise it’s $32 ($8000 x 20% x 2 / 100).  If they have the same amount of tickets available to sell for Caribbean cruises as Arctic cruises, they are going to want to have a much bigger budget for the Arctic cruises.  Since they make more for every cruise sold, they’ll be willing to spend more for visitors. 

Controlling the amount of money that is spent on each product type is a good reason to separate these distinct products into distinct campaigns and is just one of the options that AdWords has available to control how your ads are delivered and at what cost.

In my next post, we’ll be looking at more of the options that AdWords offers to allow complete control over keeping your PPC dollars spent intelligently in relation to your marketing objectives.

Stop Wasting PPC Clicks and Start Saving $$$ – Part 2

OK, we got rid of some wasted clicks from our PPC campaigns there.  Now, let’s do some more.

Let’s say we have an ad group that is dedicated to selling something specific like “Gibson Guitars.”  We’ve got keywords and targeted ads directed to a targeted landing page dealing directly with guitars that are made by Gibson.  And let’s say we’ve got a decent amount of money to work with so we decide to use the broad match term “gibson guitars” in our ad group.  Well, with broad match, we will get our keyword matched to all kind of queries, even as simple as “guitars.”

Or how about this one.  Let’s say we’re selling batteries for ATVs.  If we use the broad match term “atv batteries,” a search engine is likely to match our ad to the search query “batteries” very frequently.

The problem with this is we don’t want our ad for “gibson guitars” to be showing on the query “guitars” do we?  Who knows what kind of guitar or what kind of budget this searcher is looking for.  We don’t want to pay for the click unless that person is specifically looking for a Gibson.  We’d rather send that searcher to a more general landing page where they have the freedom to filter by what they’re looking for.  Therefore, we want to keep our ad for this ad group from showing on a term as general as “guitars.”

A searcher who searches for as general a term as “batteries” is most likely looking for double or triple-A’s.  So, that’s even a worse situation to have our ads show in.  And imagine getting curiosity clicks from those impressions!  What a waste of money!

Therefore, we want to make sure that our ads are only showing on queries that include searchers looking for specifically what our ad offers.

Now, of course we don’t want to add the terms “guitars” or “batteries” as negative keywords to our ad groups because then our ads won’t show up on any terms containing these words.  So, how do we keep from showing up on the general terms while still showing up on targeted terms with those specific keywords in them?  We add the specific phrases that we don’t want our ad to show on to our ad group or campaign as negative EXACT match keywords.

By adding “guitars” or “batteries” as negative exact matches, our ad will not show up on the general queries “guitars” or “batteries,” but will still show up on the queries “gibson guitars” and “atv batteries” like we originally wanted them to.   Once again, we’ve eliminated more wasted clicks from the mix.  Therefore, we should see our conversion rate and cost per conversion metrics in these ad groups improve as we continue to focus on getting only the most relevant visitors to our website and more intelligently spending our precious PPC budget.

Don't Use the PPC Budget Tool

Here’s a statement that might shock some PPC managers:

If it is an appropriate time of the day for your ads to show, you never want them to be shut off because your account has hit its budget. If this is happening, you are not spending your money as wisely as you could be.

Let me say that another way: you don’t want your campaigns to hit their daily budget.

Now you’re thinking questions like…”Huh, don’t I want to spend my money to get visitors to my website? Isn’t that the point of PPC advertising?  If I don’t have a budget, how do I keep from spending too much?”  The short answer is bid less.  Let me explain the longer answer with a very general description.

If you’re spending $2 per click and your daily budget is $200, then the most clicks you can get is 100.  After you hit 100 clicks, your ads are turned off and don’t show the rest of the day.  This means your ad is not collecting as many clicks as it could be. Since you undoubtedly have to be on some kind of budget, you don’t want to just let your ads run and spend out of control without considering ROI. Instead, you want to control your spending with your bids.

If you lower your bid to say $1.50, then you could theoretically get 133 clicks before your ads are turned off.  If you are still hitting your budget, lower your bids again.  If you spend $1.00, you could get 200 clicks before your ads are turned off, and so on…

What you want to do is find the sweet spot where you are spending just under your daily budget on a consistent basis.  This is the spot where you will get the most clicks for your budget.

With this simple experimentation method, you’ll find the spot where you can gain the most visitors for your money given your account performance and you’ll never need a Budget Tool again.  And of course, the more visitors you get for your money, the more conversions for your business.

Then, you can look at your ROI over time and decide what to do with your bids to maximize profit.