Justin Miller

Achieve PPC Success by Working Backward

July 10, 2013 by Justin Miller Leave a Comment

If you are measuring your PPC Campaigns to monitor their success, then you know that there are a lot of metrics to consider. There are the straightforward metrics (Impressions, Clicks, Cost, etc.), the calculated stats (Cost/Click = CPC, Click/Impressions = CTR, etc.), and now there are even assisted metrics (referring to Impressions and/or Clicks that eventually lead to a Conversion.) With so many different ways to measure your PPC, it is not realistic to attempt to be the best (whether that is highest or lowest) in every metric. Instead, you will need to focus on specific metrics and measure your success based upon your Key Performance Indicators (KPIs.) However, with so many metrics, which should be your KPIs? This question can easily be answered by determining your Goal, or purpose, for wanting to run PPC.

What’s Your PPC Goal & Strategy?

Before you start paying for and running your PPC ads, you should have a purpose, or goal that you want the ads to achieve. This purpose can range from increasing brand awareness, to generating leads, or driving more online/in-store sales. The fulfillment of this goal will determine if your PPC is a success or if it needs more work. Once you have chosen your PPC goal or purpose, the next step is to figure out a way (strategy) to accomplish it.

Your PPC strategy is simply a more defined method of how to achieve your PPC goal. For instance, if your goal is brand awareness, then your strategy should be to expand the reach and increase the visibility of your brand. However, if your goal is to drive online sales, then you will want to focus and target your PPC efforts towards people who are ready to purchase your product/service online. And, of course, if your goal is lead generation, then your strategy will broadly target people interested in your product/service, as well as similar, related and connected products/services.

What are Your Key Performance Indicators?

Your goal and strategy are now in place, but you still need metrics to measure to ensure success. The best and easiest way to determine which metrics to monitor for success is to work backward from your goal. Ask yourself, “What does the user have to do or go through to accomplish my goal?” Using increasing online sales as an example, the user would have to:

Purchase online [Conversion]
Browse & Select a product/service
Arrive at your website [Visit]
Click on one of your Ads [Click]
See one of your Ads [Impression]
Conduct a search that would trigger one of your ads

As you read through this list, certain metrics, your KPIs, will begin to stand out. First, an Impression is needed, then a Click which leads to a Visit, and finally a sale (Conversion.) After figuring out the straightforward stats, look into the calculated stats that would help you achieve your goal. In this case, Click Thru Rate (CTR = Impressions/Clicks) would show that quality of your targeting efforts. A low CTR indicates that you are getting Impressions, but either to the wrong people, or your competitors are getting the Clicks rather than you. Another calculated metric (via analytics) that you will want to see is your Bounce Rate, which is the percentage of visits that leave your site after viewing only 1 page. Because online sales require visiting multiple pages, your Bounce Rate will reveal Visits that did not turn into sales.

After looking at those that did not make a purchase, look into your Conversion Rate (Conversions/Clicks.) This metric will, again, validate your targeting efforts and give you a success rate. Additionally, do not forget to watch your Cost. Keep track of Cost per Click (CPC) as well as Cost per Acquisition (CPA) – this is the same as Cost per Conversion, but CPC was already used. Lastly, you should also be tracking the value of your Conversions to compare it to your Cost and make sure that you are obtaining a positive ROI. This process will be different for each of your PPC goals, but is a crucial step to ensure that you are measuring the correct metrics towards your PPC success.

PPC Success – Backward is the Way Forward

Success is no accident. It requires goals, strategy and KPIs measurements. For PPC, this requires starting with your goal and working backward through a user’s process to accomplish it. The important metrics, or your KPIs, will be clear once you determine the steps people have to go through to achieve your Goal. This process may seem tedious, but is absolutely mandatory to achieve success. Of course measuring is not the final step. If something isn’t working, adjustments need to be made, but without measuring (and measuring the correct metrics) you will never know why you did, or did not, achieve your goal.

Making a Smooth Transition to Mobile PPC

April 11, 2013 by Justin Miller Leave a Comment

If you are running Pay per Click ads using Google AdWords, you’ll need to be ready for your ads to start showing up on smartphones. Once yourLegacy Campaigns are upgraded to the Enhanced Campaigns, your ads will begin showing on mobile. Before this happens though, there are a few things that you can do to prepare.

Targeting Devices (or not)

First off, if you absolutely do not want to be advertising on mobile at all, there is a way to do so within Enhanced Campaigns. The Bid Adjustment feature allows you to target specific devices. By setting your bid adjustment to -100% for mobile devices, you will prevent your ads from being shown on phones. But with the noticeable rise in smartphone use, are you sure that is the best marketing decision?

Mobile-Optimized Ads

Another option is to prepare our ads accordingly. A great way to do this is to utilize the Call Extension. Although this extension can be used to target all devices, it is best suited for targeting mobile users. This extension will allow searchers on mobile devices to not only find you, but connect with you via a phone call with a single click. Another additional feature that comes with this Enhanced Campaigns extension is day parting. This means that the call functionality can be set to coincide with your business’s operating hours. On top of all that functionality, Google has also dropped the additional charge that formerly came with using a Google forwarding number.

Using the steps above, you can make sure that your PPC account is ready for the Enhanced Campaigns upgrade. These new features and extensions allow you to reach new customers no matter what device they’re using!

We’d love to hear which aspects of AdWords Enhanced Campaigns you’re using to improve your PPC ads. Let us know in the comments below!

Enhanced AdWords Campaigns – Helpful or Not?

March 6, 2013 by Justin Miller Leave a Comment

Some Background

By now, I’m sure you’ve heard of Google’s new enhanced campaigns. These will “simplify” your PPC accounts by allowing you to combine similar Campaigns in to one Campaign without losing any unique settings from the various Campaigns.

Enhanced Campaign Features

From the Campaign view, your account will look simpler (less Campaigns), but at the Ad Group level or deeper (i.e. site links & ad extensions) things could get messy and more complicated. Being able to target different devices and locations at different times and bids is very useful. Having all these settings at the same level can even make them more powerful, but probably not simpler.

The Burning Question

So the question remains–are these enhanced campaigns truly helpful? Will having these various optional settings at one location aid the effectiveness of PPC advertising, or in other words increase Clicks and/or CTRs? Or at least will being able to move easily using these setting in conjunction with one another enable better testing and ultimately improved optimization of PPC Campaigns? Although it may take some time before we discover the answers to these questions, one thing is certain, which is that data collection is invaluable to us as marketers. Google AdWords must make sure that we have a method of easily slicing the data into categories (i.e. mobile devices, specific promotions, geographic locations, etc.) in order for these enhanced campaigns to be helpful and in the long run make our lives simpler.

Bidding is More than Just How You Pay

December 12, 2012 by Justin Miller Leave a Comment

CPA or CPC? Which is best for your Pay per Click (PPC) Advertising Campaigns? To answer that, first let’s look at how these two strategies differ from each other.

CPA – Cost per Acquisition (Conversions): You set a target CPA and Google will automatically adjust your CPC bid to keep you relatively close to your target. From my experience, Google has been getting CPA just under the target CPA.

CPC – Cost per Click: This is the more common bidding strategy and allows you to manually or automatically (enhanced) set maximum CPC bids per keyword.

The Case for CPA

Obviously, the first requirement for using CPA is the necessity of Conversion tracking (which should be a priority anyway). But assuming you are tracking Conversions, is CPA your best option? From personal experience, a good campaign for CPA bidding is one that is well established and in a stable market. While implementing CPA strategic bidding, we witnessed a decrease in CPA, which increased profit margins.

The Turning Point

However, once there were changes within the market, such as new advertisers and increased competitors’ bids, the overall performance of campaigns using CPA dropped. Despite using some automatic tools to maintain average position, Google’s CPA bidding style was not able to remain competitive. The Campaign began decreasing in Clicks and Conversions. As a result of the decrease in Conversions, the CPA strategy automatically lowered the max CPC causing the ads positioning to drop, which further impacted the Conversion Rate. The CPA bidding strategy began a steep drop in performance.

The Case for CPC

Once the bidding strategy was changed back to manual CPC, the Campaign regained its positioning in the market, and the Clicks and Conversions increased back to normal levels as well. Although this required an increase in CPC, we were able to maintain the overall CPA at a very close level to the original target CPA.

Conclusions

The end result was no relative change to the calculated CPA, but an increase in overall Conversions. The conclusion is this: Google’s automatic CPA bidding strategy is great to use once your PPC campaign is up and running, but be sure to keep a close eye on it. Increased competition in your market could send your PPC spiraling downward quickly.

Have you had more luck with CPA or CPC bidding strategies? Leave us a comment and let us know!

One PPC Budget to Rule Them All

November 2, 2012 by Justin Miller Leave a Comment

Consider This PPC Advertising Scenario...

If you wanted to set up a Google AdWords Account with 3 Campaigns, and had 1 monthly budget that you were willing to spend across the account, then you would have to divide the monthly spend 3 ways (most likely not equally) between the 3 Campaigns. As the month goes on, 1 Campaign might max out its budget early, while another might not even come close to exhausting its budget. The month ends, and you only spent 2/3 of your monthly budget, but the high spending Campaign only ran for half the month and missed several potential clients.

Before the next month starts, you reallocate your budget. Money is shifted away from the lower spender to the higher ones. As the month goes on, the Campaigns and their spend act differently. The spending is reversed, you try to act quickly and adjust the budgets mid-month. However, the month ends and again you fall short of spending your entire budget. Although under budget can be a good thing, we all know it could lead to budget cuts too.

Sharing AdWords Budgets

Luckily Google Adwords has taken the guessing game out of budgeting for Campaigns. The shared budget concept within AdWords allows you to link Campaigns’ budgets together. This means that multiple Campaigns will pull for the same budget, rather than relying on just their own budget. So, if the above scenario occurs, the higher spending budget takes extra from the shared budget than the lower spending campaign. If the spending trends change, the budget gets allocated accordingly. As the PPC Account Manager, you do not have to stress over trying to predict the spend of each Campaign from month to month.

Although the Title suggest one budget for all Campaigns, that is not recommended, as different Campaigns spend at different rates. Try testing shared budgets between similar campaigns or campaigns that share the same goal. Let us know your test results, and whether shared budgets helped your PPC performance.

Rebranding of adCenter & Search Alliance

September 26, 2012 by Justin Miller Leave a Comment

I’ve just finished taking the Bing Ads Accreditation exam , which is free until the end of September. Microsoft is graciously offering this exam for free as part of its rebranding promotion, which includes the renaming of adCenter to Bing Ads and Search Alliance to Yahoo! Bing Network. Offering something for free is always good at getting attention; in my opinion however, Microsoft did this a bit hastily.

What’s In A Name?

Image courtesy of InlineVision.com

The first issue with offering the Bing Ads test for free is the lack of updated questions. Sure, there are a few questions on updates to adCenter/Bing Ads features. The problem is that throughout the test the questions constantly reference adCenter, not Bing Ads! This also holds true for the Yahoo! Bing Network, which is never mentioned in the test either. Microsoft, if you are offering the test free for rebranding purposes, it makes more sense to make sure you call your own advertising platform (Bing Ads) and Network (Yahoo! Bing Network) by the correct name.

PPC Done By the Books

On top of missing a great opportunity to drill the correct/new name of Bing Ads and the Yahoo! Bing Network into the accredited professionals’ heads (assuming they pass the exam), the substance of the test still seems to be mostly textbook definitions. The only exception is when Microsoft starts asking about how to navigate and use their desktop editor, which is still called adCenter desktop in the test. Although this tool is useful for agencies who manage multiple accounts, it is not a necessity for everyone that manages a PPC campaign on Bing Ads to download and use the desktop editor.

As a recently re-accredited Bing Ads professional, I would love to hear your feedback on the rebranding and renaming of Bing Ads and the Yahoo! Bing Network. Also, if you have taken the Bing Ads test, please share your thoughts about it in the comments section below.