PPC marketing is an ocean in itself, be it a professional marketer or a rookie, everyone has a plethora of questions, answers, and opinions. To help fellow PPC marketers find their ground, AdNabu went live answering questions on an AdWords webinar hosted by Leadsquared titled Google AdWords Tutorial – A Comprehensive FAQ for PPC Marketers.
Around 100 odd PPC marketing related questions were answered in this AdWords webinar by CEO of AdNabu, Salil Panikkaveettil. The key takeaways from the webinar are:
- How to identify and filter the right keywords for search campaigns?
- Multiple strategies in campaign creation and structuring.
- The correct way to optimize campaigns.
- How to properly maintain search campaigns?
A gist of some noteworthy questions from the AdWords webinar are listed below.
Table of Contents
- 1 A gist of some noteworthy questions from the AdWords webinar are listed below.
- 184.108.40.206 Why do Single Keyword Ad Groups (SKAG) have more efficiency? Which match type should be used? Does it impact impression count as well?
- 220.127.116.11 Sometimes in CPA, whatever we put as the targeted Bid, the end cost goes more than that of a CPA? How to control this? [E.g. I put a CPA as 50 but the end value goes up to Rs 70]
- 18.104.22.168 How much should a SaaS startup (whose buyers are of a traditional mindset, i.e not technically savvy) spend in the first 6 months on AdWords?
- 22.214.171.124 For B2B campaigns, we need to target ‘Industry’ and ‘Job Roles’ which can be done on LinkedIn. Does Google provide any such filters?
Why do Single Keyword Ad Groups (SKAG) have more efficiency? Which match type should be used? Does it impact impression count as well?
There are many reasons for its high efficiency. In simple words, because you have just one keyword and a very relevant ad copy, the relevance of the ad would be more, and so would be the Quality Score of the keyword. This would obviously lower your impressions. However, the CTR would be higher because of high relevance between search term, keyword, and the ad copy.
Which match type you should choose would be decided by variations of tests and measuring the performance of your ads. Start with broad match modifier. If you are getting irrelevant searches, then mark negative keywords, and try using a phrase or exact keyword instead – testing would give you a better idea of what to use. For consumer businesses, like e-commerce, this ad structure can become very hard to manage, however, it is one of the most efficient ones.
Sometimes in CPA, whatever we put as the targeted Bid, the end cost goes more than that of a CPA? How to control this? [E.g. I put a CPA as 50 but the end value goes up to Rs 70]
It’s like trying to predict the future. That will happen with any system. In any kind of AdWords management tool, like Google AdWords conversion optimizer or AdNabu conversion optimizer. But all these systems essentially try to predict the future by looking at past data. This might not give you accurate results always.
But, if it’s 50 and it’s showing 70 for you, and if you have not made any landing page changes or ad changes, then it’s not an ideal situation. Maybe you should go back to manual CPC bidding for some time, increase the number of conversions and then go back to CPA bidding because 50 to 70 is an increase of about 40%. I generally see an error of maybe 20% but 40% is a little too much.
How much should a SaaS startup (whose buyers are of a traditional mindset, i.e not technically savvy) spend in the first 6 months on AdWords?
It would depend on your general cost of customer acquisition, and how much is a customer worth to you. If your cost per customer (in Adwords) is Rs 50,000 but the revenue from your customer is only Rs 5000, then it doesn’t make sense. The ideal way to decide a budget is this: Do a calculation based on how many customers you wish to acquire in 6 months and your “lead to customer” conversion ratio – this would tell you how many leads you need to get the required number of customers. Then, you need your landing page conversion rate and the average cost per click. This would tell you how much money you need to generate the number of leads necessary to get “x” customers.
Doing a calculation with these numbers will help you come up with a budget that makes sense for you.
Here’s an example:
All values here are assumptions – you should consider values by looking at your existing metrics.
So let’s assume:-
- Landing Page conversion rate: 10%
- Cost Per Click (CPC): Rs 150
- Lead to customer conversion percentage: 3%
- Click-Through Rate (CTR): 2%
- Impressions: 2000
Using basic formulae, we arrive at:-
- Clicks = 2% (CTR) of 2000 (Impressions) = 40 clicks
- Leads = 10% (LP Conversion rate) of 40 (Clicks) = 4 leads
- Cost = Rs. 150 (Cost per click) * 4 (Total Leads) = Rs. 6000
- CPL = Total Cost/Total Leads = Rs.6000/4 = Rs. 1500
- Customers = 3% (Lead to customer conversion percentage) of 4 (No. of leads) = 0.12
So, to get at least 3 customers,
- No. of leads = (4/0.12)*3 = 100 leads
- Cost = 1500 * 100 = 150000
So, your campaign budget should be minimum Rs 1,50,000, to generate 3 customers. To reduce your campaign budget, optimize your campaign well enough so as to improve your conversion rate, and lead to customer conversion rate.
In display campaign, you can choose affinity or in a market audience but specific industry or job role can’t be done in Google AdWords. You can’t target a particular company. You can target keywords that these individuals might search for. Facebook is a different medium. Google Search is a different medium. LinkedIn is a different medium. There are some use cases where LinkedIn ads might work best. There are some use cases where Google Ads might work best. And there are some cases where Facebook might work best. You have to identify what works for your company.
If you are selling to very targeted individual positions, keep in mind that LinkedIn CPCs are really really high. But if you have a very high ‘customer value’, it makes sense to invest in LinkedIn ads also. But it’s a totally different medium. You cannot compare PPC with LinkedIn ads.
Do let us know what topics you would like us to discuss about, we will get back to you with that.