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5 Best Ways To Manage PPC Campaign Performance Effectively

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When the marketing budgets of small and midsize businesses were analyzed at the end of 2013, it was found that nearly 25% of the Google AdWords budget was being flushed away owing to managerial and strategic errors. Wrong PPC campaign not only leads to wastage of huge marketing budget but also losing the ground to the competitors. It is highly critical to measure the PPC campaign performance on a continuous basis so that the campaign keeps evolving and keeps on becoming better. The following 5 ways can help in tracking the PPC campaign for a business and manage it:-

1) Manage High Quality Score (QS) – Quality score is a measurement and evaluation of the relevance of ads to a viewer. Google measures the quality score based on several factors like keywords, landing page quality, relevance to the search query, applicability to the target group, geographic performance and some other factors. It has a huge impact on the ad placement, ranking and cost for a business.

A high quality score brings in the following benefits:-

  • Low Ad Auction Price – It is easier and cost effective for a keyword to enter an ad auction if its quality score is high.
  • Reduced Cost Per Click – Quality score is inversely proportional to the cost per click expense. Higher the quality score, lower is the cost per click of the ad.
  • Improved Ad Position – High quality scores lead to higher ad position. It means that ads show up higher on a page if the keyword has a high quality score.
  • Provision For Ad Extensions – Ad with a higher quality score becomes eligible for extensions and other ad formats such as site links.

The best practice to raise the quality score include effective organization of the keyword database and writing compelling and relevant ad text.

2) Improve Click Through Rate (CTR) – Click through rate is an indicator of whether the keywords and ads are appropriately targeted towards the right audience set. Effectively, it reveals whether the ads are heading to the potential customers or not. A low value of CTR means that the ads are not resonating with the choice of the customers.

Click through Rate = Clicks on the ad / Impressions on the ad

A high value of CTR leads to a higher quality score leading to lower CPC and more prominent ad positioning resulting in competitive advantage for the business.

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The above chart shows the direct relationship between the top keywords and CTR. It can be observed that right selection of top keywords leads to a higher value of CTR.

3) Readiness For Mobile Devices – Mobile searches are increasing at a tremendous rate of 200% year on year, which will dethrone desktop searches in the next 2 years. It has been found that mobile searches have higher action intent and convert into the final purchase quickly with 55% conversion rate within the first hour. Another advantage of mobile search is that mobile CPC is lower than desktop CPC.

Businesses need to adopt best mobile advertising practices such as mobile text ads, mobile site links and mobile call extensions to make their presence felt over mobile devices. They can’t afford to miss on opportunities to optimize their mobile ad performance.

The present spends by devices is as shown below:-

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3) Using Negative Keywords – Negative keywords are one of the most critical yet overlooked tool to improve the performance of a CPC campaign. Negative keywords are instrumental in exclusion of keywords which lead to clicks, but poor conversion rate. Such keywords lead to a significant wastage of AdWords advertising budget. This is an important metric which needs the involvement of industry analysts and macro level bench-marking.

The money saved by adding negative keywords is also referred to as wasted spend. Wasted spend can be calculated by tracking the number of negative words added to the ad campaign and analyzing the impact of the reduction in the no. of clicks and loss of sales. If the money saved by the reduced no. of clicks is more than the loss of sales, it can make sense to keep the keyword as a part of the negative keyword portfolio.

5) Adherence To Best PPC Practices – Some PPC practices help in uncovering platforms to optimize network targeting, conversion tracking and geographical targeting. The following best practices can help businesses to create and run profitable campaigns:-

  • Network Targeting – The campaign must be customized for specific networks, i.e. for both search and display networks.
  • Geographical Targeting – The campaign must be focused and targeted the profitable and relevant markets.
  • Conversion Tracking – The keywords which lead to the maximum generation of sales and those which are proving to be redundant must be monitored and analyzed regularly.
  • Language Targeting – The right language must be used based on the audience being targeted.
  • Broad Match Type – Broad keywords must be utilized for better control over the search results and clicks. It leads to time savings on building keyword lists.
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  • There is 1 comment


    • 3 years ago

      Indrajit Goswami   /   Reply

      Higher quality scores definitely benefit the marketer. But how does it benefit Google Adwords? How could you save money by adding negative key words? Would you kindly give an example of broad key words?

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