The PPC Metrics You SHOULD Be Focusing On

Last Updated: October 13, 2016

If you’re handling your own PPC with AdWords or Bing Ads, hats off to you! It’s not an easy undertaking. However, it’s certainly doable once you become more familiar with industry vocabulary and best practices.
Learning the right terminology and approach can take time, though. One common stumbling block, even for experienced DIYers, has to do with metrics. Oftentimes, business owners are focusing on the wrong PPC metrics and therefore aren’t getting the most out of their campaigns.

Look Beyond Traffic-Based Metrics

At the end of the day, what’s the goal of your PPC campaign? Our guess: profit.
For this reason, our first suggestion is to stop focusing so much on traffic-based metrics. These metrics are all that’s included in the simplified AdWords dashboard, which is why so many business owners don’t look beyond them. These include:

Impressions
Clicks
CTR (click-through rate)
Average CPC (cost per click)

To be clear, it’s not wrong to look at these metrics—it’s just limiting to your overall understanding of your campaign. These traffic-based metrics only tell you how often your ads are being viewed and/or clicked. And while traffic is definitely something you want to pay attention to—after all, you need people to see your ads in order to interact with them—it doesn’t paint a full picture of how well your campaign is actually doing. Maybe you’re not getting a ton of clicks on a certain campaign, but if you’re getting a lot of paying customers out of it, who cares?
That brings us to what you should be focusing on.

Related: The Four Most Commonly Misunderstood PPC Metrics

Track Your Ads’ Conversion Rates

When you want to measure how well your ads are performing, look at the conversion rate. This is the only way to tell whether your campaigns are actually helping your business make money. It’s one thing for people to click on them, but that’s not enough: you also need to be converting those clicks into leads. Clicks alone aren’t going to help your business grow (unless, of course, your only goal is to create brand awareness).
You can set up conversion tracking on Google AdWords and Bing Ads yourself. Then, just sit back and check the reports as they develop.
Conversion tracking will show you the following metrics:

Cost per conversion: How much each conversion costs (on average).
Conversion rate: How often a click leads to a conversion.
Value per conversion: How much each conversion is potentially worth (you fill this out yourself).
Total conversion value: The total value of all conversions.
Conversion value per cost: How much each conversion is worth compared to how much they cost.
Conversion value per click: Total conversion value divided by total number of clicks.

And don’t forget to track phone leads in addition to online leads (newsletter signups, form submissions, purchases, etc.). For many businesses that provide local services like accounting, massage therapy, HVAC, and so on, the phone is the primary way customers contact them.
If you’re banking on phone calls, then you definitely need to incorporate phone tracking into your conversion monitoring. Assign a unique call-tracking number to each campaign so you can identify which ad generated which lead.

Go a Step Further and Calculate ROI

If you really want to be a PPC rock star, then you can calculate the ROI of your campaigns. Doing so will tell you which ads are actually generating money for your business (as opposed to just traffic or leads).
Calculating ROI is rather complicated, and there are several different methods you can use. One helpful tool is a customer relationship management (CRM) software that tracks all of your leads and sales data. A CRM will prevent you from having to record everything manually.
Regardless of where or how your sales data is stored, you can calculate your ROI by comparing how much you spent on each campaign (including cost per click and cost per conversion) and how many sales dollars it generated. The result is a concrete number that tells you which PPC campaigns are most contributing to your bottom line.

All Metrics Fit Together

There’s no single metric that tells the whole story on its own. Likewise, there’s no metric that you should just flat-out ignore, either. Look at all of the metrics together like pieces of a puzzle.
For example, you can tell if something is wrong with your landing page content if you have a high CTR (meaning lots of people are clicking on your ads) but a surprisingly low conversion rate. Clearly, people are interested in your ad but are then turned off by your landing page. Now you know it’s time to make that content more compelling so your visitors will feel motivated to fill out a form, contact you, or take whatever action is your goal.
When you put all of the above information into practice, you’ll be in a much better position to maximize your conversions and get more bang for your PPC buck.
Still unsure of the best strategy for weighing your PPC metrics? Would you feel more comfortable in the hands of a professional? The team at Prospect Genius offers effective pay-per-click marketing management and transparent pricing. Call now to find out how we can help.

Get Ready for Bing's Expanded Text Ads

Last Updated: August 25, 2016

Remember a few weeks ago when we reported on Google’s new Expanded Text Ads?
Well, Microsoft very quickly jumped on the bandwagon: On August 23, Bing started testing its own version of Expanded Text Ads. Right now, Bing’s Expanded Text Ads are only available as a pilot test for advertisers. However, you can assume Bing will follow Google’s lead on this, as it often does. That means Bing will start implementing these longer ads to a wider user-base relatively soon. As we noted previously, Google will likely phase out traditional ads and replace them with Expanded Text Ads later this year.
Will Bing make similar sweeping changes that soon? It’s unlikely, considering Bing is only in the testing stages right now. But it’s a matter of when, not if.
What should you take away from this? The writing’s on the wall: The future of paid advertising is Expanded Text Ads. If you’re a PPC user, you better start getting used to this new format.
Read more about Bing’s Expanded Text Ads on Search Engine Land: “Bing Ads Opens Pilot Access for Expanded Text Ads.”

Four Ways Your PPC Services Could Be a Rip-Off

Last Updated: July 13, 2016

“Where’s my money going, exactly?” If you’re paying an online advertising company for PPC services, this is a question you should be asking.
A disheartening number of providers don’t offer any type of transparency when it comes to billing, clicks, or campaign performance. Unfortunately, there are several ways your PPC services provider could be ripping you off without you even realizing it. When PPC providers don’t offer transparency, you pay dearly.
In this post, we’ll highlight a few of the hidden dangers that result from a lack of transparency in PPC advertising. Be on the lookout.

1. Mysterious Management Fees

It’s not uncommon for online advertising companies to charge a management fee for PPC services. However, the problem lies in whether they disclose their management fee to you.
Far too many providers pocket a large chunk (sometimes over 50%!) of your budget as part of their management fee—without telling you. This could mean less than half of the money you’re paying is actually going toward clicks.
But they won’t tell you this. Usually, the best you can hope for is a passing acknowledgment of their management fee’s existence as part of your service charges. It’s rare to have a company tell you exactly what this fee is.
And because of this total lack of transparency, some providers may sneakily pocket more and more of your money while spending less and less on clicks. They’ll squeeze every last penny they can from you before you finally notice a problem and fire them.
Take a look at your last PPC services bill. Did your provider note the exact cost of the management fee? We’re guessing not.

2. No Ability to Check Your Campaign Performance

If you aren’t spending at least a certain minimum amount on clicks (which varies by location and service category), your ads won’t perform. Plain and simple. And if your PPC provider is pocketing half of your budget, there’s a good chance you aren’t spending enough on actual clicks. Diminished performance is the result.
So, to prevent you from detecting an issue with your PPC spending, many providers will try to keep you in the dark. Most often, they do this by not providing access to reports on your campaign performance. This way, you can’t see how much is going toward clicks or how your ads are ranking. When you can’t see these reports, you can’t see how little they’re spending on advertising your company and how much they’re pocketing.
Ask to see a report of your campaign metrics. If your provider can’t give you access to one, that should tell you something.

3. Reporting Only One Metric

Other times, instead of not showing you any performance metrics for your ads, a PPC provider will show you one metric. The problem with only revealing one metric is that you don’t get the full context of that number.
For instance, if your provider focuses solely on click-through rate (CTR), then you miss other important factors, like total impressions (the number of people who saw your ad). Let’s say your campaign has a CTR of 66%. That sounds great, right? Well, it’s great until you realize only 9 people saw the ad and only 3 people clicked through. Conversely, a CTR of 0.5% sounds pretty dismal on the surface. However, 0.5% could mean 10,000 people saw your ad and 50 of them clicked through. Aren’t 50 clicks significantly better than 3?
The lesson here? Context matters. Don’t be fooled by a company that manipulates only one metric so you can’t tell how much money you’re actually wasting.

Read more: “The Four Most Commonly Misunderstood PPC Metrics.”

4. No Control Over When Your Budget Is Spent

Oftentimes, the dollar amount of your total PPC budget is the only say you have. Once you’ve set your budget, you have virtually no control over how and when that money is handled. That’s why most business owners aren’t aware of how their PPC budgets are spent. Some questions to ask:

Is your click budget portioned out so it lasts all 30 days of the month?
Is it exclusively spent during peak days and times?
Is your budget used up all at once?

The timing of your click spend may not be something you’ve put a lot of thought into before, but it actually has a huge impact on your campaign’s overall performance. For example, if your budget is portioned out little by little, and there’s only a small amount of money leftover (after the substantial management fee) for your clicks, then your ads will only run for an hour or two each day. Obviously, this is not going to provide you with satisfying results.
To better understand how your money is being spent, you need to find out when it’s being spent.

How to Avoid Being Ripped Off

Don’t let this blog post scare you away from PPC services. PPC is a super-efficient way to attract leads, even if it’s a little pricey. The trick is to find an online advertising company that’s honest and professional.
For instance, at Prospect Genius, we do charge a small management fee for PPC services; however, we tell you exactly how much it is so you can see what’s going to Google and what’s going to our team. And if the portion reserved for AdWords clicks won’t be enough to support a strong campaign, then we’ll tell you not to do PPC at all. Why? Because the meager results wouldn’t be worth your investment. Unlike other companies, we refuse to just pocket our management fee while your business flounders.
Furthermore, we provide our clients direct access to campaign reporting. With these reports (easily accessible by logging in to your portal account), you can see how much we’re spending each day, your average ad position, and even what each ad looks like! We also develop an ad schedule with you, so you can have a say in when your ads appear.
Shed some light on your PPC services! Talk to your provider to get some answers. Or feel free to get in touch with Prospect Genius to discover how we’re different.

How to Make the Right Change in Advertising for Your Small Business

Last Updated: January 21, 2016

Are you planning on switching up your online advertising? Nervous about making the transition? Whether you’re switching to a whole new advertiser or just setting a new advertising goal, taking the next step involves a lot of uncertainty. However, with the right tools and mindset, you’ll be able to confidently change directions and put your small business in the ultimate position for success.

In this post, you’ll discover how to make sure your next step is the right one—no matter which direction you’re headed.
Let’s get started.

What Kind of Transition Will It Be?

First things first: Decide what kind of transition you’re going to make.
For example:

Do you want to transition away from a trackable microsite and build your own, high-level website?
Do you want to shift your focus toward a different kind of campaign, like paid advertising instead of organic?
Do you want to change your advertising provider entirely?

Once you’ve set a specific goal, you’ll be on the right track.

If You Want a Higher-Level Website…

Small business owners often dream of having a dazzling, fully customized website to impress potential customers and blow the competition out of the water. Their budgets, on the other hand, often squash that dream. Most small business owners have to settle for a practical, streamlined website without the bells and whistles.
It’s not unreasonable for you to want a jaw-dropping website for your company. However, you must maintain realistic expectations. If you’re seriously considering upgrading your website and, subsequently, your SEO campaign, then you need to make sure you can afford to pay thousands of dollars per month for top-level web design and SEO.
We aren’t exaggerating. That kind of work costs a pretty penny. Make sure you know what you’re committing to before you make the jump.
In the end, you may be better off asking your current SEO provider if they can add some razzle-dazzle to your site for a smaller price. They just might have a cost-effective solution you aren’t aware of!

If You Want to Shift the Focus of Your Campaign…

Sometimes, it feels like organic advertising moves too slowly. You wish you could strap a jet pack to your campaign. Sadly, until Google launches its new jet pack feature, paid advertising is the closest you’ll get.
Paid advertising, usually in the form of PPC (pay-per-click), generates leads much faster than SEO alone. That’s why it’s fairly common for small business owners to want to ditch SEO and go for PPC, instead.
However, did you know that you can’t just switch from SEO to plain PPC? You can add PPC to your campaign, but you can’t use it on its own. It won’t work. You need SEO along with PPC to boost your AdWords Quality Score; otherwise, you’ll be bidding too much on ads that won’t even display prominently.
If you want to shift to paid advertising, then the first thing you should do is see if your current provider offers a PPC package. This way, you won’t have to completely switch providers. Your current provider already knows all the ins and outs of your business’s online presence and history, so it’s wiser to stay with them if you can.
If your current provider does not offer PPC, then you’ll have to make an even bigger switch…

If You Want to Switch to a New Provider…

Do you feel like your current provider’s limitations are holding you back? Do you feel like you aren’t getting enough out of your campaign? It may be true that your provider can’t deliver the results your small business needs. However, it’s more likely that your feelings are due to a lack of communication, instead.
Before you make any decisions, have a candid conversation with your provider. Whether you aren’t satisfied with your service or you have new goals for your advertising, tell them. Talk about it. They might have the perfect solution for you in their tool kit.
So often, we see clients who are dissatisfied with the direction of their campaigns, only to discover they simply weren’t using the right packages for their needs.
But what happens when your current provider doesn’t have a solution for you?
Transitioning to a new advertiser can be a complicated process; however, it’s well worth it if you find the right advertiser to switch to. So, first things first: Vet your next advertiser thoroughly.
Once you’re ready to make the jump, notify your current advertiser and work with them to transition all of your backlinks. You should also have your web presence cleaned and tidied from top to bottom. Most advertisers offer cleanup services specifically for this purpose.
When you’re organized and forthcoming with your old and new advertisers, the transition process will be relatively pain free.

Brace Yourself for Change

Change is hard. Regardless of your new direction, make sure you’re mentally prepared to navigate unfamiliar terrain. Whether you’re working with a brand-new web designer or setting a click budget for the first time, be open to collaboration and discovery.
And if you do end up switching over to a whole new website and corresponding campaign, be aware that you’re going to see a slight dip in leads as a result. This is because it will take time for your new URL to gain traction with the search engines. Don’t worry, though: It’ll pick up again before you know it.
When you follow our advice, you’ll make a smart decision for the next phase of your small business’s advertising!

With PPC Ads, Users Prefer a No-Brainer

Last Updated: August 13, 2015

Are your PPC ads making users think too much?

In a recent article for Search Engine Land titled, “PPC Ads Not Performing? Reduce Cognitive Load,” Andrew Goodman describes what user-experience experts say is an often overlooked performance factor for PPC. In a nutshell, cognitive load refers to the “amount of mental processing power” required to use a website. Applying this principle to PPC ads, Goodman explains that reducing the cognitive load of your ads will make it easier for users to process your ads and, thus, click on them.
What does “reducing cognitive load” mean in practical terms? Basically, you want to make clicking on your ad a no-brainer. Don’t make the user think. Draw a straight line from their search query to your landing page. Use an explicit and specific call to action. Most importantly, make your ad as simple to read as possible. That means minimizing the number of characters and using white space strategically. Overcrowding an ad with too many words and ideas will increase the ad’s cognitive load, which will distract the user and push them away.
For specific examples of effective vs. ineffective ads, read Goodman’s full article.

Prospect Genius