Google Adwords Optimization
All the data you are getting from conversions tracking should be
used to increase your ROI (Return on Investment. We have already
explained the Peel
and Stick strategy and it must be the foundation on which you
build your campaigns. Now is the time to tell you that the data for
the Peel and Stick strategy comes from Conversion reports. So, after
you set
conversion tracking, take the time to read these reports and look
for the following:
1. Check If Exact Matches Convert Better and If They
Do, Set Higher Bids on Them
We told you earlier to bid higher on exact
matches because basically exact matches bring better results.
However, don't take this for granted � while this might be
generally true, you can never know for sure, if your exact matches
are doing as expected or not. This is why it makes sense to check
regularly in your conversion reports, if your exact matches are doing
better or not.
If they do convert better, you can set higher bids. However, don't
forget to check again because even with higher bids, you might still
be getting the same amount with clicks, but only you are paying more
for them now. Constantly monitor the conversions and make the changes
in the bid amounts as required.
2. Find Profitable Keywords and Bid Higher on Them
Exact matches might be a usual winner but there are also other
keywords that might work well for you. Browse your Conversions
reports to find these keywords and bid higher on them. Similarly to
the case with exact matches, don't forget to check if the new higher
bid amounts are bringing you more clicks or simply drain more money
from your budget.
3. Get Rid of Keywords/Ad Groups with No/Low
Conversions
Similarly, when you look at your Conversions reports, you will
find keywords that have no or low conversions. If these keywords are
attracting a high number of clicks, or if they are high-bid keywords,
it is even worse because they are costing you a lot while bringing
your nothing in return, so find these keywords right away. You might
want to remove them asap but don't do it right now � analyze a bit
first!
Sometimes the reason why a good keyword/ad underperforms might be
a really illogical one � for instance, if you are bidding too high,
you might be attracting click-addicts, not people who are really
interested in your product. In this case you should first try to
decrease your bid, so that your ad gets far from the first position.
When your ad is 3th or 4th, this drastically could decrease the
number of clicks you are getting but can lead to a better
conversions/profit ratio.
4. Spot Keywords/Ad Groups with Low Profit
You might have decent conversions but this doesn't mean you are
making a good profit. For instance, if you make $5 per conversion and
1 in 10 clicks converts, you can't afford to spend more than $.50 per
click because with 10 clicks at $.50 you are simply breaking even. Of
course, breaking even is better than losing money but this is not the
point.
So, spot these keywords/ad groups that make you under or slightly
above what you have invested in them and pay them more attention. You
can try bidding lower, so that you spend less per click. You can also
try an alternative title and/or a description and see if this leads
to improvements or not. If nothing helps, just get rid of these
keywords/ad groups and concentrate on the ones that do bring you
money.
5. Check If Display/Search Networks Work for You
One more thing you can do with Conversions reports in order to
optimize your ROI is to check if Display/Search networks work for
you. As you probably guess, there isn't a general rule here � for
some campaigns, ads, and keywords both networks can work more or less
well, while for other campaigns one of the networks might be just
dead in terms of clicks, conversions, and profits. Just monitor your
performance and adjust your efforts accordingly.
6. Beware the Law of Dropping Returns
As with any kind of investment, the more you spend doesn't mean
the more you earn. We've mentioned it a couple of times throughout
this chapter but since this is way too important, it deserves a
separate section.
First, as we already told you, the first (i.e. the most expensive
position) for a keyword frequently has poor conversions. The reason
is that the first position is most visible � by your potential
clients but also by everybody else. This is why it attracts lots of
clicks. Unfortunately, most of them are just random clicks that don't
convert.
Basically positions 2 and 3 work better. They aren't that visible
and don't attract that many random clicks. Sometimes (for Search
ads), positions 4 to 7 outperform the first three positions. It is up
to you to discover what exactly is applicable in your case. Play with
your bid amounts up and down and see which bid amounts (and
positions) yield the best results and stick to them, at least for the
time they perform that well.
The amount you pay per click isn't the only factor that determines
your position. As you will see in the next chapter, your Quality
Score matters a lot not only for the position your ads appear in.
7. Know the Market Boundaries
One more reason to see dropping results is that you've reached the
end of the market. You might ask how this is possible. Pretty simple
� your good keywords have only a finite number of clicks they can
attract. This is especially true for long tail, niche keywords that
have really a limited search volume.
For instance, if 10,000 people a month are searching for your
keywords and only 1% of them click ads, no matter how relevant the ad
is, there are just 100 clicks a month for this keyword. So, in
theory, even if you double your bids and manage to attract all clicks
(leaving nothing to your competitors, which as you guess is unlikely
to happen in practice), you can't go above 100 clicks simply because
this is all that's available on the market.
The strategies listed in this chapter are not all you need to do
in order to optimize your ROI. For instance, testing is one more
approach you can't do without. Because of its importance, testing is
explained in more detail in a separate
chapter later in this tutorial.
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