Reducing your wasted ad spend can be achieved by eliminating low-performing search terms. With the proper analysis, you can reduce the money you are wasting and determine which terms have value, if you know what you are doing.
A good portion of digital ad campaigns budgets is being wasted. U.S. marketers wasted $7.4 billion last year on inferior quality ads, according to a new report from Forrester.
Time after time we see clients that are wasting money on ad spend without even knowing it. A quick analysis can easily track down and provide an estimated $$$/month that is currently being wasted on ads that don’t produce a single conversion.
Some clients have tried increasing their budgets in order to improve conversions and profitability, and the result is more traffic and less profit. The data used needs to be accurate and targetable.
Let’s take a quick look at the steps involved in putting together an advertising campaign that will be effective and not just about clicks and views.
1. Pulling the right data is crucial to establishing a viable background for drawing conclusions to work from. Looking at impressions, clicks, cost, avg CPC, conversion rate, phone calls, total conversion value, conversion value/cost…etc. go a long way helping find the problem.
2. Next, we start with data segmentation and search term reports. These reports allow for a breakdown of the overall flow of the account by search terms (keywords). By analyzing the search terms within the account, we can quickly figure out where wasteful spend is accumulating.
3. Going a step further, we will analyze the overall trends based on specific areas such as user device type, ad schedule (time of day or week that ads are running), or location. This information can be very valuable to determine if the problem is a result of, for example, poor conversion rates or low ROAS from mobile, or how your ads perform at certain peak times of the day.
4. Diving further into search query analysis is a terrific way to determine which search terms are basically worthless. This a great way to really find out what is going on with your account. Start filtering out keywords with conversions so you can quickly view only the keywords without conversions. This usually adds up to substantial savings regarding your ad budget. Those savings can make even a subpar ad campaign into a profitable one.
While this is just a quick overview, this sort of analysis done by a PPC expert can save you money on your current ad spend and provide a wealth of knowledge going forward, especially leading up to the holiday shopping season. If you take the right steps from the start then chances are you will have a profitable campaign. Learn more about the steps to running an effective paid advertising campaign today.