3 Techniques That Will Double Your Adwords ROI
Posted by Guest Author on December 6, 2013 in Marketing, PPC [ 0 Comments ]
Effective paid search advertising is imperative for the success of any eCommerce website. PPC marketing is a very effective means of advertisement if its potential is strategically harnessed. You must identify and focus your campaign upon keywords that result in the highest revenue to maximize your ROI. Considering the buyer’s intent, the revenue generated, and your target demographic for keywords can dramatically improve your Adwords campaign.
Focus on “Buyer’s Intent” Rather than Volume
When you conduct your keyword research, it’s seems sensible at first glance to target keywords that yield the most volume, aiming to send thousands of visitors to your site. And for high converting online stores, getting as much traffic as possible is the goal. However, it’s important to remember that traffic does not necessarily equate to revenue on all eCommerce sites. Because conversions and sales take priority over simple click-throughs, you need to seek high converting keywords as well high traffic keywords.
Google does not provide keyword conversion data, so it’s necessary to make your own inferences on clicks that are likely to convert and subsequently evaluate the resulting revenue from these keywords. Fortunately you can familiarize yourself with the intent of the search, otherwise known as “buyer’s intent” and use this concept to identify keywords that are likely to result in a purchase.
For example, assume that you have an eCommerce site that sells fishing boats and kayaks. Your keyword research identifies that “kayak fishing” has 12,100 monthly searches, and you assume that focusing on this keyword will send your sales through the roof. However, what you’d be missing in this situation is that prospects searching for “kayak fishing” may still be in the research stage and seeking to learn more about kayak fishing or kayaks in general. Contrastingly, the similar keyword “fishing kayaks for sale” yields only 2,400 clicks per month, but has a much more obvious buyer’s intent. These consumers are past the research stage and ready to buy.
It’s also important to note that high-volume keywords generating a large number of clicks are more expensive. By focusing on “kayak fishing” in the above example, you’re not only selecting a poor conversion keyword, but are also paying substantially more per click. This can have dire consequences for your Adwords campaign, as you’re spending more and getting less in return.
Focus on Revenue
There are many desired actions a visitor can take on your site: connecting with your business socially, sharing products, and signing up for your email list – but the ultimate action is getting the sale. Most online retailers tend to track only clicks and conversions, as these are the Google metrics businesses are most familiar with. However, a successful conversion does not take the revenue generated from the sale into account. For example, a keyword that nets $1 per sale is given equal priority to one that nets $100 per sale if successful “conversion” is the only parameter taken into consideration.
Fortunately, Google provides tracking resources (Value Tracking) to measure the revenue that each keyword generates based upon values that you input. This allows you to see not only which keywords bring targeted traffic, but also which keywords bring in maximal revenue. Use this tool to focus your ad-spend on keywords that successfully generate a large amount of revenue.
Attract Your Target Demographic
Demographics become very important when considering the revenue generated by a successful conversion. Most average-size eCommerce businesses serve a niche market with a somewhat narrow customer profile, making demographics exceptionally important for these businesses in particular. Effectively bringing your target demographic to the right product when they’re ready to buy is what generates revenue and maximizes the ROI of your PPC campaign.
For example, imagine that you sell watches online, and have products that target both average and luxury consumers. You may see more visits and sales from high volume keywords targeting average consumers that would buy “leather watches” or “Fossil watches”, but a less-used keyword such as “luxury timepieces” may bring in more luxury consumers. To compensate for volume, let’s say that you sell 4 Fossil Watches at $99 each, which brings $396 in revenue – not bad. However, if one luxury watch sale brings in $7,995, it’s more effective to allocate your ad-spend to keywords such as “luxury timepieces” and profit more.
It’s hard to imagine that these valuable concepts are so often overlooked in Adwords campaigns. However, just because they’re commonly ignored doesn’t mean that they’re unheard of. Experts in the PPC industry such as Finch.com have been preaching this for years, and the positive results can be staggering. A few simple tweaks in your Adwords campaign can send your revenue sky-high and increase your ROI exponentially.
Bio: Prior to founding Finch, Bjorn Espenes co-founded Infopia, Inc., a SaaS eCommerce platform for the SMB/mid-market, which captured over $1B in revenue for its clients in online marketplaces such as Amazon, eBay, and Google.
(Image: samuiblue via freedigitalphotos.net