PPC is different than SEO because you are in more control of where your ads land. Where Search Engine Optimization is intelligently relying on keywords and algorithms, Pay Per Click advertising relies on intelligently paying for prime placement on a page.
This is an equally valuable tactic in marketing because it allows you to target specific audiences by location, interests, associations, and more. You are not only waiting for results to develop, you are being exposed as soon as your ads are live and able to adjust immediately as it’s called for when the market changes. This instant feedback is an important aspect of pay per click advertising.
Most reputable internet advertising firms will monitor referring links in order to eliminate fraudulent clicks. This is done to keep their clients from having to pay for clicks that are generated by competitors hoping to increase your expenses or site owners hoping to get paid a commission. Fraud may be inevitable, but professionals will work to avoid affecting their client’s investment by eliminating the source of the fraud.
PPC can be a defined budget item because even though you pay per click, you can set parameters in maximum spending per month. This is very attractive to those new to pay per click advertising. It’s also easy to track the various types of ads so you can see which are more effective and should be enhanced. Most businesses utilize both SEO and PPC; they are different tactics for marketing and are considered equally important.
For more information on the potential benefits of PPC, a good resource is reciprocalconsulting.com/pay-per-click.php
Some of the most important metrics for pay-per-click advertisers are ad positioning metrics. These can include but are not limited to:
- Click-through rates
- Pages per visit
- Average duration on site
- Conversion rates
Each of these PPC metrics weighed against your ad position can help you save money on your advertising budget. One important way this happens is by gauging your metrics for each ad position relative to other ad positions.
For instance, if you discover that your CTR for position three is higher than your CTR for position one or two, then that’s a huge benefit. But what if your conversion rate is higher for position two?
You have to determine what metric is more important for you in reaching your goals.
If you are not concerned with conversion rate but are concerned with a higher engagement with your visitors, then you might look at your pages per visit and average duration metrics. Adjust your budget to target your ad to the optimal position so that you can reach the highest engagement possible for your ads.
This is no easy task. It does require keeping an eye on your ads and performing some tests to determine the best position for the goals you want to reach.
You can get started with ad position adjustment by consulting with Reciprocal Consulting at www.reciprocalconsulting.com/pay-per-click.php
When it comes to advertising through Google AdWords, nothing is more important than your quality score. Your quality score will determine your ad placement and in turn affect future click-throughs (CTR). If you see your CTR go up and your quality score go down, the first place you should look is your landing page.
Why the landing page?
You should check the landing page because there is a good chance your ad relevance isn’t matching your PPC ad keyword targeting. For that reason, I’ve put together this short list of 3 items that are very important for your PPC quality score.
- Landing Page Relevance – Your keyword must match the keyword targeting in your ad. Relevance also includes making sure the product or service you are selling matches what the targeted customer is looking for.
- Keyword Grouping - Do you have a tight keyword grouping for your PPC campaign? If your grouping is too broad or doesn’t target narrowly enough, that could affect your Google AdWords quality score.
- Landing Page Design – Don’t think design doesn’t count. If you have too many images or videos on your landing page and it loads slowly, that will affect your quality score. If the images and videos don’t look right on the page, that could also affect your quality score.
These are not the only factors that affect Google AdWords quality scores, but they are important.
PPC Hero shares 15 ad networks you can use besides Google AdWords. I’d say you should definitely use the first two on the list:
But you probably shouldn’t give up on Google AdWords either.
The thing about AdWords is it sends the most traffic to your website, if you do it well. Of course, you’ll pay more for clicks too. If you have a small budget, then you might start with Bing and Facebook. Once you increase your revenues enough to increase your advertising budget, then you can move on to Google AdWords.
Another benefit to starting with Bing and smaller ad networks is you can practice your ad writing and landing page skills. Failure will cost you a lot less than it will at Bing. Once you’ve perfected your craft, then you can spend the big dollars.
PPC advertising is only getting better. With Facebook, you can target your ads to specific demographics, which you can’t do with Google or Bing because they are more keyword-based. I highly recommend both approaches. PPC on the search engines is about finding your audience through their search habits. On Facebook, it’s about looking for them by customer persona type.
Smaller businesses don’t have to be left out of the PPC advertising game. Start small and work your way up.
When it comes to paid advertising, most people know about Google AdWords, but that’s not your only option. In most cases, Google AdWords is the most expensive option and therefore maybe not your most cost efficient option. Here are several options you can choose from when it comes to pay per click advertising.
- Bing Ads – Bing Ads is the Microsoft equivalent to Google AdWords. The advantage is you have less competition because most advertisers are using Google AdWords. The downside is you won’t reach the same size market. Bing’s search engine is quite a bit smaller than Google’s. Still, it’s a viable option.
- Facebook Advertising - Facebook has its own advertising model. Ever see those ads on the right side of your wall? You can target your ads demograpically, which is something you can’t do with Google AdWords. The downside is, the keyword targeting isn’t as impressive as with Google.
- Promoted Tweets – Twitter has something called Promoted Tweets. You pay to have a tweet appear in the Twitter stream of people who fit your target profile.
- LinkedIn Advertising – The B2B network LinkedIn also have an advertising model. If you are a business-to-business business, then LinkedIn could be a good alternative to Google AdWords.
If you’re ready to expand your PPC advertising strategy, start with these good Google AdWords alternatives.
Pay per click advertising is one of the most powerful modes of online advertising if for any reason because you can target and re-target in real time and on an ongoing basis. Don’t like the way your advertising is leaning right now? Just tweak your ads, keyword groups, and your targeting efforts and you’ll begin to see instant changes.
One of the best ways to reach your target demographic with PPC is by close and careful monitoring of your keyword groups.
In other words, if you create a tight keyword group that targets a specific demographic and point your ads for that keyword to a common landing page that is targeted specifically for the demographic, then you’ll have a powerful advertising platform. But you need to keep an eye on your keyword group and landing page. This is where you want to do extensive testing and monitoring.
If your landing page, or your ads, are off in any way, you could spend hundreds of dollars on ineffective advertising. The worst thing in the world is to target a specific demographic with a keyword group that sees no conversions.
If you do it right, however, you could see big results from your advertising. PPC is cost effective only if you see results from the money you spend. Keep your ad groups tight and your keywords tighter.
According to Business Insider, Twitter and Facebook are now earning 50% of their advertising revenue from mobile phones. Facebook took 11% of its ad revenue from mobile last year and 23% in the fourth quarter.
Naturally, BI is expecting these numbers to increase. So am I.
What is driving this increase? Native advertising. Not traditional PPC.
Native advertising is advertising that appears in the news feed of Facebook and Twitter users. It’s not something they are looking for, but it appears there based on what they normally tweet or post about on Facebook. It’s a combination of targeted demographic marketing and affinity marketing. And it seems to be working.
With this kind of powerful marketing available to them, online paid advertisers are sure to invest more into the advertising that is effective for them.
Social media advertising provides one advantage over traditional PPC. With Google AdWords, you only reach people who are searching for information related to your offering based on keywords you enter. With social media advertising, you choose the demographic you want to target. It’s more like traditional advertising, putting control back into the hands of advertisers.
Naturally, there’s no perfect advertising medium, but social media advertising represents the best of two optimal worlds. You can target your ads to a demographic you know and you can take advantage of the social media opportunity. Combine them for one great opportunity.
Search Engine Journal published an article today that discusses how the Bing ad tool can be used to make your PPC advertising on Bing and Yahoo! more effective and cost efficient. What I want to discuss regarding the article, however, has to do with the most frequently changed ad campaign changes, according to the Bing ad Editor Tool.
The top 5 most frequently Bing ad campaign items are:
- Ad content
- Negative keyword
- Location targeting
- Negative site
In that order.
This is an interesting list because it appears that keywords are changed a lot. When you consider that negative keywords are keywords you definitely do not want your ads to target, it makes you wonder why advertisers would change them. Are advertisers changing the keywords that are a part of their negative keyword lists, adding new negative keywords, or moving words from the keywords list to the negative keywords list?
Another interesting tidbit here is the location targeting change. Are advertisers changing the locations they want to target, adding new locations, or deleting locations? Probably, all of the above.
It’s hard to tell from this list and the lack of specific data whether advertisers are on the right track or wasting their time and money. One thing is for sure, if advertisers want to be successful on Bing or any other PPC ad network, changes to their ad campaigns are inevitable. PPC requires constant monitoring, and regular changes can be positive or negative.
Earlier this week, Google reported that they are making a change to how they report AdWords quality scores. It’s important to note that this will not change how your quality scores are calculated and therefore won’t affect how your ads are displayed.
This is the kind of change you’d expect Google to make from time to time. It means they are committed to providing a quality advertising product.
Your Google AdWords quality score is represented as a 1-10 number tied to three key aspects of your AdWords campaign – expected CTR, ad relevance, and landing page experience. Let’s analyze these three factors briefly.
Expected Click-Through Rate
Note that your quality score is not tied to your actual click-through rate (CTR) but your expected CTR. This is determined by past click throughs on your specific exact match keyword relative to your ad’s position. You are graded according to “average,” “above average,” and “below average.”
You can affect this measurement through keyword selection. Make sure you use the best keywords for your ad campaign.
This measure is about how your specific keyword relates to the content in your ad. Again, it is measured by “average,” “above average,” and “below average.” If your keyword isn’t specific enough to your ad, then you could be hurting your quality score. Make sure you create tight ad groups.
Landing Page Experience
Your landing page must be relevant to the keyword people use to search for your product or service. It must also match the content in your ad. And it should provide a positive user experience once searchers find your landing page. Is it easy to navigate? Is it organized well and well designed?
All of these factors are important in determining your ad’s quality score. If your Google AdWords quality score dips too low, you could lose your ad placement and end up out-of-sight out-of-mind.
Analyzing keyword profitability isn’t as cut-and-dry as we marketers would like to think it is. That said, there are ways to judge a keyword’s potential profitability, but it involves classifying your keywords into categories.
- Category 1 – Your first keyword category is the low-level keywords that don’t get a lot of click-throughs. Whether we’re talking about PPC advertising or organic search marketing, the keywords in this category historically don’t get click-throughs, however, their conversion rate might be high. In other words, the keywords don’t get a lot of clicks, but when they do they convert them into sales.
- Category 2 – The second category of keywords is the category that gets lots of clicks and only a few conversions. This is a very unprofitable category because you are spending money on those clicks and not getting much of a return on them.
- Category 3 - This is your blockbuster category. These keywords get tons of click-throughs and have a high conversion rate.
So what do you do with these categories of keywords? The first thing you should do is stop using the Category 2 keywords. They are costing you money. The other two categories of keywords may or may not be making you money. That depends on the cost of acquisition per customer.
Categorizing your keywords this way will allow you to eliminate unprofitable keywords early and fast while tweaking your paid and organic search marketing campaigns to improve the profitability on the remaining keywords.
Last year Twitter introduced its advertising program, rolling it out to businesses first then to everyone. We learned that recently they also rolled out their analytics tool publicly.
Obviously, this is a way that Twitter hopes to encourage more users to buy sponsored tweets. I hope it works.
The analytics tool is a part of Twitter’s advertising platform. But you don’t have to be an advertiser to view your stats. You just login and get the data. But be forewarned, it doesn’t tell you much – yet.
What it will tell you, however, is helpful. For instance, you can see how many mentions you’ve had on any given day. And you can also see how many followers you picked up and how many followers you lost. In addition, Twitter will tell you how many faves and retweets each of your tweets have received to date. If your links have been clicked, it will tell you how many times. And particularly helpful is a notification when a particular tweet has been getting more attention than your normal tweets. You’ll get a message akin to this:
15x NORMAL REACH
Twitter analytics is still in its infancy. I expect it to get better. Meanwhile, to start using it, go to Twitter’s advertising platform and log in.
Initially, sponsored tweets on Twitter were open only to big corporations. Now, they’re open to everyone. You can take advantage of Twitter’s self-service advertising platform in two ways:
- Promoted Accounts – Ever see those “Who To Follow” lists in your Twitter sidebar? If so, then that’s what I’m talking about. You can have your account show up in that list for people that you target based on demographics you choose. Get more targeted followers for your business and capitalize on them.
- Promoted Tweets – The other way to use Twitter’s self-service advertising platform is to promote individual tweets. These are also based on demographic data you input based on your preferences. The difference is that your promoted tweet will appear in the Twitter streams of the people who match your targeting preferences.
This is a new opportunity for small businesses looking to capitalize on Twitter. You can keep tweeting for free and hope to get a response from your followers, or you can reach Twitter accounts based on your preferences. These may be followers or not, but they’ll be targeted based on criteria you define.
I think now is the time to jump on this bandwagon. It is likely that the cost of Twitter advertising will increase as demand increases. At least, initially. What you’ll pay for promoted tweets two years from now may not be what you’ll pay today.
Facebook has a new tool. It’s called “Lookalike Audience.”
If you are a Facebook advertiser, then you can create a custom demographic. Facebook then gives you the option to add a lookalike audience to your PPC advertising campaign. This lookalike audience will consist of Facebook users who match the demographic criteria of your custom audience who are also not fans of your Facebook brand page.
I think so. This is a step forward for Facebook advertisers because it means that you can actually reach more targeted customers. More easily. More quickly. More cost effectively.
You can then turn those customers, with click throughs, into Facebook fans for your page. A certain percentage of those will then see your Facebook content and be able to interact with it. It’s a great way to grow your fan base, market your products or services, and increase your conversions.
According to Inside Facebook, advertisers in the beta are seeing lower costs per action than with traditional targeting options.
Lower costs per action translates into higher profits. With this tool you can increase your conversions, lower your costs per action, and increase your profit margin – all while expanding your reach in a sensible cost effective manner. What more could you want?
It seems that Twitter is advancing its paid tweet model pretty quickly. They’ve recently added the ability for advertisers to target negative keywords.
Negative keywords are keywords you don’t want to target but are often associated with the keyword you do want to target. For instance, if you are planning an international bacon festival and you don’t want your sponsored tweets appearing on posts where Kevin Bacon fans are going ga-ga and waxing poetic on the beauties and virtues of the movie Footloose, then you can negatively target the keyword “Kevin.” That will effectively limit your sponsored tweet showing up in Twitter feeds that are all about Kevin Bacon.
It should save you some money. Plus, you’ll more closely target the market that you’re actually trying to reach with your sponsored tweets.
Sponsored tweets are Twitter’s version of pay-per-click advertising. It’s less expensive than Google AdWords, and if you have an audience that spends a lot of time on Twitter, then it can be quite effective in reaching the right audience.
I highly recommend the use of negative keyword targeting any time you use spend money on PPC ads – whether it be with Twitter’s sponsored tweets, Google AdWords, Facebook’s sponsored ads, or any other PPC advertising. Negative keywords keep your ads targeted to the right audience. That’s precisely what you want.
As you get into managing your pay-per-click campaign, you’ll want to ensure that your landing page is optimized for search, draws the visitor in, and makes the sales pitch seamlessly with a strong closing statement – also known as a call to action.
Designing your landing page for PPC requires that you keep a focus on quality. Your quality score will determine where your ads are placed and whether or not your landing page receives respectable organic search rankings.
Here are 5 solid principles to keep in mind when designing your landing page:
- Attractive Page Design – Let’s start with design. Your page has to immediately be attractive to a user. If it isn’t, they’ll back out and go somewhere else. Make sure your images don’t obscure the text, make it easy to navigate or scroll through, and be sure you choose the right fonts and graphics.
- User Experience – Site visitors will not wait for pages to load. Make sure yours load fast. Also, include Buy Now buttons that are easy to use and functional. Every element of your page must be easy to use and encourage interactivity.
- Keep It Simple – Get rid of any unnecessary elements. Everything must point the user to the final sale. Include plenty of white space around the Buy Now button to make it visible.
- Grab Your Visitor’s Attention – Use big fonts and eye-catching colors for headlines, subheads, and calls to action. Make sure your Buy Now and Order buttons are clearly visible. Draw your site visitor’s eyes to those parts of the page you want them to focus on.
- Make It Social – Include social share icons on your pages to encourage visitors to share your page. And show your social proof badges as well. People respect marketers who can prove their social worth.
Television advertising can get expensive. If you have a larger competitor that is using TV advertising and you want a way to nose in on his turf and siphon away a little business, you can do that with a surreptitious PPC campaign targeting keywords that your competitor is using in his TV ads.
So, how do you do that exactly?
What you want to focus on are brand-specific keywords related to your competition and the products they are promoting on TV. This works especially well if your competitor is promoting a special. Then you can use PPC to undercut that special.
For instance, let’s say your competitor is marketing helium balloons at a 20% discount for customers who buy them by the dozen. The normal price is $3 per balloon, but if the customer buys 12, then it’s $28.80. You can have a PPC campaign that targets your competitor’s brand name, the name of any particular products on sale, etc. Of course, target the generic keywords as well.
People generally search for brand names and product names after they see TV commercials. If you get people clicking on your ads with an offer that undercuts your competition – for example, you could offer 12 helium balloons for $26.00 – then you could siphon away some of that traffic.
It’s a sneaky tactic, but it works like a charm.
Many PPC advertisers have the false belief that quality score is all about click-through rates (CTR). That’s a dangerous belief because, first, it isn’t true, and secondly, if you focus entirely on CTR, then you’ll miss out on great PPC opportunities by not paying attention to other important details.
While Google doesn’t share its PPC algorithm and the factors it deems important for a good quality score, there are some very good reasons for believing that CTR is not the brass ring.
I’m not saying CTR isn’t important. I’m simply saying it isn’t the sole determinant of a high quality score. Other factors like landing page experience and load time, keyword groupings, and ad text also bear on the quality score of your PPC ads.
Google is very concerned about landing page load time. That’s why you can now measure your load time in Google Analytics. If it weren’t important, there’d be no way to measure it. You want to make sure that your landing page loads fast. Beyond that, you also want to make sure it is well optimized and that it answers the questions your visitors have when clicking on your PPC ads.
The ad itself is just as important. If your ad text is misleading or not relevant to the landing page, that will detract from your quality score.
Finally, if you have a lot of non-relevant keywords in your keyword group, that will also affect your PPC quality score. So don’t get wrapped around the axle on CTR. It’s important, but not all-important.
Incrementality is a term that is associated with how many PPC ad clicks are caused by a lack of similar organic results. In other words, if you have a PPC ad that targets a specific keyword phrase and you receive 100 ad clicks in the absence of an associated organic result, 50 of those are said to be incrememntal if they are not replaced by clicks on organic results when those organic results are present.
Let’s take a concrete example.
Let’s say you are targeting the keyword phrase “red banana.” If you have a PPC ad that you run periodically targeting that phrase and you get 100 clicks a day on that ad when there is no organic search result for your landing page, we’ll consider that your base of comparison. Now, let’s say you have an organic search result that appears alongside your PPC ad. If you get 50 clicks on the organic search result when it is present and 50 clicks on the PPC ad, then you do not have any incremental clicks on the ad. However, if you only get 25 clicks on the organic result and 50 clicks on the PPC ad, then 25% of your ad clicks are said to be incremental.
Google recently performed a study concerning incrementality on ad clicks.
The interesting thing about this study is that it shows that 50% of ad clicks are incremental when the advertiser has the top ranking for the targeted keyword phrase. If your organic result is in the 2nd, 3rd, or 4th positions, then advertisers’ incrementality rate is 81%. The incrementality rate is 96% for advertisers whose organic rankings are in the 5th position or lower.
While Google is careful to point out that individual advertisers will have differing results, this is a telling study. For one thing, it illustrates the importance of high organic search rankings. But it also says that PPC advertising is more important when your organic search rankings are lower.
Recent news shows that mobile PPC is on the rise. In fact, it’s up to 25% of all pay-per-click advertising.
The good news is that click rates are high. People viewing PPC ads on their smartphones and tablets are clicking on ads. Here’s the bad news: Conversion rates are lower for mobile phones.
OK, I’ll buy Cynthia Boris’s argument. Mobile phone users are on the run, so when they see an ad and click through and want to make a purchase, they just visit the store instead and make the purchase in store. PC users, on the other hand, make the purchase online. Makes a lot of sense.
But let’s think about the future. Smartphones are still new. What will mobile advertising be like in 10 years when everyone has a smartphone?
My guess is that mobile PPC will be as popular and as profitable as PPC has ever been. I also think that conversion rates will be higher. Why? It’s likely that the mobile phone will be most people’s primary telecommunications device. Land lines will be gone.
If that happens, more people will use their phones for web browsing and shopping. They’ll likely make more purchases through their phone as well – particularly books, music, and video purchases. The same with the tablet. However, unlike the PC, people will carry their tablet with them and use it for web browsing and shopping while sitting stationary at the bus station, in the library, in the coffee shop, or even while sitting in their weekly business meeting.
Mobile PPC is on the rise along with smartphone and tablet use. It’s the wave of the future. You might as well get in now while click prices are low.
What’s it mean when paid search spending takes a dip? It could mean any number of things, but I think in this case it could mean that advertisers are beginning to figure out the right mix of their advertising needs.
I’m talking about numbers from the fourth quarter last year. Some interesting tidbits:
- Overall ad spending went up for the year and down for the quarter
- Internet display advertising spend was up 5.5% for the year and down 5.9% in the fourth quarter
- Television advertising went up in both periods
- Magazine, newspaper, and radio ad spending went down for both periods
- Auto advertisers are spending the most
- Both Amazon and eBay are spending less on advertising
But I think the most interesting thing from this study is that paid search spending was down both for the year and for the quarter in 2011. But why?
Maybe advertisers diverted a part of their ad spend budget to other channels – for instance, network TV and network radio. The ad spend for network TV rose 7.7% in the fourth quarter and declined 2% for the year. However, network radio advertising increased 4.3% in the fourth quarter while going up 2.7% for the year. Paid search advertising, on the other hand, went down 6.4% and 2.8%, respectively.
Advertisers have always been a fickle bunch. You never know where the money is going to go until it gets there. One thing for sure: radio print advertising is on the decline overall. Television advertising likely won’t go anywhere any time soon. But Internet advertising is still new enough that it stays in a state of flux. There are always new advertisers willing to give it a try and the old advertisers are still trying to figure out how to fit it into their budget optimally.
If you are an advertiser and you are trying to figure out where paid search fits into your overall ad budget, give us call. We’ve been doing this a long time.