Tags: PPC

PPC is an important advertising tool for businesses and it can be very profitable (if you use it correctly). Keywords with higher cost per conversion can be sapping your funds dry. If you're in the process of building your business, it's important to manage your PPC campaigns carefully. Here's some PPC advice for small businesses on how to approach keywords with higher cost conversions: 

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 Have you never used PPC before? Do you want to learn more about it? Check out these helpful articles to get you started on the basics:


 

We’ve all been there, keywords which routinely have a few conversions but high cost. You find yourself asking, are they really working for me?

To answer that we recommened you set a maximum CPC which you are comfortable with, this will depend on your industry, budget and average order value. Once you have worked out your maximum spend, you can then reduce your PPC spend with the least impact on conversions, by pausing the keywords with the lowest ROI.

To do this look for keywords which either have no conversions but which have spent over the maximum CPC or keywords which have converted at a higher CPC rate than this maximum CPC value.

This example is for the online bike shop which has an average CPC of £30 per conversion but the owner doesn’t think any conversions which cost over £50 are profitable enough, the two highlighted keywords should be paused.

Keyword Total Cost Conversions CPC Action Needed
bmx bike £250.00 2 £125.00 Pause, this has a CPC higher than your acceptable amount (over £50)
buy bmx bike £102.00 12 £8.50 Keep running, this is performing better than your target
best bmx bike £51.00 0 £0.00 Pause, this has already spend over the maximum spend without converting once.
bmx bike for sale  £10.00 0 £0.00 Keep running, although it has no conversions it has only spent £10 and therefore it hasn’t met the criteria to be paused.

Pro Tip:

Make sure you check your CPC regularly to avoid spending too much on poor performing keywords, you should check this over a short, medium and long time period to make sure you are capturing all the necessary data.

PPC campaigns are very beneficial to your digital marketing campaign as long as they are managed properly. Often business owners are apprehensive of using PPC but if you keep an eye on your campaigns they can be a profitable source of revenue and lead generation.


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