1. Presented by Sam Shetty Sept 2012
WEBINAR
Measuring ROI from your
PPC campaign
2. Agenda
■ Where does your website get traffic from ?
■ Is PPC right for your company ?
■ Calculating CPA
■ PPC Budget
■ Better ROI
■ Tips on improving ROI
■ Should I outsource my PPC ?
■ Q&A
8. Is PPC right for your company?
• Two basic ways people
end up making money
with their websites.
• They sell something or
they get a lead
who eventually they
can sell something to.
9. E-commerce
• When people search for a product your selling, having a PPC
ad will ensure buyers find you.
• E-commerce sites are the most frequent users of search
engine marketing.
• Ingredients for Success:
– Need a comprehensive keyword list for each product
– Implement conversion tracking
– Need proper landing pages
– Manage inventory against ads running
– Offer guarantees or special offers
10. Lead generation
• Using paid search for lead generation helps you find
sales prospects who are interested in your service or
product.
• Ingredients for Success:
– Need a comprehensive keyword list for each product or service
– Implement conversion tracking
– Need proper landing pages
– Strong lead generation form
– Offer an incentive
– Make it easy to contact you
11. Branding Branding
• Branding campaigns are for people
looking for traffic without a specific
call to action for visitors to take. It’s
lacks the measurability of lead
generation and e-commerce.
• Ingredients for Success:
– Use local targeting if applicable
– Bid on your company and brand names
– Create landing pages where appropriate
12. Measurable
• Paid search is measurable from start to
finish.
• Advertisers can track what keywords are
being searched, clicks and if a buyer
purchased a product from the click.
• Impressions: Each time the ad is viewed.
• Cost-Per-Click: The cost for each click
generated.
• CPA: The cost per action – how much does
it cost to get someone to take an action
13. Traffic
• A well executed PPC
campaign sends targeted
traffic to your site.
• Plus, sites that rank both
high in Paid and Organic
results receive more clicks.
14. Brand Recognition
• Increased impressions with paid
search results. If they see your ad
even if they don’t click, they have
increased awareness of your
company.
• However, a word of caution:
Having ads with high impressions
and a low CTR will result in a
decreased Google Quality Score.
15. 24/7 Advertising
• Paid search ads start
running immediately
and continue to run
24/7. Potential buyers
or customers will always
be able to find you.
16. Precision
• PPC advertising has advanced controls:
• Day-parting: You can choose to have your ads run
only at certain times during the day.
• Geolocation: You can target your ads to run in
certain locations only.
17. Show me the money
• So how much can you afford to spend?
Let’s figure out your Cost Per Action (CPA.) This is
where an advertiser pays for each specified action
(a purchase, a form submission, and so on) linked
to the advertisement.
18. Conversion Tracking
• How it Works:
Conversion tracking places code onto your site.
Once the code is applied, conversion tracking
places a cookie on a user's computer when he or
she clicks on one of your ads.
Then, if the user reaches one of your conversion
pages, the cookie connects to your web page and
conversion tracking records a successful conversion
for you.
19. Calculating your target CPA
1. Determine Your Conversion Rate
2. Calculate Your Gross Profit
3. Calculate Your Target CPA
4. Calculate Your Net Profit
5. Determine Maximum CPC
20. Figure out your conversion rate
• Conversions / Site Visits = Conversion Rate
• If a site received 4,000 site visits in a month,
and generated 80 conversions, the conversion
rate would be 2%.
• 80 / 4,000 = .02
21. Calculate your Gross Profit
• Sales Price – Cost of Product = Gross Profit of
Product
• So if your sales price is $125 and your cost to
build the product is $65 then your gross profit
is $60.
• $125 - $65 = $60
22. Calculate your target CPA
• Sales Price * Sales & Marketing Cost % = Target
CPA
• So if you’re sales price is $125 and your sales and
marketing margin percentage is 15%, your target
CPA, including promotional costs, is $18.75.
• $125 * .15 = $18.75
23. Calculate your Net Profit
• Gross Profit – Target CPA = Net Profit
• So if your gross profit is $60 and you subtract
your target CPA of $18.75 then your net profit
is $41.25.
• $60 - $18.75 = $41.25
24. Determine Maximum CPC
• 100/(100 * Conversion Rate %) = Required clicks to generate a
conversion
• So if the conversion rate is 2%, then you’ll need 50 clicks to get a
conversion.
• 100/(100 * .02) = 50
• To calculate the maximum average cost per click your campaign can
have, take your target CPA and divide it by your required clicks.
• Target CPA/Required Clicks = Max Avg CPC
30. Custom Budgeting
• Every business has a different
budget and needs.
• PPC advertising allows you to
specify how much you want
to spend on any given day or
month.
• Custom budgets tailored just
for your business.
31. Fixed and self-funding budgets
• A fixed budget establishes a fixed amount you
spend on PPC.
• A self-funding budget is based on your ability
to fund your PPC campaign by meeting
specified sales goals.
33. The “Brakes” in PPC
What to do when your campaign isn’t working:
1. Keep an Eye on Costs
2. Not All Clicks Are Equal
3. Know When to Stop Spending
4. A/B Test
34. Watch your Google Quality Score
• The historical CTR of the keyword and the matched ad
• CTR of all the ads and keywords in your account
• The historical CTR of the display URLs in the ad group
• The quality of the landing page
• The relevance of the keyword to the ads in its ad group
• The relevance of the keyword and the matched ad to the
search query
• Your account's performance in the geographical region
where the ad will be shown
• The higher your Quality Score, the lower your costs and
the better your ad position.
35. Investigate Long-Tail Keywords
• Long-tail keywords are three or more words.
• Traffic from long-tail keywords convert at a
higher rate, and have a lower CPC, since
demand for the keyword is lower.
36. Good PPC = Good ROI
• Chances are, the better
your PPC, the better are
your ROI. Keep these
tips in mind.
• Analyze the Data
• Use Negative Keywords
• Exact Match Over Broad
Match
38. Before creating a landing page….
• Business objectives
• Know your audience
• Visitor action
• Entry points
• Technical limitation of your target audience
• Check domain name availability
• Competitive analysis
39. Optimising your landing CTA
• Make your CTA(s) clear and unambiguous
• The bait and switch
• Amazing! Awesome! Kick-Ass!!!!
• Breathing room
• Keep it where it can be seen
• Personalize/localize the call to action
• Reduce the available options
• Be audience appropriate
40. Tips on improving ROI
• Run a negative keyword campaign
• Spread media across Google, Yahoo & Facebook
• Focus on Display ads , remarketing campaigns
• Location, Location , Location
• Make an offer they can’t refuse
• Utilize long tail keywords
• Timing is everything
• Home page is not a landing page
• Quality score is key
• Monitor it regularly ( Keep on testing …)
41. Is PPC right for me ?
• Does your business have a unique selling point ?
• Do you stock products ?
• Do you need to feed your sales team with leads ?
• Low cost of lead acquisition
• Do you need to measure ROI ?
• Ability to focus on specific locations , time zone
• Ability to change your marketing message daily
• Better conversions
42. Should I outsource PPC ?
• Campaigns needs to be monitored regularly ?
• Big budget and multiple search engines
• Ability to focus on quality score, conversion rates ?
• Ability to create landing pages ?
• Ability to identify Long tail keywords ?
• Using a better PPC bidding platform ?
• Can you afford to spend 10 hours a month?
How much is 10 hours of your time worth ?
43. Conclusion
• Q&A
• Request a free Consultation for your website
• Thank you !!!
• Sam Shetty sam.shetty@netregistry.com.au
