I recently listened a webcast on PPC Rockstars (a webmaster radio program hosted by David Szetela, founder of Clix Marketing) where David was interviewing Brad Geddes, a guru in Post-Click conversion optimization who was talking about the importance of a PPC management. It was really interesting for me because a lot of companies undervalue the professional help of a PPC or SEM professionals. Brad explained on a very simple way, how a PPC campaign can immensely benefit from basic management and good practices.
On the webcast Brad demonstrates how improving the quality score on your keywords, improving conversion rates, profits per sale (through cross sales) and adding negative keywords can increase the profitability of any campaign on more that 50%. The interesting thing about the presentation is that the data presented by Brad is based on reasonable achievable improvements but virtually any good PPC management firm.
In order to simplified the conclusions of this webcast and summarize the 12 slides presented by Brad, I created these spreadsheet based on the same data presented on this example.
Let’s say you run a “non managed” PPC campaign spending $1,000 per day and making $50,700 in profits. If the campaign is properly managed for an online advertising professional you could end it up making $134.672 in profits without increasing your monthly budget.
On this graph I presented 3 different case scenarios:
- Change: Increasing Quality Score (from 6.5 to 8 ) – Result: Increased of $11,700 in revenues
- Change: Increasing Conversion Rate (from 2% to 3%) – Result: Increased of $25,350 in revenues
- Change: Increasing profits per sales (cross selling) (25%) – Result: Increased of $12,675 in revenues
- Change: Adding Negative Keywords (0.5 improvement in Quality Score and 0.25% improvement in conversions) – Result: Increased of $10,725 in revenues
By applying all these changes you can see how the numbers at the end of the month have also increased, the largest increased though takes place where you increase your conversion rate, even by just 1%; that’s why the landing pages in PPC campaigns are critically important.
The problem today is that a lot of businesses don’t realize these new challenges on PPC management and they never focused on these critical factors; any good PPC management firm will be able to handle all these issues properly, and put your ROI back on track. As Brad has illustrated a good PPC management is always a good investment.
This article has been written by Libardo Lambrano, founder of Syndikomm; an online marketing firm based in New York city and specialized in multicultural markets. Libardo Lambrano, a digital citizen of the world can be reached@llambrano