Are You Spending Too Much On AdWords?

July 9, 2015 / Tags:

What Impacts Your Cost Per Click?

When utilizing an Adwords campaign, it is important to monitor several metrics, including your ad spend versus your generated revenue. With a Google AdWords campaign, it is easy to overspend when several elements aren’t properly managed. Your return on ad spend (ROAS) is greatly determined by your quality score – which, in turn, is determined by several factors, including: click through rate, ad group relevancy and landing page experience. These elements determine how much you are paying every time someone clicks on your ad. They are also crucial elements in generating quality clicks that lead to conversions.

Learn more about Quality Score from Google:
https://support.google.com/adwords/answer/2454010?hl=en-AU

How To Improve Your Quality Score

  • Improve your ad content and relevancy. Ensure that your content is relevant to the landing page.
  • Increase the number of ad groups in each campaign so that you are able to create concise, relevant ad groups. We recommend that each ad group have no more than 5-8 targeted keywords.
  • Increase your click through rate by ensuring that your targeted keywords are not too broad. This will ensure that you are not acquiring too many irrelevant impressions.
  • Utilise the appropriate match type to ensure relevant impressions (broad match, broad match modifier, phrase match, exact match and negative keywords)
  • Increase your click through rate by utilizing ad extensions. These include site links, location information, reviews and more.


How SEO Helps Strengthen Your SEM campaigns

Onsite SEO related work has a large impact on both organic and paid traffic. When it comes to properly structuring a website for search engine optimization, there are several factors that contribute to increased conversions. By properly structuring the website pages in regards to product categories, we are able to segment the website based on consumer behavior. Through this, you are better able to align the consumer to the exact search query they have entered. This in turn improves the landing page experience – a crucial element in regards to quality score, which then influences your cost per click.

Proper website categorization, which is crucial for SEO, also allows for a more focused set of keywords in your campaign’s ad groups, which should ideally contain 5-8 relevant keywords. When these factors improve, the cost per click decreases. For example, say your average monthly spend is $1000 a month and you are receiving 1000 clicks. This would be an average of $1 per click. By improving crucial elements of the quality score formula, you’ll be decreasing your ad spend – in some cases, we’ve seen an average savings of 15% – 20%. This could potentially decrease your ad spend to 80 cents per click – which means you would be receiving the same results of 1000 clicks for just $800.

While SEO and SEM involve very different approaches, these services exist for one purpose; to bring quality traffic to your website. The fact is, when done properly, these two services can complement each other very well and contribute to your overall online presence. An ideal digital marketing plan incorporates organic search optimisation and pay per click services. Knowing the differences and potential reach of SEO & SEM is essential to creating an effective strategy.

Feel free to test some of our suggestions above, and if you struggle decreasing your Adwords Cost, give us a shout