Pay Per Click Advertising – cont’d
A Quick Case Study
Good PPC advertising management is an art form. Here’s an example of one Google ad (modified to protect the innocent) that we edited for a client. Their original AdWords spot read:
Low Cost Bicycle Parts
Order online today
These ads didn’t perform well – their ranking, clickthrough and conversion rates were very, very poor. Why? Three reasons: First, the ad is far too general – someone searching for a bicycle part on Google will most likely search for the specific part, not for sites that sell everything. Second, the ad doesn’t make any strong value proposition – anyone advertising on Google can very likely take my order online, today. Finally, the ad doesn’t optimize for the search terms used to find it.
The result? They were paying about $1 per click for a #1 rank, with 800 clicks per day and less than a 1% conversion rate and an average profit per order of $6. No chance of making any profits with that kind of performance:
1% clickthrough rate
1% conversion rate
800 clicks per day
800 clicks * $1.00 per click = $800 cost per day
.01 * 800 * $6 = $48 profit per day
Not good at all. Here’s how we changed it. We developed four ads, each focusing on a single keyword combination or group:
Campagnolo Components
A Complete Selection, Delivered Overnight!Shimano STI Component Sets
Overnight Delivery on Dura Ace.Tubular Racing Tires
Continental, Michelin, Delivered Overnight!Phil Wood Bearing Grease
32oz Jars and Cases Delivered Overnight.
Each ad targets a keyword combination (in the title) that we found is searched more than 50 times per day. A number 3 rank for each ad costs $.15 per click or less. Within a few days, their performance looked like this:
12% clickthrough rate
8% conversion rate
200 clicks per day
Average profit per order: $6.00
200 clicks * $.11 per click = $22 cost per day
.08 * 200 * $6 = $96 profit per day
The bids we placed earned them a #3 rank, but their high clickthrough percentage bumped them up to the #2 or #1 spot for every keyword and phrase (see ‘Play to Come In Third’, on the previous page, for an explanation).
It was a solid turnaround, built on basic principles: Good niche keywords, solid writing, a smart budget and intelligent placement. By focusing on conversions, instead of clicks, our client got a better result.
Where to Go From Here
Pay per click is now a basic Internet marketing tool. Very few businesses can afford to ignore it. But you have to avoid the more-clicks-is-better mentality. Focus on conversion and return on investment, rather than clicks, and you can build a profitable campaign.
Learn moreContinue reading for more information about PPC advertising. To learn more about Portent’s PPC, visit our pay per click services page.
Want to learn more about PPC? We can teach you! Sign up for Portent’s free PPC Email Series. Five emails designed to armor you for the PPC battlefields.
About the Author
Ian Lurie is an Internet marketer in Seattle, WA. He started his web design and marketing firm, Portent, Inc., in 1995. Portent offers complete Internet marketing support, including search engine optimization, email marketing, and web design and development. Recent projects include SEO for Lucky Brand Jeans, Attachmate, and momAgenda. Ian has a law degree from UCLA and has successfully avoided practicing law for almost seventeen years.
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