Last week Finch hosted a webinar on how to kill your competition using Google AdWords and we just published the recording. Head on over and check it out.
Bjorn Espenes led the webinar, sharing his insights on the most effective way for eCommerce companies to leverage AdWords for success. Using Google AdWords to generate revenue and edge out competition is certainly nothing new, but Bjorn presents a new way to approach AdWords that addresses the unique demands of eCommerce companies when using PPC.
Bjorn started the webinar with a very poignant question: What is your profit margin through Adwords? He related a conversation he had with the eCommerce manager at a large online retailer. This manager had been running campaigns that were viewed as successful and they were discussing the success rates of various channels. But when Bjorn asked him what his profit margin was on the traffic generated by AdWords, he had no answer. After several weeks of analysis and implementing the right tracking, they found that they were losing money on every AdWords customer.
All of the advice in this webinar centers on how you can avoid being in that situation. Instead of losing money through AdWords, you can generate real revenue and profit. Here's a quick summary of the presentation, but check out the recording for more details:
1. Define the right KPI to measure success - The first step in killing your competition on AdWords is to focus on the right KPI for success. For eCommerce companies this success metric is profit or revenue, not acquisitions. Once you focus on profit or revenue as your success metric it focuses all of your PPC activities on maximizing revenue or profit.
2. Bid on the outcome (profit), not the click - Armed with the right success metric from step 1, profit should now become what you bid on. When you are focused on maximizing profit or revenue generated by a click, you will bid aggressively on the keywords that perform the best and reduce bids on the keywords that generate less revenue.
3. Segment the clicks - There is a range of clicks that you can buy from Google: display, search, and now remarketing. This new feature gives you the insight you need to bid more accurately for your customers. Prior to remarketing, every customer looked the same, just another new customer. But with remarketing, now you know when a search is performed, you know whether that user has been to your site, had something in their cart or made a purchase. This gives you the insight you need to bid more aggressively and accurately for their repeat business.
4. Get complete keyword coverage - “Must be present to win” is a simple phrase, but certainly no more true than for businesses on AdWords. If your entire product catalog is not represented correctly and thoroughly on AdWords, it doesn’t matter what ads you have or how they are structured, your potential customers will never see them. Correct this problem by getting a thorough representation of your inventory into AdWords and continually growing your keyword inventory with the terms that your customers are actually using to search and find you.
5. Build ads that attract clicks - It’s all about the clicks! Optimizing your ads for the maximum clicks not only helps you get more customers, but it can also help raise your quality score and AdRank. Google has been busy releasing loads of new features that can give you more real estate on the users screen. Site links and parameters like price and quantity have proven to improve click through rates dramatically.
Beyond just providing guidance, Finch can help you execute on each of these strategies. But don’t take our word for it, go sign up for a free audit and we will show you exactly what we can do to improve your AdWords performance.