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The best pay-per-click advertising campaigns are always constantly evolving and moving with industry trends. This is because your potential customers can change just as quickly as the meaning of a keyword or phrase can. What this means is that a poorly monitored PPC campaign will end up wasting both your time and money.

Rather than hiring a league of workers to closely monitor, process and then act out changes within your PPC campaign. You are far better off to use an automated service to collect your data, catalog it and then interpret it in order to offer you the best performing campaign available.

Let's take a look at why your PPC campaigns should be as simple as “rinse and repeat”.

 

What's Wrong With Using Cost-Per-Acquisition?

Cost-per-acquisition is the main strategy that most businesses choose to use when it comes to pay-per-click campaign optimization. It tracks the cost of a keyword and pits it against how successful that keyword is at bringing in a conversion.

You may already see the problem with this strategy. Say that you have an active campaign running with a PPC keyword that has an average cost-per-click value of $0.50. You find that it takes on average 20 clicks to make a sale of a $5 item. That means you end up with a CPA value of around $10 per product sold.

By the books, $10 as a cost isn't so bad when you're selling products that are worth a lot more than $10. The problem here is that with cost-per-acquisition logic this might be one of your highest converting keywords but you end up losing money due to your final sale value simply because this is an inefficient keywords for your product or service.

Cost-Per-Value: A Better Way to Run Your PPC Campaigns

Cost-per-value are statistics that calculate the value of completing a specific action for a specific return. If it was used in the earlier example, then the $10 Adspend for the keyword is not beneficial to the company as it is only producing a $5 sale each time but incurring double this in advertising spend.

One difficulty that is associated with optimizing your PPC campaign on the value of each individual keyword is that the price of your items and keywords both continually move up and down. This requires a constant, vigilant eye on not only your PPC statistics, but also on the sale price of items you offer and the value that each customers brings when a transaction is completed successfully.

Another other problem is that you can't calculate the value of a customer to your business in certain unique cases without an integrated tracking system. The value of a customer and a word should be decided by how much profit each keyword brings in, which means that customers who buys more than one product often leaves anomalies when it comes time to calculate PPC efficiency.

The Solution That Makes PPC 'Rinse and Repeat'

The solution to a more efficient PPC campaign lies in automating your PPC advertising altogether. You can't achieve the best return on your PPC investment if you rely on people simply because they will sometimes make mistakes and use less efficient pay-per-click strategies. Only by using computer software that firstly collects all your PPC data, can algorithmically sort it in the most appropriate way for your business model and finally can tweaks your PPC campaign on a per-value basis for each of your keywords will you be able to truly maximize your profits on a daily basis.

The best part of automating your pay-per-click campaign lies in the fact that it makes everything easier and more efficient. The only thing left for you to do is 'rinse and repeat'.

About the Author

James Patterson is Simple iD's lead online marketing consultant. Simple iD is a full service online marketing agency that offers clients everything that they need to succeed online, from web design and development to a complete tailor-made online marketing package. Come and check us out on Facebook.

http://www.nodestudios.co.uk/a-complete-guide-to-pay-per-click-for-small-businesses/

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