Why Learn Pay Per Click Optimization Internet Marketing Strategies
At this point, we are no longer just gathering data, but we are attempting to gather some insight into our pay per click campaigns. There is only a small percentage of data that really matters. It is the insights you gain and now it is the actions that you take. Actions are only possible when you have very clear measurements. What you can’t measure, you can’t improve and what you can’t measure, you can’t act upon.
The reports and data are not going to be enough. There is no shortage of data in the average program. There are dozens of reports that you can run in the Google report center. There are also tools like Google Analytics. There are software and keyword tools. Despite all that is available, you still have to understand the difference between data and a measurable action. You have to be sure that every action you take, that you are gauging what is increasing your campaign performance or bringing you forward or backwards.
When you take an action, it is essential that you measure that action to see if it works. This is one of the things people will do. They are not scared to take the action. They will take the initial data, look at it and see that it is not meeting their business objectives. They will then take the actions to make improvements, but they neglect to monitor and measure those actions to actually see what is working and what is not working, thus allowing them to continue with their pay per click optimization internet marketing strategies.
For example, if you are looking at the CTR metrics, that is one thing. But, if you take action, you are going to write a new ad and create a split test with the intent of increasing that CTR. This is a great action step. But, if you just run to split test for the sake of having two ads and you don’t measure which ad is the definitive winner, you are wasting your time. Pay per click optimization is about taking out all of the guess work and all of the data you are compiling and turning it into known factors so that you can build on it and continue to get more of the good stuff that is known and eliminate the bad stuff that is the unknown.
When you are looking at your ad copy revisions that you have made and that split test you created within you pay per click campaigns, it is essential that you quickly and efficiently make a decision on the winner. One ad is going to out-perform the other either on the CTR metric or conversion metric or both. Once you have gathered this information, you need to delete the loser and then retest again.
Again, if you don’t partner that action with measurements, you will fall short in terms of campaign performance. You will continue to move in this endless cycle of doing things in your account but never knowing exactly what is working and what is not. This can be kind of an emotional roller coaster. It is a lot easier if you track everything that is happening so that you can continue to understand why the improvements are taking place. Also, you need to understand even more why things fail.
Tracking your conversions is essential to measuring your results and tracking those campaigns that are generating the most leads; tracking which ad headlines and text ads the highest percentage of leads and have the best conversion rates.
Looking at all of the key metrics in your account and looking to attract those conversions, tracking which components in your account are making those conversions possible; which components are driving those conversions and driving the highest percentage of them, thus allowing you to be very focused on improving elements within your campaign that are generating good results as well as looking at those elements that are causing harm to your campaign.
Pay per click optimization internet marketing strategies encompasses a process of gathering data, making the decisions based on relationships and recognizing the gaps between your current campaign performance and your goals. Next, you bridge those gaps by continued action and improvements and measure the results of those actions to gain insight into what is working and what is not working.
One thing that is very easy in Google, one of the easiest to do in regards to pay per click optimizing your Google campaigns is to notice what isn’t working. You know it is not working if it is not bringing you closer to your goals. If you are running a campaign and it is not generating a descent amount of leads usually is a good indicator that your ad group, campaign, or ad copy is not working. Is it producing leads at the right conversion rate, meaning are a high number of people taking this keyword in your ad group and going to your landing page and opting in, are they buying? If a high conversion rate is present, this is probably good. But having a keyword with a very low conversion rate; such as 3%, indicates that there is not enough interest there and there is definitely a gap between the keyword and your ad. What you will find is that either there is a low quality audience or not interested in your offer, or the keyword is not specific enough, whatever the problem, it just is not working.
A low conversion rate, most times, is a very clear indication that something is not working and that there is something wrong there. The higher conversion rates indicate a higher level of interest. They are more likely to convert to sales. The conversion rate is another key metric that can be used to determine whether something in your campaigns is not working.
Another metric fro what is not working is the Cost Per Click metric, or CPC. If you have a set budget and you know that the market value of your lead is around .00 and you can afford .00 a lead and still make a profit, if the lead is costing you .00, it does not matter how good that keyword is converting or how everything looks on paper, a .00 CPC shows you that something is off. Thus, the CPC is another great way for determining what is working and what is not working.
Once you have determined what is not working, you are going to delete those elements. You are either going to pause the ad group or delete the ad group. Another step is to pause the keyword or delete it completely. Either way, you are going to need to shut it down as soon as it shows you, after 20 or 30 clicks, that it is just not producing. It is over priced, low traffic, with no conversions, and displays lack of interest, which means little to no sales.
You are always going to want to plug those holes on a constant basis. With Google, everything is going to be a test and a lot of it is not going to work. This is why it is essential that you see what is not working and quickly act upon it, by taking it out so that it doesn’t continue to bleed your ad dollars. If you don’t act quickly, you can fall behind in the race very quickly.
A key factor for success, which occurs over time, where you can get some industry metrics
starting out in a new market or you may have a market where you don’t know what your metrics are and you are going to have to develop them. Often this is the case because every business is unique in terms of their goals, their budgets; everything is unique within you business. In situations like this, you are going to need to set some campaign benchmarks that are measurable that pertain to your business, that are obtainable just for your. You want to set something that is specific to you, not broad. This will be something that you will need to develop over time. Again, this is an ongoing process. Therefore, optimization is going to remain there for as long as you manage an advertising online campaign.
Through the optimization and data, when you gain those insights, you want to immediately set some benchmarks for what works. You want to be clear on your benchmarks; such as, what your CTR should look like. You want to know what it should be in your market. You know that when you get a certain benchmark, you show up at the top of the page. This is something you are going to have to watch from your traffic and experience.
Next, what about your CPC? For example, you notice that you make the greatest profits at the end of the month. This can be determine if you are simply taking your ad spend that you put into Google, the entire amount of ad dollars that you used for your Google advertising and you are just adding up all the sales, revenue, and profit that was generated during that month and compare those two metrics. When you do this, you are going to find out which months are more profitable, which ones are not as profitable and you know which campaigns. You may have noticed that based on your numbers, that your CPC, there is a certain Cost Per Click that always tends to produce a profit. You also know that if you go much over that CPC, you go into negative, no matter how well you do, just based on performance metrics, that there is a certain CPC, that if you pay it, you are certain to lose money whereas if you keep your CPC at or below a specific CPC, you are guaranteed for profit. So, having a Cost Per Click benchmark is something that you will develop over time.
Then there is positions. It is important to know which positions are the sweet spot for your campaigns. This is going to vary from keyword to keyword and campaign to campaign. It is never going to be the same. This has a lot to do with behavior. It has a lot to do with the buying behavior. Are your prospects buying, are they shopping, are they browsing and how does their behavior relate back from the keyword query. You need to know which positions are working and which behaviors are producing sales. Overall, you want to know what is producing you the most profits and sales and good results.
You should also always have some conversion numbers. You should always try to beat your conversion metrics. The two metrics you are always going to try to beat ever day, that will make you the number one advertiser in your category or your market, is to increase your CTR (Google ranks everything on this) and your Conversion rates (this is the ratio you bench everything on). The conversion rate reflect the leads and the sales opportunities in your pipeline. The CTRs reflect for Google, the value in your traffic, the value in giving you those positions. Every time Google puts you at the top of the page, there is a value in that. Google has to know that if they give you those positions, they are going to get paid in clicks. If it does, they will continue to put you there over and over again.
In conclusion, you should always be improving the CTR metrics as well as the conversion rate metric, then you will know that you are going to get the most high quality leads for the lowest price over time. Therefore, be sure you have some conversion rate metrics set in terms of benchmarks. What is a good conversion rate for you and what is a good cost per conversion (CPC).
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