Top 7 Tips on Maximizing Your Profits

Paid search listings continue to be one of the most popular and effective methods of obtaining traffic for websites. Unlike search engine optimization (SEO), Pay-per-click (PPC) does not require the same level of technical skills and time lag to obtain results. However, in order to maximize your campaign's return on investment, it is important to utilize some proven techniques that will greatly improve your chances of success. Below I have detailed my "Top 7 Tips on Maximizing your Profits".

1. Identify keywords that are relevant to your product or service.
   Finding the right keywords and keyword phrases to utilize in your PPC campaign seems obvious but this is easier said than done. On a few occasions I have been surprised to discover the lack of knowledge some marketers have in regards to which keywords are best associated with their product or service. Coming up with the roots should be done via a series of brainstorm sessions with many members of your marketing departments or people that know your business. The old saying, "two heads are better than one" could not be truer in these situations. Once you have compiled your list, turn to any of the many online keyword brainstorm tools to help you find terms and strings you may have missed. These tools are offered for free by Google, Yahoo and other search marketing firms and provide other useful statistics such as the search volume associated with each keyword.
   
   Avoid bidding on keywords that are too broad for you target market - i.e. buying the word "car" when your business is "car insurance" would likely yield you a negative ROI even though most people who buy a car also need car insurance. Don't be afraid to bid on some rarely searched terms that are strongly related to your product as these may be inexpensive and can add up to some significant traffic once you add them all together.
2. Employ at least 300 relevant keywords for your campaign.
   While this may sound like a lot of keywords, it really isn't. Consider that in a recent poll of 100 e-commerce executives, 64% claimed to manage over 1000 keywords for their campaigns [1]. While longer string key terms are searched less than 1 to 3 word roots, they are proven to produce the best conversions as they bring a more targeted visitor. Take the time to research and set up your listings to include as many targeted keywords and strings as possible. Often these longer terms are less expensive and passed over by PPC managers, so you may discover many bargains if you have the patience to set up the campaign.
3. Utilize management and analytic tools.
   Most search engines offer tools that enable you to efficiently manage your listings and track performance. Click-through rates, conversion percentages, GEO-targeting, comparison bid displays, and position auto bidders are all useful features that you should utilize to maximize your campaign performance and minimize overspending. Some search engines now offer a ROI tracker which is a highly effective tool to help you determine which keywords are worth the investment. Track, measure and test different ad content, keywords and landing pages using these tools to gage what works best.
4. Test your campaigns across a variety of search engines.
   While Google is believed to have as much as 77% of the PPC market share, it does not always produce the best results. A recent survey of digital and search marketing specialists placed Google third behind MSN (1st) and Yahoo (2nd) in terms of ROI [2]. Of course the sheer volume of searches on Google makes it a staple of any diversified PPC campaign. The best thing to do is explore various search engines to test which ones bring you the best results. Especially for those targeting high converting, but lesser known specific keyword strings where there are considerably less searches per day. For some websites, they simply cannot get enough traffic from one single source so spreading out your campaigns make the most sense. Also, you should try locating an industry-specific engine if there is one for your vertical market. Niche search engines are gaining popularity due to their ability to drive highly targeted traffic to advertisers.
5. Measure your various marketing campaigns separately.
   PPC, contextual ads and banners etc. all deliver different results. It is important to measure each campaign separately using analytic tools as discussed in tip #3. By measuring each campaign separately you will be able to best determine which ones are bringing you the best ROI and where changes need to be made for optimum ad spend.
6. Write ads that induce your desired response. [3]
   Your listings should include the following basic elements of effective copywriting:
   • Speak to your target audience in a language that they understand.
   • Accentuate your competitive advantage by first reviewing your competitor's ads then listing something unique about your business.
   • Emphasize your business' benefit or solution by letting your prospects know, "what is in it for them" such as time or money savings.
   • Offer an incentive such as a bonus or discount but avoid giving things away for free unless your goal is to increase your database or grow your brand.
   • Create urgency by providing a solution to your prospect's "pain" or make your offer time sensitive or in limited quantities.
   • Include the same call to action that you use on your website such as linking a discount or time savings to the desired response to buy.
7. Include the keywords in your ad and landing pages.
   Some search engines require that you include (at least) your root keywords in your ad listings. I suggest making this a mandatory practice for all of your PPC ads as click-through rates can improve by as much as 50%. Searchers will be more drawn to a listing that includes their keyword(s) as it indicates relevancy. It will probably take too long to write a separate listing for every keyword string, so try to group your ads together using as many keywords as possible by writing them into the title rather than the description. Also, you will experience higher conversion when the keywords appear on the landing pages directly linked to the PPC ad.

By implementing these suggestions you should be able to get the most out of your PPC campaigns and simultaneously improve your ROI and tracking capabilities.

References

1. "1st Annual Pay-Per-Click E-tailer Stress Study" The E-tailing Group Inc., November 2006
2. Jenny Hoffbrand, "Searching Beyond Google Could Boost Your ROI", Precision Marketing (May 18, 2007), p. 11.
3. Catherine Seda, Search Engine Advertising: Buying Your Way to the Top to Increase Sale, (U.S.A.: New Riders Publishing, 2004) p. 48-55.