Digital advertising is an effective way to market your online business; in fact, the spending cost of ad sales is expected to increase globally in the coming years. Among these schemes, cost per click advertising seems to contribute a significant number in the growth rate. Learn more about CPC and how do cost per click ads compete despite its super high prices.
What Is Cost Per Click Advertising?
Cost per click is an advertising model which determines the amount to be paid for every single click that you get in your campaign.
Theoretically, CPC will only charge you when there are clicks in the ads. This means that if the ad you posted doesn’t get many clicks, you’ll be getting lots of impressions for free. It will keep you from paying large amounts for the advertisements that don’t perform well.
However, if the ads posted perform well and a high click-through rate is achieved, then you have to pay for every click you get. This will definitely add up quickly to your expenses.
How Do Cost Per Click Ads Compete (Despite Its Super High Rates)?
Through the years, the marketers who are managing the accounts have become savvier and more competitive. This competition allows reinforcement of the campaigns to ensure that the brand or business is always on the front-line.
Now, the problem is how to stay competitive despite the presence of high competition. Here are some helpful tips:
- Track performance by setting-up analytics
Make sure that you implement analytics in your business. This is an essential factor to manage your search campaigns properly.
There are free analytic tools that you can use to help optimize your campaigns. Be sure to determine your specific goals and targets. This will allow you to measure your performance and track whether your efforts are within the expectations.
- Shape your scheduling strategy through trends
Effectively enhance your strategy by using the latest industrial trends and insights. You can also use free planning and scheduling tools to determine when is the best time and day to adjust your ads.
Those with limited budget may opt to lessen their bid modifiers during less profitable times and low conversion rates. This can be done by monitoring the reports so that adjustments can be made when necessary.
Monitoring of your competitor’s ad schedules is a good strategy. This will allow you to identify the gaps and increase visibility once they go offline. However, this technique will require tools for better analysis, monitoring, and possible identification of trends.
- Set budgets
Setting your budget may look simple, yet can be a huge source of opportunity or failure. Accounts with limited budgets should consider their branded, conquesting, and shared budgets.
A separate budget for brand and conquesting should be taken into considerations as these will drive awareness of your products. Shared budgets tend to help those with a limited budget greatly. Try to have at least two levels of campaign and have a shared budget for each.
- Know your keywords
Keywords are known to be the framework of a paid search marketing campaign. Know the difference between branded and non-brand keywords.
Check the in-line performance and auction insights through the share of voice reports. Closely monitor your conquesting campaigns to prevent unintentional spending.
- Manage your account structure
Organize your ad group accounts in such a way that better optimization is achieved. You can establish the keywords in closed groups to allow quick visibility of the more profitable decisions.
This will also improve the quality of your scores. Keep in mind that tailored ads and landing pages can help improve the relevance of your ads when assigned to specific keywords in the group.
- Keep a good quality score
Always have your score in relevant and optimized values. This is an analytical tool that gives you an insight into how well your keywords are performing as compared to the others.
You can consider cutting down these keywords based on its importance and performance in the past. This will improve not only the relevance of your ads but also your landing page towards a more successful experience.
- Consider the target audiences
Targeting of audiences and remarketing of the list for search ads allow customization of the ads for those who previously visited the website. This will also allow ads and bids customization based on the keywords used.
Always connect with possible customers who are aggressively considering your products or services. They are the ones who actively research, browse, and compare the different items present on the platform.
- Test several ad positions
Check out which among the different positions makes the most logic for the keywords. Primary positions tend to be the best, but it may not be the most profitable for you due to the margins and revenues. Try to test various positions regularly and analyze their effects, their pros and cons, in the conversions and clicks.
- Create relevant ad extensions
Carefully designed and executed ad extensions can enhance your website. Be sure to use all available and correct extension as there are plenty to choose from.
You can think of ways on how to utilize them together in order to make it more appealing to your potential customers. This will lead to more clicks and improve your score.
- Promote diversity in the portfolio
Look into the possibilities of expanding your portfolio to different channels. You may include a diverse channel in your marketing strategy. This will help increase your business’ potential customers to a higher percentage.
Knowing how do cost per click ads compete (despite its super high rates) is essential to succeed in your ads campaign. Keep in mind, though, that the ultimate goal of advertising campaigns is merely to meet the needs of potential customers. It should improve the user’s experience to drive more profitable traffic to your website.
Don’t be obsessed with the cost per click alone, as this is just one part of the puzzle. There are other online marketing schemes that can work hand on hand to achieving the success of your business.
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