July 19, 2010

If you are just starting with a PPC campaign for your online business or already frustrated with low promotion performance, you need to understand some things about Google Adwords and generating ROI.

Sometimes, the pressure of delivering results makes you lose focus from the most important factors affecting your Adwords campaign. These include:

  • Impression rate
  • Ad position
  • Click through rate
  • Conversion rate

Basically, Google evaluates your daily budget to control the frequency of your ad display. If you have a small daily budget, your ad will show for a few hours every day. On the other hand, your ad’s position is determined by its rank number, which is calculated as follows:

Rank Number = CPC (Cost Per click) x CTR (click through rate) x (Ad quality)

To improve your PPC marketing and generate high ROI from Adwords campaign, the following steps are a must.

Ad Delivery – when searches are performed under your keyword, your ad must show up. The daily budget controls your ad display and hence, needs to be increased for maximum exposure of your website advertizements. As your actual spending depends on the click through rate, your margin on the daily budget is about 50%.

Ad Delivery per Keyword – Google will display ads according to the keywords searched by online users. Your Adwords campaign can have one or more adgroups. This constitutes of a few keywords and ads that trigger your ad. For higher ROI, you can consider splitting of keywords and creating new keywords with low impressions.

Cost Per Click (CPC) – It is important to know if clicks are made for targeted keywords. You can improve your ROI from Adwords campaign by reducing clicks on non-targeted keywords. This happens when you lower the Max CPC and your ad position. The bid can be raised for keywords that are performing well.

Ad Optimization – Creating interesting ads and linking them to relevant website content/ graphic is a good way to reach the target audience. Make sure that your ad communicates your unique selling point and why users should visit your site. The landing page should also be informative and call for action.

Located in Killeen, Central Texas, we at Centex Technologies provide complete Internet Marketing solutions for web businesses including Pay Per Click campaigns, SEO and Social Network promotions. Feel free to contact us for custom quote.

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