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16 Replies Last post: Dec 21, 2007 8:03 AM by Biz Online

Three Common Mistakes in Pay Per Click Campaigns

Nov 5, 2007 9:32 PM

Click to view Biz Online's profile Mogul Biz Online 71 posts since
Oct 10, 2007
I manage pay per click campaigns for a variety of clients. It baffles me why I see the same mistakes repeated over and over in Google Adwords or Yahoo campaigns. Let's get started, shall we?

h3. Mistake #1 - Lack of use or no negative keywordsIt works like this: Let's say you sell residential swimming pools in Dallas, Texas. In your campaigns, you need to have negative keywords in the cities you do not sell in, like Arlington, Irving, Duncanville, etc. Also, since you are targeting residential customers, you need to exclude keywords that attract business or commercial interests, like apartments, condos, etc. A negative keyword can be added easily in Yahoo and Google campaigns. You will not receive unneccessary clicks, and you won't get the cost of the unneccesary clicks either.

h3. Mistake #2 - Improper targeting of ads (Network targeting)In Google Adwords, when you set up a new campaign, the Default values for the Network include the Content network. Also, the default bid for the Content network is your maximum CPC, or cost per click! The Content network include sites that show Google ads. When someone clicks on these ads on these sites, the website makes money from the click, and you get charged for a click. Most of the time, I just opt out completely, but depending on the client, I may keep it on. If I do keep it on, I make sure and change the Content network bidding, down to .05 or .10 cents a click to limit my exposure.

h3. Mistake #3 - Not testing new adsSplit testing, or A/B testing, is the process of building two ads in each adgroup. In your campaign settings, under Advanced Options, set the Adserving option to Rotate (you have to change it from the default value of Optimize). This way, your ads are served up equally. After enough impressions and click throughs, you will be able to determine the better performing ad. Pause the ad that is not performing as well, and then build a new ad. Now, with your new ad, try to beat the performance of the previous winning ad. Constantly testing your ads will, over time, dramatically increase your click through rates!

Have a question, post it here for others! And good luck with your PPC (pay per click) advertising!
Cliff
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Click to view WEBillions's profile Mogul WEBillions 154 posts since
Oct 10, 2007
1. Re: Three Common Mistakes in Pay Per Click Campaigns Nov 5, 2007 9:38 PM
A lot of the silly things people do (this included) seems to be out of either ignorance or laziness. I have no beef with ignorance, though I do wish sometimes people would make more of an effort to educate themselves. But this seems to lead me to the other point--laziness. Some people just seem to be too lazy to spend the time to figure out what really works. Seems like a big mistake since you can waste so much money.

Honestly, before I started reading this forum, I had no idea about negative keywords, so I myself was ignorant. It seems one could help a lot of people by just making these simple tips more well know.
Click to view Biz Online's profile Mogul Biz Online 71 posts since
Oct 10, 2007
2. Re: Three Common Mistakes in Pay Per Click Campaigns Nov 5, 2007 9:43 PM
in response to: WEBillions
WEBillions, the internet is 11 years young, and PPC has been around for less than that. It's not necessarily ignorance, as it is education. By educating my clients, and fixing their campaigns for improved profitability, I don't even have to advertise, as I get plenty of referral business.

Sorry for the big type in the original post, but I hope the message is clear!
Cliff
Click to view LUCKIEST's profile SCORE LUCKIEST 7,935 posts since
Aug 6, 2007
3. Re: Three Common Mistakes in Pay Per Click Campaigns Nov 5, 2007 10:03 PM
Great marketing tool. Thanks for the education. It is a fact of life, we all make mistakes.
Although initial mistakes are not fatal, it takes skill, discipline and hard work to regain that advantage.
Thanks, LUCKIEST
Click to view WEBillions's profile Mogul WEBillions 154 posts since
Oct 10, 2007
4. Re: Three Common Mistakes in Pay Per Click Campaigns Nov 5, 2007 10:38 PM
in response to: Biz Online
Oh, don't get me wrong. I didn't mean ignorance in a bad way. I use ignorance in the common definition of uneducated, like you said.

I am sure you are doing quite well by informing your clients about these tips. Good job.
Click to view Biz Online's profile Mogul Biz Online 71 posts since
Oct 10, 2007
5. Re: Three Common Mistakes in Pay Per Click Campaigns Nov 6, 2007 8:53 AM
Another note on negative terms:
Take your keyword phrase that you are targeting, and type it into google and yahoo. Now, look at all of the different web pages and sponsored ads that have "nothing to do with your keyword phrase." This will help you develop further negative keywords.

Also doing this in the Yahoo / Overture keyword tool helps you spot possible negative words that have nothing to do with your target market. Good luck!
Cliff
Click to view LUCKIEST's profile SCORE LUCKIEST 7,935 posts since
Aug 6, 2007
6. Re: Three Common Mistakes in Pay Per Click Campaigns Nov 6, 2007 9:15 AM
in response to: Biz Online
It is amazing the info you can get from google. Thanks, LUCKIEST
Click to view Biz Online's profile Mogul Biz Online 71 posts since
Oct 10, 2007
7. Re: Three Common Mistakes in Pay Per Click Campaigns Dec 8, 2007 9:48 AM
Here's Mistake #4: Pointing all of your pay per click ads to your home page!

I see this mistake all the time. If you sell five different products, and you advertise those five in your pay per click campaign, then you should have five different pages, or landing pages, to send the paid traffic to.

Cliff
Click to view LUCKIEST's profile SCORE LUCKIEST 7,935 posts since
Aug 6, 2007
8. Re: Three Common Mistakes in Pay Per Click Campaigns Dec 8, 2007 11:21 AM
Biz Online, Thanks for the education on pay per click campaigns. I will make a copy and distribute at
our next SCORE meeting. As we counsel people in business this will be informative to them.
Again thanks, LUCKIEST
Click to view CorpCons08's profile Mogul CorpCons08 1,128 posts since
Nov 14, 2007
9. Re: Three Common Mistakes in Pay Per Click Campaigns Dec 8, 2007 12:44 PM
Biz,

I was looking through older posts and came across this.
Thank you for posting this information.
I am going to save this as well.

Best wishes,
CorpCons08
Click to view MTCreations's profile Mogul MTCreations 82 posts since
Nov 18, 2007
10. Re: Three Common Mistakes in Pay Per Click Campaigns Dec 8, 2007 1:03 PM
in response to: Biz Online
Great advice. I'm setting up a PPC for a client now, and a '3rd party' confirmation of things we've been explaining to client is always welcome.

It's amazing sometimes that the hired professional (presumably the fees paid are for their expertise, right? grin) has to work so hard to dispel the cocktail party chatter, or the brother-in-law-in-the-know. This'll help.
Click to view Biz Online's profile Mogul Biz Online 71 posts since
Oct 10, 2007
11. Re: Three Common Mistakes in Pay Per Click Campaigns Dec 13, 2007 10:57 AM
h3. Most Common Mistakes - #5

Using the suggested bid Google or Yahoo recommends! Most of the time, when setting up a new Campaign/Adgroup, Y! and G will suggest bids for keywords you enter. Bid what you are comfortable with, not what is suggested. Approach bidding from a profitability standpoint, like this:


Let's say you sell a pair of red cateye sunglasses for $100.

Your product cost is $50. So you have a keystone, or gross profit of $50, and a gross margin of 50%.

For this example, let's assume customer is paying for the shipping.

Let's say you bid on red cateye sunglasses as a keyword at $1 a click.

Let's assume your ad gets 100 impressions (views), and 10 clicks.

The click through rate (CTR) would be 10 clicks divided by 100 impressions = 10%.

Those 10 clicks cost $1 each, so it costs $10 for your ad clicks.

Let's assume you sold 2 pair of red cateye sunglasses from those 10 clicks. (I had a pair of these back in college, Varnay's, so I'm dating myself !!)

So, your cost per acquisition (CPA), or cost per sale, was $10 cost divided by 2 sales = $5 CPA, or cost per sale

Revenue on 2 sales = 2 x $100 = $200

Cost of Goods = 2 x $50 = $100

Click costs = 10 clicks x $1 = $10

Your net profit would be $200 - $100 - $10 = $90

Your net profit percentage would be $90 / $200 = 45%, not too shabby.

Hope this helps!

Cliff

Click to view DomainDiva's profile Mogul DomainDiva 1,732 posts since
Oct 10, 2007
12. Re: Three Common Mistakes in Pay Per Click Campaigns Dec 13, 2007 11:53 AM
in response to: Biz Online
WOW...this is great information. Thanks for sharing!!!!
Click to view CorpCons08's profile Mogul CorpCons08 1,128 posts since
Nov 14, 2007
13. Re: Three Common Mistakes in Pay Per Click Campaigns Dec 13, 2007 12:44 PM
in response to: Biz Online
Biz,

Thank you for taking the time to post all of this information.
I have saved it for future use. I really appreciate it.

CC08
Click to view nathan@ds's profile Professional nathan@ds 10 posts since
Dec 12, 2007
14. Re: Three Common Mistakes in Pay Per Click Campaigns Dec 13, 2007 1:10 PM
in response to: CorpCons08
Three other suggestions I would add are:

  1. Make use of broad, phrase, and exact match. For example - [your keyword phrase] or "your keyword phrase" or your keyword phrase. The CPC and CTR will be different for each so experiment to find what gives you the hight CTR and lowest CPC. And like Cliff said, use negative keywords especially if you are using broad match.
  2. Use seperate campaigns and bids for the content and search network. If you show your ads on the content network take full advantage of banner, flash and video ad formats. For more info on this go to: http://www.google.com/adwords/learningcenter/text/76856.html
  3. Make sure that you direct visitors to the appropriate landing page for each Ad Group and/or individual keyword phrase. This will improve conversion and help increase your Quality Score which will help to decrease your CPC.
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