Mastering PPC In 2024: Trends To Inform Your Strategy via @sejournal, @sejournal

Navigating PPC isn’t easy.

No one has all the answers, but get enough experts together, and you can discover powerful PPC trends.

Which is exactly what we did.

As pay-per-click (PPC) marketing evolves with new trends constantly emerging, it can be hard to know where to focus your efforts.

What worked for your PPC campaigns in the past may no longer cut it.

Not only do consumers continue to change, but the technology available to marketers is always advancing – not to mention search engines and social media platforms throwing curveballs into the mix.

Between widespread adoption of AI, inflation in cost-per-click (CPC) budgets, and new shifts in user engagement, we’ve seen a lot of changes in 2023 that will shape your PPC strategy moving forward.

So, if you’re looking to get ahead in the dynamic world of PPC, the key is adapting and knowing when to pivot.

Download our PPC Trends ebook to access expert insights on what’s coming, what you should pay attention to, and what to avoid.

This sixth edition features commentary from 13 of the top PPC marketing experts. Inside are the latest developments over the past year and how you can leverage these trends in 2024 and beyond.

Let’s dive into three of the core ideas outlined in the ebook:

  • AI in PPC: The potential these new tools offer, along with the limitations that can lead to pitfalls.
  • How to control your budgets and maximize value amidst CPC inflation.
  • The new user engagement channels shaping PPC, and what you should focus on.

AI In PPC: Potential & Limitations

AI had its moment in the spotlight this year, with several shiny new AI features making their debut on PPC platforms. Marketers also began adopting generative AI in earnest.

But now that the dust is settling, we’re realizing that it’s not all black and white.

While some experts champion the benefits of AI, like automated ad campaigns, others advise caution.

AI has its strengths, but it’s not a universal fix – and human thinking and creativity still drive online interactions.

Here are three key AI insights from the ebook:

  • AI is very good at the things it’s good at, and very bad at the things it’s bad at.
  • AI is a square peg, so beware of round holes; AI is not a panacea.
  • AI can be a multiplier of productivity and results, but some processes are worth the difficulty.

So when it comes to AI, tread carefully, use it where it shines, and remember that the power of the human touch remains invaluable.

CPC Inflation: Controlling Budgets & Maximizing Value

Inflation has cast its shadow far and wide, from the grocery store to business supply chains – and even in your ad auctions.

As you brace for these rising costs, you can refer to this ebook for expert tips and guidance on how to navigate CPC inflation.

One key point to note is that it’s not always about directly seeking cheaper CPC prices, but rather extracting maximum value from your CPCs as they are.

Here are three key insights on CPC inflation:

  • Cost-cutting, for its own sake, isn’t always the way.
  • Don’t obsess over what you can’t control; make the higher cost worth it.
  • Don’t mindlessly follow the metrics fed to you. Validate your data.

Download PPC Trends 2024 to learn more.

Lean Into New Developments & New User Engagement Channels

With all the potential challenges on the horizon for 2024, diversification is a way you can insulate your businesses from disruption.

But broadening your channels and data sources is no small feat.

First, you need a crystal-clear cross-platform strategy, a unified messaging approach, and a consistent brand identity.

You must also be willing to experiment to discover positive and negative outcomes.

Plus, you’ll need buy-in from stakeholders to be flexible about key performance indicators (KPIs) – and be willing to engage in activity that’s more difficult to measure directly.

Here are three key insights on how you can lean into change, but in service of marketing strategies that have always been effective:

  • Meet people where they are isn’t a new concept, but it will require you to learn new platforms and new ways of engagement.
  • Stubborn adherence to one channel or one data source won’t work: You need new channels, new sources of data, and a model to draw insights from various sources.
  • Embrace the new in service of what you’ve always known about marketing.

Discover more of the trends that made waves in 2023 and are set to reshape the future of advertising.

Read expert insights from:

  • Akvile DeFazio, Founder, AKvertise.
  • Alex Macura, Founder/CEO, Your Digital Assembly.
  • Amalia Fowler, Principal Strategist, Good AF Consulting.
  • Amy Hebdon, Founder + Managing Director, Paid Search Magic.
  • Andrea Atzori, Director, Ambire.
  • Ben Steele, Senior Editor Ebooks, Search Engine Journal.
  • Ben Wood, Director of Growth & Innovation, Hallam.
  • Corey Morris, President/CEO, Voltage.
  • Ginny Marvin, Ads Product Liaison, Google.
  • Lauren Weisel, Director of SEM, Media.Monks.
  • Lisa Raehsler, Founder and SEM Strategy Consultant, Big Click Co.
  • Navah Hopkins, Evangelist, Optmyzr.
  • Tim Jensen, Sr. Search Marketing Specialist, M&T Bank.

Grab your copy of PPC Trends 2024 for expert insights and actionable tips to prepare for the year ahead.

Mastering PPC In 2024: Trends To Inform Your Strategy


Featured Image: Paulo Bobita/Search Engine Journal

Agile Budgeting: What It Is, Why It’s Impactful, And How To Make It Work For You As A Marketer via @sejournal, @adsliaison

You might have heard “agile budgeting” referenced during the keynotes at Google Marketing Live this year.

I had several people ask me about what it means – and some were skeptical when I explained a bit about it.

Is this just another buzzy term, or is there real value to it? Let’s dig in.

You may already be familiar with the concept of Agile in project management to prioritize project speed and enable the flexibility needed to quickly adapt to change.

Similarly, the goal of agile budgeting is to allow you to respond quickly to shifts in demand and prioritize spend in the areas of greatest opportunity.

Think:

  • Proactive rather than reactive.
  • Real-time rather than retrospective.
  • Unified rather than siloed.

I know, I know…hasn’t one of the great benefits of digital marketing always been about agility and the ability to quickly shift budgets, test, and iterate?

Yes, but the reality has also been that channels have typically been managed in silos, and budgets have often been planned over fixed time periods.

And, of course, there are AI advancements now enabling much faster responses to market shifts. This is causing many marketers to rethink what agility really looks like.

When you’re budget agile, you can respond much faster to market and business dynamics versus being constrained by fixed budgeting that’s based on a strict timeline, specific channel silos, and other constraints.

That’s a fundamental shift for many businesses and agencies – particularly for teams and individuals accustomed to working and budgeting by channel.

As with any new approach, agile budgeting requires re-thinking, re-organizing, and re-prioritizing.

Specifically, it requires tight coordination across marketing, sales, and operations – with marketing and finance, in particular, working closely together.

OK, But Is It Worth It?

Changing how your business plans, allocates, and optimizes digital budgets may sound daunting (small organizations are often at an advantage here!). Still, research shows that companies don’t have to make dramatic changes to become more budget-agile.

You can probably think of a few ways you can fairly easily tweak and improve certain behaviors in how you, your teams, and your agency work.

In fact, you may already be starting to practice agile budgeting even if you don’t have a formal process yet.

Agile budgeting is the concept behind AI-powered cross-channel campaigns such as Performance Max.

Instead of allocating a certain amount to each specific channel, your budget is applied dynamically wherever there is demonstrated customer demand.

The goal is to find incremental conversions or conversion value at your target regardless of channel.

To gauge how many marketers are considered budget agile and to better understand the factors in doing agile budgeting successfully, last year, Google partnered with Kantar to survey more than 2,400 marketers around the world.

In the study, marketers who adjust budgets across digital channels on a weekly or more frequent basis are considered behaviorally budget agile.

(You can see why close cross-functional coordination is important!)

Nearly a quarter of those surveyed met that standard.*

Some Quick Findings From The Survey

  • 31% of budget agile marketers engage in formal marketing planning to align on strategy and digital media budget allocations every month, versus 18% of non-agile marketers.
  • For 59% of budget agile marketers, digital budget changes of 20% or more take a week or longer for approval.
  • 31% of budget agile marketers say it’s “very easy” to get additional budget to start new tests that weren’t included in the initial media budget, compared to just 9% of non-agile marketers.
  • 48% of budget agile marketers state that their marketing performance exceeded internal expectations and marketing KPIs, compared to 33% of marketers who are not budget agile.
  • Budget agile marketers are twice as likely to call their marketing across channels “very tightly integrated.”
  • 42% of budget agile marketers say their agency partners greatly influence adjustments they make after initial budget planning, compared to only 31% of non-agile marketers.

Key Takeaways To Become More Budget Agile

AI advancements are opening up all types of new digital marketing opportunities, including multichannel campaigns, and with that, we see many organizations and agencies reevaluating their approaches to maximize ROI.

Here are the areas of focus identified from the survey that can set marketers on the path to greater agility:

Flexible, Frequent Planning

Agile budgeting doesn’t mean you throw your planning process out. It means you plan and prepare for change, providing space to adapt and shift as conditions change.

And it likely means increasing the frequency with which you revisit and adjust your plans.

Common Goals & Measurement

Align on the marketing goals that make sense for the business, such as sales revenue, profit margins, lifetime value, etc.

Then, implement consistent measurement and metrics across marketing and cross-functional teams to be able to assess and adjust together.

More Collaboration Across Teams

Being budget agile also doesn’t mean you need to move away from having in-house or agency teams and individuals focused on specific channels.

But breaking down organizational barriers to ensure those teams and individuals are collaborating, meeting, and sharing more regularly together is key. This takes commitment and effort but can start paying off quickly.

Strong Finance Partnership

Establishing trust, understanding, and close partnership with your CFO and finance teams is also key to being able to move toward budget agility.

Operational Alignment

As you can see from the data above – if not from your own experience – a big stumbling block to being budget agile is getting timely budget allocation or reallocation approvals.

Nearly 60% of budget agile marketers said digital budget changes of 20% or more take a week or longer for approval.

Getting a sizable budget approval in less than a week may sound Herculean, but consider if your competitors are among the 40% that can do so and seize on new opportunities to drive incremental value or experiment faster.

Experimentation Baked In

As digital marketers, we’re accustomed to running tests and experiments on an ongoing, regular basis.

But there’s nothing more frustrating than wanting to launch a new test or scale a promising one and running up against fixed budget constraints.

Nearly one-third of budget agile marketers said it’s “very easy” to get incremental budget to kick off new tests, versus less than 10% of non-agile marketers.

Again, this points to the value of aligning across the organization on goals, measurement, and an operational framework that will allow you to move faster.

Bringing flexible planning and budgeting processes into your digital advertising efforts will allow you to laser focus on driving growth by allowing you to readjust your forecasts and invest where opportunities crop up with greater speed and coordination.

The payoff can be worth the effort to get there.

More resources:


Featured Image: fizkes/Shutterstock

*Google/Kantar, Budget Agility and Channel Desiloing research, AU, BR, CA, DE, IN, JP, U.K., U.S., advertiser: digital display n=1,747, social media n=1,936, search n=1,513, online video n=1,538, mobile-only formats (e.g., in-app advertising) n=907, streaming/connected TV n=230, other digital n=2,093, March 2022–June 2022.

Trends In Paid Search: Navigating The Digital Landscape In 2024 via @sejournal, @hethr_campbell

The search marketing landscape is evolving rapidly with new technologies. This year alone, we’ve seen the rise of generative AI, new developments in automation and voice search, and the emergence of new ad formats.

We understand the challenge that professionals like you face. How do you know which ways to innovate with your paid search strategies?

What’s the best way to meet these changing demands without sacrificing efficiency or ROI?

No matter how you look at it, one thing is clear: it’s time to start planning new paid search strategies to keep up with these changing trends.

It can feel daunting – that’s why we want to help.

Get the on-demand webinar now, and learn the top trends in paid search advertising expected to gain traction so you can drive higher ROI more efficiently in 2024.

Paid search experts Sreekant Lanka from iQuanti and Irina Klein from OneMain Financial will dive into the future of paid search and explore the trends, strategies, and technologies that will shape the search marketing landscape.

Get actionable tips on:

  • The latest trends in AI and automation, and what this means for an evolving paid search ecosystem.
  • New developments in privacy and data regulation.
  • Emerging ad formats that are expected to make an impact next year.
  • How new focuses on voice search & visual search are expected to affect paid search marketing.

2024 is just around the corner, and with so many innovations in paid search, it’s never too soon to start planning your paid strategy and stay ahead of your competition.

Learn more in our on-demand webinar, where you’ll have an opportunity to assess your paid search strategy and design an industry-aligned plan for 2024.

Ensure your strategy is set up for the new year and take advantage of the developing trends ahead.

Here’s the presentation:

Join Us For Our Next Webinar!

How To Boost 2024 SEO Performance With Pillar Pages & Topic Clusters

Join SEO experts and Conductor’s Customer Success Managers, Alex Carchietta and Zack Kadish, to learn how effective pillar pages and clustered content improve site structure, internal linking, and on-page SEO.

How To Calculate Your Total Addressable Market (TAM) For Powerful SaaS Go To Market Strategies

This post was sponsored by Directive Consulting. The opinions expressed in this article are the sponsor’s own.

At a standstill about how to best market your new tool?

Wishing you could accurately know which ads will return the highest qualified conversion rates?

Does reaching out to businesses often end in learning that they’re not a good fit for your company?

When it comes to SaaS marketing, the key to success is knowing what’s truly attainable with your tool’s features and solutions plus the audience that’s open and ready to buy a new tool.

So, who exactly are these potential B2B customers who are looking for your new tool amid the competition? Your Total Addressable Market (TAM).

Don’t know what a TAM is or how to create one? You’re not alone.

Using a TAM list for your advertising reduces that waste, assuring all your advertising dollars are spent on the right companies your sales team would love to talk with.

For the most powerful go-to-market strategy, your market differentiator will be clear when you consider your true, total addressable market to your SaaS marketing strategy.

With this guide to creating, building, and knowing your TAM, your upgraded SaaS platform’s GTM strategy will be able to:

  • Guide more productive resource allocation.
  • Improve your budget allocation.
  • Make more accurate pricing decisions.
  • Guide strategic decisions.
  • Create higher-converting advertising.
  • Create your ultimate go-to-market strategy.

Understanding and creating your total addressable market, or TAM, is essential for any SaaS company.

If you’re a little uncertain, don’t worry; Directive’s own SaaS PPC experts finessed the exact process here for you. This is based on our own experience as well as hundreds of other SaaS businesses that have used this same process and are seeing serious results.

First, let’s understand what a TAM is and why it’s important.

What Is A TAM?

A Total Addressable Market (TAM) represents the potential market size for a particular product or service.

It identifies the factors that make up your best-fit customer base.

It looks at all businesses and individuals that could benefit from or have a need for your offering and afford your pricing based on:

  • Demographic data.
  • Geographic areas.
  • Firmographic data.
  • Technographic factors.

Why Is Building & Understanding Your TAM Important?

Understanding your TAM helps your business assess your growth potential and make informed decisions about market entry and resource allocation.

It’s important because it helps guide your go-to-market strategy.

TAM is a crucial concept in business strategy and market analysis as it helps companies gauge the total number of potential customers and the size of the revenue potential.

Most people use third-party data, such as industry targeting on platforms like LinkedIn and Facebook/Instagram, when advertising with paid social media. This approach is flawed because of how each platform categorizes companies in certain industries. This results in a lot of wasted spend on companies you could never work with.

Using a TAM list for your advertising reduces that waste, assuring all your advertising dollars are spent on the right companies your sales team would love to talk with.

How To Build A TAM List

It’s not a good idea to grab the entire market; instead, you should start with a bottom-up approach, looking at our best customers.

Step 1: Create A Lookalike List Of Your Current VIP Customers

When building a TAM, you first need to understand the criteria we’ll use to determine the total available market.

To do this, export a .csv list of your current customers with the following criteria:

  • Company name.
  • Company website.
  • ACV (Average contract value).
  • LTV (Lifetime value) or how long they’ve been a customer.
  • Close rates.
  • Any other information that would be helpful to determine the best customers such as NPS (net promoter score).

Note: If you don’t have enough customer data, you can pull late-stage opportunity companies to get a more extensive data pull.

CRM Customer report with client lifespan and MRRImage created by Directive Consulting, October 2023

From there, you want to upload that list to any data provider such as Zoominfo, Clearbit, Apollo, or Crunchbase. There are many options to choose from, but you’ll want to choose the one best for you.

You’ll then want to upload that customer list (A CSV file) to the data provider of your choice.

Once uploaded to the data provider, append any data that would be helpful for your company. At the minimum, this should be:

  • Company name.
  • Company website and domain.
  • Employee size.
  • Industries (categories and tags).
  • Revenue amount (Please note this is most accurate if your potential customers are public companies, private is often inaccurate).
Appended data in Zoominfo for your TAM analysisImage created by Directive Consulting, October 2023

Most of these data providers will also provide you with more data alongside the above.

Depending on your company, there are often other traits you’ll want to add in as a column as well, such as:

  • Emails sent (If an email provider).
  • IT tech spend.
  • X department headcount.
  • Funding rounds and amounts (Especially for software companies).
  • Certain technology used.

Now we want to export it from the data provider and append it to your customer list so now you’ll have extra columns and data next to your customer list so you can see things such as ACV by employee size range and industries, highest LTV customers by IT tech spend or technology used.

Step 2: Export “Look-A-Like Audience” Of Best-Fit Customers

Now that you’ve determined your best-fit customer criteria, you will go back into the data provider and create a list of companies that fit that criteria.

Once you’ve found all the companies that fit that criteria, you want to export it and manually verify it’s correct.

Step 3: Manually Verifying Your Data

Now that you’ve exported the list of “look-a-like” companies from your data provider, the list building isn’t done.

We still need to go through each of them and manually verify them. This is because none of the data providers are perfect in how they classify industries and companies.

Download Template – See this template here of a TAM list set up with manual verification and tiering.

If you don’t go through and check each website, you’ll find companies that shouldn’t be in the industry you chose, we’re acquired, or the website redirects to another (Or worse, a 404 error).

Your marketing and sales teams can spearhead the manual verification process, or outsource it to VAs with precise instructions to help determine if the company fits within the criteria you chose.

Example of data pulled from a data provider for manual verification.Image created by Directive Consulting, October 2023

Don’t Skip The Manual Verification Process

Do not skip over this part of the process, as it is imperative. On average, across many data providers tested, we found that 50% of the companies on that list won’t be in the right industry.

This part is critical; if you don’t manually verify the data, you’ll waste a lot of ad spend and resources on companies you could never work with.

Step 4: Segment Your TAM List

After manually verifying your TAM, you’ll want to segment it into tiers. The number of tiers will depend on the size of your TAM and the criteria that make a better and higher ACV client. Less is more here, but you want to split the TAM into market segments to better allocate budget and resources.

For example, if you have 10,000 companies in your TAM list, you could split it into three tiers:

  • Enterprise (Over 1,000 employee companies).
  • Mid-Market ( 100 to 999 employee companies).
  • SMB (Under 100 employees).

This split allows for better allocation of your budget within the advertising platforms, life cycle stage progression (As larger companies usually have a longer sales cycle), and sales routing (Ex: Enterprise accounts to Enterprise AEs).

Download Template – See this template here of a TAM list set up with manual verification and tiering.

Step 5: Aligning Your TAM With Your Go-To-Market Strategy

Now that you have your manually verified TAM list and segmented, you can use it in your go-to-market strategy.

This TAM list should be the backbone of your marketing strategy.

CRM Upload

The first thing you’ll want to do is upload it into your CRM and tag it with something like “Enterprise TAM, SMB TAM, etc. ” this way, everyone in your org will be able to see what accounts are in your TAM, engagement, market share taken as well as inform strategy.

Advertising

It’s a great idea to utilize this list in your paid social advertising. It’s best used with LinkedIn Conversation ads as you can upload the list and target these specific accounts, so you’re wasting your dollars on companies you can’t work with.

Nearly 50% of your ad spend is wasted pre-impressions if relying on industry targeting.

You can also do this in programmatic platforms that allow you to upload target accounts for the targeting.

You can also do this on Facebook and Instagram if using a B2B targeting tool such as Metadata, Clearbit advertising, or Say Primer, where you can import B2B audiences such as your TAM list into Meta for advertising.

Unfortunately, this isn’t possible with the current native targeting that Meta offers.

Create Your TAM & Use It

Creating a TAM is essential for any business, especially for B2B and technology companies. This market research guides every aspect of your go-to-market strategy to help you hit growth goals.

It requires some upfront work and hours, but you won’t regret it.

Need help building your TAM or, more importantly, using it in your go-to-market strategy to drive more pipeline and revenue? Our team at Directive would love to meet you 👋


Image Credits

Featured Image: Image by Directive Consulting Used with permission.

Avoiding Keyword Cannibalization Between Your Paid and Organic Search Campaigns via @sejournal, @coreydmorris

Organic (search engine optimization) and paid search (or pay-per-click) have enough technical intricacies and strategic aspects to them to start with.

Keyword cannibalization is an issue that can make them even harder — and one that can be overlooked if your search engine optimization (SEO) and pay-per-click (PPC) efforts are siloed, contained within separate teams, or otherwise are not integrated to a level that allows you to understand, manage, and minimize it.

Keyword cannibalization is when there’s a conflict or overlap in your content, strategy, ads, or in how a search engine interprets them.

That conflict can cause unintended negative consequences ranging from creating competition with your own brand for search engine results page (SERP) space to having content ranking that isn’t the strongest option for the user intent desired.

It can happen within organic search, paid search ads, or between SEO and PPC. This article focuses on the latter, with SEO vs. PPC.

Avoiding keyword cannibalization between SEO and paid search campaigns is crucial to ensuring that cross-channel efforts are working in tandem in order to maximize your online visibility and get the most out of your marketing budget.

Keyword cannibalization in this sense can occur when paid and organic listings are competing for the same keywords, which often leads to paying for clicks on ads that you could get organically.

How To Find Out If You’re Cannibalizing Keywords

Identifying if you are cannibalizing your keywords across channels can be a pretty simple task.

First, determine which keywords you are bidding on in your paid search campaign. You can find these keywords in the Search Terms Report within your Google Ads account.

This is a great resource to use because the platform allows you to track which keywords you are ranking for organically on your website, along with the average position and what pages appear for different search results.

Once you can identify those keywords, cross-check them against your organic keyword rankings.

There are a few different tools and metrics you can use to help with this process.

  • Tools: Google Ads, Google Analytics, Google Search Console, Semrush (keyword research tool), and Screaming Frog (Website Crawlers) are all tools that can help with identifying keyword cannibalization.
  • Metrics: Impressions, clicks, click-through rate, and conversions are metrics that can be used as signs that first indicate that there is a problem across your paid and organic search campaigns.

Signs That You Are Cannibalizing Your Keywords

As mentioned above, there are a few metrics you can look at that are often used as early signs to identify if you are cannibalizing your keywords.

If you notice that your:

Organic CTR Is Decreasing

A decline in organic click-through rate (CTR) can be a red flag. The drop in organic CTR can be caused by multiple pages ranking for the same keyword.

When users are presented with similar options in their search results, trying to distinguish between the pages can lead to confusion.

Clicks Are Increasing

You wouldn’t usually assume that an increase in clicks for both your paid and organic search campaigns is something to be of concern – but this, too, can be an early sign of keyword cannibalization.

You will be able to recognize this concern if the increase in clicks is tracked across multiple pages that are targeting the same keyword.

The performance of each individual page will be negatively impacted and can lead to less traffic on your site.

Ad Conversions Are Increasing While Overall Conversions Remain The Same

Before you start celebrating the increase in PPC conversions, check to ensure you’re not paying for what you used to get for free.

An easy way to tell if you’re buying conversions from yourself is if the overall number of conversions isn’t increasing at a similar rate as your paid conversions. You’ll likely also see a significant decline in the number of organic conversions.

Monitoring these metrics regularly will help you identify any unusual inconsistencies across your campaigns and efforts and help detect the early stages of keyword cannibalization.

Once you are able to identify and eliminate current keyword cannibalization, you can take preventative steps to avoid it between your future paid and organic search campaigns/efforts.

How To Avoid Keyword Cannibalization

Develop Unified Strategies

  • Develop unified strategies for SEO and PPC that support the goals and priorities of the other.
  • If you have separate teams or agencies managing your SEO and PPC efforts, ensure they communicate and coordinate their keyword strategies.
  • Ensure that your teams understand the importance of avoiding keyword cannibalization and the potential consequences.
  • Encourage the sharing of insights and data between teams to align efforts effectively.

Keyword Research And Segmentation

  • Conduct thorough keyword research to identify high-potential keywords for both SEO and PPC.
  • Assign specific keywords and keyword groups to each strategy to avoid overlap.
  • Segment your keyword list into distinct categories or groups based on user intent, relevance, and competition.
  • Consider targeting long-tail keywords in your SEO efforts, which are more specific and less likely to conflict with broad, high-competition keywords used in PPC.

Use Negative Keywords In PPC

  • In your PPC campaigns, use negative keywords to exclude specific terms that you’re targeting in your SEO efforts.
  • Negative keywords prevent your PPC ads from showing up for certain search queries, reducing the chances of cannibalization.

Monitor And Adjust

  • Continuously monitor the performance of your SEO and PPC campaigns.
  • Use analytics tools to track which keywords are driving traffic and conversions for both channels.
  • Adjust your strategies and keyword targeting based on performance data.
  • Conduct periodic audits to identify and rectify any instances of keyword cannibalization.
  • Adjust your strategies and keyword targeting as needed.

Conclusion

Keyword cannibalization is often a hidden issue – especially when search strategy isn’t unified across paid and organic channels.

Even when it is integrated strategically, you can end up in a situation where cannibalization causes hidden issues or hinders performance.

Understanding keyword cannibalization within a channel is often much easier than detecting it and seeing a direct impact across paid and organic channels.

I highly recommend digging into it within your SEO and PPC campaigns and efforts to make sure you’re getting the performance and return you expect.

More resources: 


Featured Image: VectorMine/Shutterstock

Google Streamlines First-Party Data Management With New Tool via @sejournal, @MattGSouthern

Google has announced the upcoming launch of a new tool called Google Ads Data Manager that aims to streamline the management and utilization of first-party customer data for digital marketing campaigns.

This tool comes as marketers look to reduce reliance on third-party data.

Data collected directly from customers tends to be more reliable and valuable over time than data about customers collected from external sources like browser cookies.

However, Google says less than a third of marketers use first-party data across advertising channels.

Google Ads Data Manager seeks to improve this by providing a unified interface within Google Ads to create data connections and activate customer datasets for measurement and targeting.

Google Ads Data Manager – Key Details

Google Ads Data Manager offers a unified platform where data analysts and marketers can collaborate. Analysts can set up new data integrations, while marketers can use that data to measure conversions or personalize ads.

In the past, making these connections often led to duplicated work between analysts and engineers, who had to write custom queries.

Google Ads Data Manager streamlines the process, so no coding is required. This reduces the burden of leveraging data in marketing campaigns.

In the future, the tool promises to integrate customer data from major platforms like Salesforce and Lytics, where many brands build audience profiles and analytics repositories.

Google is also developing connectors to assist businesses in accessing their data regardless of where it’s stored.

Availability

Google plans a full launch of Ads Data Manager in 2024, starting with core features like conversion measurement and customer list activation within Google Ads.

Support for more advertising products like YouTube will follow.

Investing In First-Party Data

Companies that start cultivating direct relationships and first-party data with customers now will be better positioned for the future when more restrictions are in place.

Google Ads Data Manager is intended to facilitate the transition from relying heavily on cookies.

Businesses focusing on transparent data practices and building consumer trust can use new tools like this to manage and use their first-party data.


Featured Image: Screenshot from blog.google/products/ads-commerce/simplifying-the-management-of-your-first-party-data/, October 2023. 

How To Get The Most Out Of Max Conversion Value And tROAS Bidding via @sejournal, @adsliaison

If you have goals such as sales revenue, lifetime value, or profit margins, you should consider using value-based bidding (VBB).

Perhaps you’re unsure of how to get started or how to value different conversions – or maybe you tried value-based bidding and didn’t see the results you expected.

Recently, I addressed advertisers’ questions and common misconceptions about VBB on social media, and I’ve pulled them all together here in one place, including links to helpful resources.

So let’s lift the hood on value-based bidding, and using maximum conversion value and target ROAS bidding.

The Basics Of Value-Based Bidding

Q: What is value-based bidding?

A: With VBB, your bids are optimizing for auctions that are predicted to deliver high conversion value. In Google Ads, that means using the Maximize conversion value Smart Bidding bid strategy with the option to add a target return-on-ad-spend (tROAS) for your campaigns.

Q: Who should use value-based bidding?

A: Online sales are usually the first use case that people think of for VBB, but it can also work well for lead generation and brick-and-mortar businesses of varied sizes and conversion cycles.

The key to using VBB successfully in Google Ads is setting values for the conversions you’re tracking and feeding the right first-party data into your account, so the system can optimize to find more of the value you want to maximize.

You can import LTV, profit margins, gross merchandise value, etc., data to Google Ads to optimize for the values that matter most to your business.

Q: Doesn’t Google know the meaning behind the values I pass for bidding?

A: No, Google only interprets your values as a scale to inform decisions to help hit your targets. That’s why we continue to build ways to share data in privacy-safe ways, such as Enhanced Conversions for web or leads.

Q: Is my conversion value data used to help my competitors?

A: Google’s bidding algorithm models train on highly aggregated advertiser data to continuously learn and improve predictions. We never share your conversion values or volume with other advertisers.

Key Target And Conversion Considerations

Q: What does setting a target ROAS do?

A: When you set a ROAS target, it will optimize towards getting as much conversion value as possible on average at that target.

If you want to drive certain ROAS goals, you should explicitly set a target and use that to manage your campaign spend. This is also usually recommended, especially if you’re able to have unconstrained budgets that can allow you to take advantage of peaks in demand.

In fact, to fully allow the system to hit the ROAS target, it’s crucial to have unconstrained campaign budgets. When budgets are constrained, you may notice that the system will overachieve your ROAS target.

Target ROAS is available for single campaigns or a portfolio strategy across multiple campaigns.

Q: Are there conversion minimums to use VBB?

A: If you’re tracking conversion values, you can use Max conversion value bidding.

With tROAS, most campaign types need at least 15 conversions in the past 30 days. More specifically, we recommend that primary conversions have at least 15 conversions within the last 30 days at the conversion tracking level.

Check out the “Before you begin” section here for additional guidance.

Q: What if I don’t have enough bottom-funnel conversions?

A: We recommend optimizing for your lowest-funnel conversion action, but you can use a higher-funnel conversion action if value measurement is an issue.

If you have many campaigns with the same goals, take a look at simplifying and consolidating your campaign structures by performance objectives (e.g., the same target ROAS) to give Google’s AI the most data and flexibility.

Using shared budgets and portfolio strategies is also an option to consider for campaigns with the same performance objectives if you’re not yet ready to consolidate campaigns.

Q: What are the best practices for using multiple conversion actions with different values?

A: You can use multiple conversion actions with different values. The best practice is to upload the true values of conversions that are aligned with your business goals.

As mentioned earlier, there’s flexibility in how you define the value you want to maximize, whether it’s sales revenue, profit margins, lifetime value, etc.

Additionally, consider adding more values based on your other marketing objectives or sales channels for your business, such as new customer acquisition (more on that below), store sales and conversions, and app conversions.

And remember that any conversion actions that are included in the conversions column will be used to inform max conversion value/tROAS bidding.

Setting Values & Optimizing To Your Goals With VBB

Q: Can I use VBB if I don’t know the value of conversion actions in my sales funnel?

A: Some companies have LTV, profit margins, gross merchandise value, etc., data that are ready to be imported into Google Ads, but many businesses aren’t there yet. VBB can still work by using proxy values.

In lead generation, typically, some conversion actions will be more valuable than others. We recommend optimizing to a single funnel stage – for example, lead submissions – whenever possible, because the system will seek to maximize total value at your target or budget.

This conversion values calculator can help you gauge the average value of stages in your sales funnel based on the values you do know to get started.

As you start experimenting, be patient. It can take time to establish the right proxy values that drive meaningful value to the business. And as long as you’re not switching conversion actions, you can use campaign experiments.

Learn more about conversion values and how to set them.

Q: How do I minimize conversion volume loss when switching to tROAS from tCPA?

A: Often, advertisers wonder why their tROAS tests result in lower traffic and conversion volume.

You should, in fact, expect lower conversion volume when moving from conversion-based bidding to value-based bidding.

That’s because the system is optimizing for the most conversion value instead of the most conversions within your targets. It aims to maximize conversion value within your budget and ROAS constraints and will bid away from conversions that don’t fit those parameters.

ROAS targets are your lever to make your ads more or less likely to enter the auction. The higher your target, the fewer auctions your ads are likely to enter – while lowering your ROAS target will typically increase the number of auctions you’ll enter and thus increase your reach.

If you want to use tROAS and maintain a certain level of traffic, bid simulators can help you understand the tradeoff and see the impact that setting lower or higher ROAS targets may have on reach and conversion volume.

Q: What if I want to optimize for new customers with VBB?

A: If you have value goals but also need to acquire a specific number of new customers, consider VBB with new customer acquisition goal (NCA) bidding.

Available for Search and Performance Max campaigns, with the NCA goal, you can choose to optimize your campaign to bid higher for new customers or to bid for new customers only.

Testing & Evaluating Value-Based Bidding

Q: How can I test VBB?

A: You can use campaign experiments to test switching to max conversion value/tROAS bidding.

When testing value-based bidding, you should evaluate whether the experiment arm drove more value than the control arm.

Be sure the bidding system has learned from your values and that your ROAS target aligns with historical performance to help ensure conversion quality.

Q: How long should I wait to measure tROAS performance?

A: We typically suggest giving the bid strategy two weeks or three conversion cycles before evaluating to give the strategy enough time to learn and adapt. That said, it may take longer to ensure you have enough conversion data to evaluate.

Optimize For What Matters Most To Your Business

If you’re just starting to think about value-based bidding or considering giving it another go, keep in mind that one size doesn’t fit all.

Map out the strategy, account structure, and data signals that will enable Google Ads to optimize for the value that matters most to your business, and then test and iterate on what you learn!

More resources: 


Featured Image: Pikovit/Shutterstock

How Important Is The Keyword In Paid Search? via @sejournal, @navahf

The keyword is both dying and thriving right now.

They are instrumental in providing direction for our strategies.

Additionally, they are a core component of how the most popular form of digital marketing (search) functions.

However, their mechanics have undeniably changed over the years.

Visual content is rising in popularity, and audiences are pushing ahead as a major targeting source.

This post will explore the history of the keyword, its current state, and whether it will retain its relevance or gradually fade into obscurity.

It will not pass judgment on how keywords are used in today’s marketing strategies.

However, we will explore aspects that folks continue to use in spite of depreciating utility.

A Look Back: The Journey Of Keywords

Historical Mechanics Of Keywords

In the past, keywords had a very specific role. Each keyword represented a unique idea, corresponding to specific user queries.

For example, the phrases “dog walker,” “dog walking,” and “walk the dog” would all be treated as different ideas. This allowed us to bid on how people think and search.

Traditionally, keywords behave as our representatives in the auction every time a user enters a query.

Based on the bid and quality score, we receive an ad rank, which determines where the ad will appear on the search engine results page (SERP).

In the old days, match types highly impacted keyword theory due to their distinct properties:

  • Broad: So long as any part of the core idea matched, the keyword would enter the auction.
  • Modified Broad (RIP): Each word in the keyword had to be present but could be in any order, and there could be terms before and after.
  • Phrase: The keyword phrase could not be interrupted, but there could be terms before and after.
  • Exact: Only the exact keyword would trigger the auction.

These keyword match-types would enter the auction at different times (exact first; broad last), so bidding on all match-types with different bids was meaningful.

This would ensure coverage while communicating where the advertiser wanted the budget to go.

The Rise Of Close Variants

2016 saw a lot of things change. Google removed the right-hand side of the search results page and introduced “close variants.”

Close variants have expanded quite a bit in recent years but used to be contained to quality of life matching.

For example, an advertiser would no longer need to bid on abbreviations or misspellings.

Search term reports showed whether the match type was “vanilla” or a close variant.

This meant we could see which keyword variant represented the best return on investment (ROI) without having to use every possible version of the keyword.

Fast forward to 2018-2019, and close variants became even more disruptive. Implied words and synonyms were acceptable in all match types. Additionally, mod. broad was sunset.

By the 2020s, broad match started to include audiences, which brought it back into popularity. Meanwhile, phrase and exact match enjoyed equal popularity with control-oriented advertisers.

Keywords As Audiences

While search keywords were undergoing these transformations, audience-based keywords were starting to make their way into display and video campaigns.

These keywords had different but equally powerful functions:

  • Topic and Content Targeting: Bidding on placements corresponding to the content of the keyword.
  • Custom Intent: People who search in a certain way or who show interest in the keywords you picked.
  • Audience Signals: In PMax campaigns, advertisers can build an audience signal based on desired keywords.

Negative Keywords

Negative keywords are just as critical as targeting keywords.

Like regular keywords, negatives have match types:

  • Broad: So long as the words in the negative are there in any order, the ad won’t enter the auction.
  • Phrase: The negative keyword phrase order needs to be maintained in order to block traffic.
  • Exact: The exact negative keyword (nothing added or removed) will stop the ad from entering the auction.

Negatives retained their utility and never took on close variant properties.

This means advertisers would need to include all variants as negatives if they wanted to block traffic.

It also made it tougher to justify keeping match-type driven campaigns and single keyword ad groups (SKAGs) due to how many negatives would be needed to protect those structures.

Keywords Today

One of the reasons why keywords are so important is that they are a common ground for both SEO and PPC.

They can be used to work together to create content and bid strategies.

But, with the search term report starting to hide search queries, this common ground is starting to disappear.

In today’s world, where privacy is super important, we now have to guess the best keyword concepts based on traffic forecasts and performance.

Additionally, Performance Max represents an all-in-one campaign type that only uses keywords as an audience signal.

It’s gaining momentum for a few reasons:

  • More and more advertisers are being pressured to adopt it due to sunsetting features.
  • Genuine utility for brands looking to communicate with their customers at all stages of the buying journey.

Are Keywords Still The Best Guiding Star In Targeting Strategies?

While keywords do require people to search in specific ways, they may not always line up with the world’s focus on privacy.

In a world where protecting the consumer is the number one priority, it might be better to focus on your audience and the creative elements of your campaign.

This is especially true as the privacy-first web forces more protections on what data is shared with advertisers.

One of the reasons search terms will be hidden in the report is that there aren’t enough people searching in that way.

As such, an advertiser would have no problem matching the exact way a person searched to the person who became or didn’t become a customer.

As that level of data becomes a privilege instead of a right we need to get more comfortable with cohorts.

That said, you can still put proactive protections (negative keywords and audience exclusions).

The Future Of Keywords

Instead of focusing on the keyword, we may soon be focusing on audiences and building strategies that meet customer needs.

Two examples of this shift are shopping campaigns and local service ads.

Shopping campaigns work by using Google’s algorithm to read your feed and match user queries based on info like product title, description, and category.

Local service ads don’t use keywords at all, instead focusing on reviews, proximity, and how well a query likely applies to a service you’re bidding on.

These ad types consistently provide great ROI and show that actively bidding on keywords is less important than understanding the people behind the queries.

Final Takeaways

Keywords have been a key part of digital marketing for a long time.

While their role is definitely changing, they still have a pivotal place in campaign strategy.

Audiences and feed-based campaigns represent the future of active targets.

More resources: 


Featured Image: ING Studio1985/Shutterstock

How To Switch From DSA To PMax To Future-Proof Your Google Paid Ads via @sejournal, @siliconvallaeys

Change is the only constant, especially in digital advertising – and you’ve probably heard some whispers about Dynamic Search Ads (DSA) taking a backseat to Performance Max (PMax).

While Google hasn’t announced a sunset of DSA, it’s worth figuring out how to use Google’s new darling – PMax – to achieve similar results.

Let’s look at what’s happening to these two ways to automatically run ads for your site, and cover how to switch from DSA to PMax to get ahead of the inevitable transition.

Performance Max Campaigns Eclipse DSAs

DSAs have been a reliable tool for advertisers for several years, allowing businesses across industries to harness their organic search strength for PPC campaigns.

Despite their effectiveness, there’s an observable shift towards PMax campaigns.

CPA and lead volume in an account running DSA and PMax with URL expansion. Screenshot from Navah Hopkins from Optmyzr, August 2023

See the CPA and lead volume in an account running DSA and PMax with URL expansion.

PMax campaign drives more conversions at a better CPA than DSA ad groups in the same account.

Many advertisers have reported a similar shift and now see fewer impressions to DSAs that used to drive significant volumes. And that shift away from DSA impressions is especially noticeable in accounts that also have PMax campaigns.

Even though Google hasn’t released an official statement, indicators point towards PMax campaigns eventually replacing DSAs.

Google hints that DSAs capabilities may be replaced by PMaxScreenshot from X.com, August 2023

Google hints that DSA’s capabilities may be replaced by PMax. To me, this inevitable transition makes sense.

DSAs were created to automatically create ads to fill in gaps in advertisers’ search campaigns. PMax takes that type of automation to the next level with the latest machine-learning capabilities from Google.

PMax can do what DSAs did and then some. Maintaining both systems wouldn’t make sense for Google.

While there’s speculation that PMax may eventually usurp other campaign types like search, too, this makes less sense because search campaigns have always had a significant manual element of advertiser control, which is very different from what PMax offers.

It takes just a few inputs and automates many of the details.

Forcing advertisers to use this much more automated campaign type will take a lot more convincing, especially for larger advertisers who have crafted meticulous strategies to get the very best results from their manual campaigns.

What Is Gained In A Shift From DSA To PMax

There are several important differences between PMax and DSA, including the types of ads that can be served and the types of placements available.

As you prepare to migrate from DSAs to PMax, it’s important to understand these differences so that you can take advantage of all the capabilities.

Multi-Ad Formats

One of the key benefits of PMax campaigns is their support for multiple ad formats. Unlike DSAs, PMax campaigns encompass text, display, and video ads.

This variety allows advertisers to cater to a wider audience, enhancing the user experience with different formats that appeal to diverse consumer preferences.

While PMax ads still rely heavily on advertiser-provided content for ads, Google has showcased their future ability to generate ad assets automatically based on website and YouTube content.

On the other hand, DSA campaigns’ ability to automate ads relies on the SEO of the landing pages. PMax, meanwhile, will use the newest generative AI technology, like Google’s PaLM2, to generate a wider variety of ad creative.

This innovation is happening in PMax campaigns and not in DSA campaigns which seem to be in maintenance mode only.

Thinking about one of the key value props for DSAs is that advertisers with good on-site SEO could leverage this to get more complete ad coverage.

But clearly, the web is about more than just text. So it makes sense for DSAs to also evolve towards including images and video.

But since all that development around automating ad assets is focused around PMax, this campaign type will likely continue to take away volume from DSAs and eventually take over completely.

As PMax more fully utilizes all the site’s assets, it’s likely that the resulting ads will be more compelling to consumers and drive more engagement with the advertiser’s site.

Next, let’s take a closer look at another key difference between the campaign types and how they can serve ads in different places.

Multi-Channel

Another compelling feature of PMax campaigns is their cross-channel functionality. PMax runs across various channels like YouTube, Display, Search, Discover, Gmail, and Maps.

This means advertisers can maintain fewer campaigns yet reach their audience on a broader scale, thus streamlining their advertising efforts and potentially leading to more efficient campaign management.

The notion that fewer campaigns are preferable to more campaigns is largely Google’s stance. To me, this only makes sense when considering less sophisticated advertisers.

More sophisticated advertisers, like those reading this site, will still benefit from the additional control that is gained by running more campaigns.

For example, an advertiser with a large product catalog could segment their products into different campaigns based on profit margins.

This is a simple yet effective technique for optimizing PPC towards a profit goal rather than a revenue maximization goal.

By creating several PMax campaigns, advertisers can set target return on ad spend (ROAS) levels that ensure the profitability of each campaign.

Next, let’s take a look at how the campaigns differ in how ads are dynamically targeted to an advertiser’s entire website.

Dynamic Targeting Settings

DSAs had the notable advantage of allowing advertisers to specify which parts of their website they wanted to advertise.

This function gave advertisers more control over their campaigns. For example, they could create a dynamic ad group for a specific landing page or a group of landing pages.

PMax can also do this but approaches it differently.

PMax doesn’t provide URL specification but rather allows for URL expansion. Ads can then be dynamically created to lead users to any page on the site that qualifies according to the URL expansion rules.

So with PMax, URL expansion is an on-off switch rather than a list of URLs that should be targeted.

To allow advertisers some control, it does allow setting exclusions or rules for excluding parts of their site from being included in URL expansion.

PMax campaigns with URL expansionScreenshot by author from Google, August 2023

PMax campaigns with URL expansion can set rules for excluding portions of the site from automated ad targeting.

It’s a shift in perspective – instead of choosing what to include, with PMax, you’re selecting what to exclude.

While this may require a different approach, the end result is similar – you can ensure that only the relevant parts of your website are advertised.

For example, an advertiser who wants to advertise only products in their electronics section could target URLs containing ‘electronics’ in a DSA dynamic ad group.

In a PMax campaign, the same can be achieved by excluding all other URLs besides the ones containing “electronics.”

Performance

Now that we’ve explored the transition from DSA to PMax, it’s time to focus on another critical piece of the puzzle – measuring campaign performance.

With DSAs, performance measurement is often centered around the last-click, transactional model.

We aimed to lead our audience to a sale; if it didn’t, we considered it a miss. Simple, right? Well, with PMax, we need to recalibrate our performance yardstick.

PMax’s impressive range of ad formats and multi-network functionality means it can serve as more than just a direct sales tool. PMax has the potential to excel as an upper funnel, attribution, and awareness campaign, too.

Let’s say, for instance, you run a video ad campaign on YouTube using PMax. Even if a viewer doesn’t immediately click through to your website and make a purchase, the campaign is still valuable.

It raises brand awareness, introduces potential customers to your products, and leaves an impression. That’s the beauty of PMax – it extends your reach, spreading your brand message far and wide.

And in doing so, it builds awareness for your brand, often at cost per click (CPCs) that are quite affordable when compared to the typical CPC for a bottom-of-the-funnel click.

With this shift in focus, our success metrics must evolve, too.

Instead of just tracking last-click conversions, we need to pay attention to impressions, brand recall, engagement rates, and all the other factors that guide a user from the early stages of their consumer journey all the way through the final conversion.

Data-driven attribution is an excellent option to measure campaign performance more holistically.

It’s all about understanding the wider customer journey and appreciating the role of PMax in contributing to your brand’s larger narrative.

Conclusion

So while there is no specific date at which DSAs will be replaced by Performance Max campaigns, the ongoing development that is making PMax more capable means there will be a continuing decline in DSA performance.

Advertisers who enjoy the additional volume provided by a system that automatically matches landing pages on their site to user queries should consider migrating from DSAs to PMax at some point soon.

More resources: 


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6 Ways To Optimize Your PPC Performance via @sejournal, @LisaRocksSEM

PPC optimizations are critical to improve your paid search advertising campaigns’ performance.

Before we get into our top tips, what exactly is PPC optimization?

After paid search campaigns are launched, running, and collecting data, optimizations begin.

Pay-per-click (PPC) optimization is the process of reviewing, analyzing, and editing campaign elements to improve performance based on business goals.

Now for the second big question: where should you start?

Let’s dig into some ideas to optimize your PPC performance to get you started or spark new ideas.

1. Keywords

Keywords drive ads in the search results and help match searchers with the most relevant ads.

Experts know that frequently, the search queries don’t match exactly with the keywords in the account.

This is where the keyword match type comes in.

While exact match is the most relevant to serving ads, it is also the most restrictive and can leave some opportunities behind.

On the other end of the spectrum, broad match is the most flexible in keyword matching but can lead to irrelevant searches triggering ads.

Regardless of which match type you decide on to get started, you should continually review to ensure you’re reaching the right audience.

Here are a few metrics that serve as indicators of performance for keywords:

  • CTR: The click-through rate (CTR) for search for more general keywords describing the product or service should be over 1% at a minimum. The CTR for brand terms is usually much higher at 3% or more. If the CTRs are less than that, it means the ad does not seem relevant to the user, who doesn’t click. Check search terms and ad relevancy.
  • Conversions: Compare historical conversion data to the new keywords to see how they compare and whether the keywords are not relevant enough, or match-typed too broadly.
  • Interactions, time on site, website metrics: If the traffic is not interacting with the website as you would expect, this may also be an indicator the keywords need optimizations.

2. Search Terms And Negative Keywords

Digging more into the keyword topic, oftentimes irrelevant searches or navigation searches will trigger your ads and cause poor performance.

PPC optimization needs to employ a solid negative keyword strategy.

I divide my negative keyword efforts into two categories.

Proactive Negative Keywords/Lists

Create themed keyword lists themes around parts/accessories, job hunting, products/services you don’t offer, and competitors’ names you don’t want to show up for.

For example, say your company has an employee login for your main website. You notice employees searching for the employee login are clicking on ads to reach it.

You will want to use that “login” theme to create negatives on possible searches that may occur to avoid spending PPC budget on employee searches.

Reactive Negative Keywords

Review the search terms triggering ads for the match type and keyword. Click the box next to the search term to edit, add, and exclude as appropriate.

Google Ads search term reportScreenshot from Google Ads, August 2023

Use the new negative keyword lists to apply to similar campaigns as a proactive measure. The shared lists can easily be updated in the future, with all campaigns sharing the list automatically updated with changes.

Below is a basic example of a shared negative keyword list designed to exclude searches related to job hunting that may trigger ads and waste click costs.

Google Ads negative keyword listScreenshot from Google Ads, August 2023

3. Budgets

I get asked about PPC budget strategy nearly every day, and for good reason! Managing a budget is an art; finding the perfect overall investment and campaign allocation for PPC ads takes skill.

While most advertisers set a monthly budget not to exceed, technically, the budgets are set at the campaign level for a daily budget.

Google will serve the ads to get the best results, so the actual spend may be under or over the daily budget, but will not exceed the daily budget x 30.4 days in a month.

Therefore, while keeping an eye on the spend is important, checks are in place to ensure the automation is working for you.

With that said, Google doesn’t optimize between campaigns, so it is up to you to optimize this on a regular basis. Better-performing campaigns should receive a higher percentage of the budget.

While this is a good basic rule of thumb, it isn’t always the case.

This may not apply in cases where branding and awareness or certain display campaigns don’t show many conversions. Also, company brand names may convert higher but don’t need more budget.

You can also set an account budget if you are using monthly invoicing for payments. This enables a set budget amount across campaigns with a start and end date, which is handy if you need more structured billing.

Be sure to check out 15 Tips on How to Rock a Small PPC Budget, which can help with ideas for budget challenges.

4. Responsive Search Ads (RSAs)

Responsive Search Ads (RSAs) are the standard ad type in Google Ads. Some advertisers may still have previous versions running, so those should immediately be transitioned to the most current version.

RSAs contain up to 15 headlines and 4 descriptions that automatically mix and match and test via Google Ads AI. As data is collected, Google’s learnings result in ad strength feedback ratings: poor, average, good, or excellent.

In addition to the overall ad rating, individual asset performance ratings are provided: learning, low, good, or best.

Once an asset has 500 impressions and the ad has over 2,000 impressions, it’s time to replace low-performing assets.

These ratings can serve as a guide to know which assets need optimization attention.

Using automated asset suggestions can be helpful, but use common sense and marketing writing best practices to showcase features, benefits, calls-to-action, etc.

Google Ad strengthScreenshot from Google Ads, August 2023

5. Location Targeting

It’s a good practice to optimize location targeting by business goals and performance results.

Some advertisers will use the handy set-up in the PPC platforms, which may auto-select large target areas such as an entire country, when geo-targeting is available in a number of more granular settings: state, cities, zip codes, radius around an address, and more.

Consider the following strategies to optimize the locations where your ads are served:

  • Bid adjustments – Set bids by location so that your bids increase for searchers in the area you want to reach more.
  • Layering a city over the state and adjusting the bid higher in that city to favor it over the rest of the state.
  • Excluding locations you don’t serve or where you are not likely to find quality leads or customers.

Below, in the location view, advertisers can see performance by the segment they select and then analyze performance.

Increase bids for high-producing locations, and consider reducing bids for areas that don’t convert as well or remove altogether.

Google Ads location performanceScreenshot from Google Ads, August 2023

Remember, the more granular location targeting reduces reach but can be more efficient.

That’s why it’s important to see the reports to view results for the various geo segments and optimize.

6. Conversion Actions

With the recent launch of GA4, be sure to audit your conversion actions. Some things to look for:

  • Migrate goals in Universal Analytics to GA4 right away.
  • Confirm the conversion tracking is working.
  • Confirm that the primary conversion is your business’s key performance indicator (KPI).
  • Can you add new conversion actions to get richer information on PPC results?

Consider a variety of conversion actions.

For example: tracking purchases, email signups, whitepaper downloads, or chat interactions to get a full picture of the user’s engagement and actions with the website from ads.

Bonus Tip: How Often To Optimize?

When a campaign first launches, it will need to be monitored every day (or every few days) to identify red flags and fix those issues in real-time.

An example of this is errors in set-up or disapproved assets. You want the campaign to get to a stable place where the impressions, clicks, etc., look consistent with no red flags.

The campaign needs to acquire data, so don’t make any big changes until there is enough data to analyze.

This could mean thousands of impressions or clicks, or letting three to four weeks go by, depending on the volume allowed by the budget.

Final Thoughts

Because people never stop searching, there are always opportunities to improve an account through frequent and consistent PPC optimizations.

As always, if this post generated some new optimization ideas for you, add them to your strategy and test them out today.

More resources: 


Featured Image: The KonG/Shutterstock