What is the #1 reason people lose money in paid search advertising?
Hi, I’m Stephanie part of your online marketing team here at Wakefly. If your business is advertising online, you have a tremendous opportunity to get more for your advertising dollars. With most new clients we work with, we commonly discover that they are unknowingly wasting up to 60% of their ad budget for one reason.
In this video, we are going to go over what that reason is, and how you can fix it.
It all starts with Quality Score.
In case you aren’t aware, quality scores are given to every keyword that you have in your paid search account. Quality scores are primarily influenced by CTR or Click Through Rate. The more that people click on your ads, the higher the CTR. The higher the CTR, the more relevant search engines see you.
Your quality score can determine whether you pay a 30% discount or a 300% surcharge for each and every click that you buy. It’s really important.
So how do we improve our quality score? Well, I’m glad you asked. There are two ways – Relevance and Grouping.
Let’s start with relevance… The role of a search engine is to deliver the most relevant content available to the person searching. Let’s face it, people using the internet have an incredibly short attention span. The best paid search campaigns cater to that. They do this by serving targeted ad copy to groups of closely related keywords.
Here at Wakefly; we work with companies of all sizes, with budgets that run the gamut. While the strategy is customized to meet each company’s needs, for the purposes of this video, let’s use this simple example:
Let’s say you own a lemonade stand. If you are in the lemonade business, I bet you that goal is to sell as much lemonade as possible. So, which of these sign do you think would be most effective for your business?: “Lemonade for Sale”, “Ice Cold Beverages” or “Prune Juice”? Hmm!
In Paid Search, your ad copy is the sign that drives people to your website. If your ad copy is not in alignment with the search term itself, people will not click on it. The less people that click on it, the lower the Click Through Rate. The lower the CTR, the lower the Quality Score. The lower the Quality Score, the higher the surcharge to you, and the more money you spend per click. Yikes!
Which leads us to Grouping.
If we can agree that relevance is the number one factor in whether or not people will click on your paid ad, then it’s important that we structure your paid search strategy so that your “Lemonade for Sale” sign goes to the lemonade stand; your “Ice Cold Beverage” sign goes to the cold beverage stand; and your “Prune Juice” sign goes to the prune juice stand.
Most advertisers that we come across have just one sign pointing to all of these stands.
Now that we know how important relevance and grouping are, it makes sense the best-running paid search strategies feature hundreds of campaigns and thousands of ad groups. Most people underestimate the amount of time and effort that it takes to build and maintain a successful paid search strategy. Having said that, take a look inside your paid search account. Is your “Prune Juice” sign pointing towards the lemonade stand? If it is, we can help.
Quality score(s) might be the most important factor if your company is losing money but it is just the tip of the iceberg as it relates to Paid Search. If you feel overwhelmed, you aren’t alone. For over a decade, Wakefly has helped thousands of companies grow and enhance their online marketing strategy. We would love the opportunity to do the same for you. Feel free to click the link below for a free consultation or just email us – we want to hear from you. When life gives you, lemons, give us a call.