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Getting Higher ROAS On Your Pay-Per-Click Campaigns: Here's What To Do

Getting Higher ROAS On Your Pay-Per-Click Campaigns: Here's What To Do

Admin 18-03-2021

One of the most rewarding tactics of digital marketing is pay-per-click (PPC) advertising. It helps you reach a larger base of your customers by paying a certain amount of money for every click your ad receives. There are certain techniques with which you can get your desired results from a PPC campaign.

However, it is not as simple as it sounds for unoptimized PPC campaigns, because, reach isn’t the only thing that you need from a PPC ad campaign. Ultimately, it needs to increase your sales and profits. Otherwise, you will be spending too much money on PPC advertisements without much return.

This is where keeping track of the Return on Ad Spend (ROAS) metric helps you understand whether your PPC ad campaigns are effective enough or not. ROAS is calculated with the total profit generated from advertising divided by the cost spent on advertising.

Unlike Return on Investment (ROI), ROAS does not consider other factors like conversion rate, CPC, CTR, etc. its main focus is on how much revenue is generated from the ad. This simple metric allows you to conclude whether a PPC ad campaign is successful or not.

In this blog, we will see how you can enhance your PPC campaigns to ensure a higher ROAS.

Time is money, even for your campaign

One of the most important things about running a PPC ad campaign is if the campaign is relevant during the time period it is currently running?

If not then you need to properly time your ad to be visible at only those hours or seasons when your customers would want your products or services the most.

For example, if you are selling school furniture supplies, the best time to advertise it is right before the school term starts or right after it ends because that is when the school administration may get the time to change the furniture and not when the school is filled with children.

Similarly, if you are a vendor selling factory machines, running an ad during the holiday season may not be a good idea since the factories would be closed on holidays.

You can also time your ads according to the hours of the day that you want them to be visible. This saves you a lot of money while increasing the chances of getting quality leads from your ad campaign.

You will have to know your target audience well enough to know when is the best time to target them with your online advertisements.

Test and improve

Creating only one ad campaign for all your audience will not give you the results that you desire. You need to understand first if the keywords, creatives, and ad copy for your ad are working or not. Creating different variations of your ad will help you know which of your ads is performing better in terms of click-throughs, lead generation, and conversions.

Start with a smaller budget to know where your ads are working well, and where they are lacking. You should create different variations of your ad and see which one brings higher conversion rates. Based on the data that you gather from these ads, you will be able to make changes to your ad variations for increasing the positive metric.

For example, your ad may get impressions but the click-through rate is low, then you may consider changing the creatives and spice up your ad copy a little, and try again. Or if you see that your CTR is high but the conversion rate is low, then you may consider making changes to the landing pages.

With Google Ads analytics, you will be able to see all these metrics that will help you fix your ads for better results. Higher the conversion rate, the higher the profits.

Local business? Consider Geo-targeting

Whether yours is a brick-and-mortar business or a website that delivers products and services to only certain places, if you are running a PPC campaign, consider geo-targeting your ad.

With Google ads, you get an option to target your ads at only your selected locations. In your location targeting section, choose the “People in my targeted location”. That way you can control where people can see your ads.

It will increase quality click-throughs and reduce your cost on unnecessary impressions and clicks.

Based on your product, you can also select the locations where you know your targeted income group is. That way, you can filter out those who do not fall in the income group of your target customers.

This way, you will narrow down your audience to only those whom you can give your services and those who can afford it. Moreover, it will reduce your ad spend when uninterested people don’t click on your ad.

Create ads for each stage of the consumer journey

Your consumers are only those who buy your product but also those who are considering buying it or are yet unaware about it.

Creating one ad for everyone is not ideal because a customer who is simply aware of your product or service may not want to buy it immediately. Or a person who has decided to buy it may want to an ad spreading awareness about the product.

So, if you want to target your customers with effective ads, you will need to create different ad campaigns for different stages of your buyer’s journey.

That means an ad campaign spreading awareness will be different from the ad campaign meant for customers who are considering buying your products.

This will give you higher results from each of your campaigns and make your ads more relevant to your customers.

Retarget your customers smartly

Is remarketing your goal for your next PPC ad campaign? Then there are certain things that you must keep in mind.

Retargeting must be done based on the interest of your customers. For example, if you are selling home electronics and someone shows an interest in the rice cooker by visiting that page but not buying it, you can target them by showing new deals and offers on that and other sets of rice cookers.

This will remind them of their visit to your page, and now they can even avail an offer on the product. That may compel them to click on your ad and purchase your product.

If not, you can further target them with the benefits of the product and how it can make their lives easier. This way, you create a sequence of retargeted ads to pull the customer back to your website and make a purchase.

However, you cannot show the same ad sequence to someone who has already bought the rice cooker. That will become annoying for your customers, instead, you can show products that are frequently bought together with the rice cooker and compel them to make a second purchase from your website. Or you can show them the benefits of subscribing to the product if it is something that needs recurring purchase.

EndNote

Pay-per-click campaigns need to be created strategically to gain more conversions, and ultimately more revenue, from it. The most important thing while creating a PPC ad campaign is to know your customers and every small detail about them. Creating a buyer’s persona may help you in understanding your customers more closely. With that information, you will be able to target your clients better.

If you are running pay-per-click ads for the first time, it is recommended to outsource digital marketing professionals who can help you set up a strong PPC advertising campaign that will increase your business’s revenue. While choosing the service ask for a free trial before deciding to purchase their services.

What do you do to improve your ROAS from Pay-per-click advertising campaigns? Let us know in the comments below. Also, share the blog with someone whom it may benefit.

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