How to Maximize Your Google Ad Campaign’s Profitability

So you just started running ad campaigns for your small business, a few months go by, and you are still not seeing any sales or conversions. You have a healthy budget and target what you think are the right keywords but still can’t drive conversions. You start searching online for DIY answers to improving campaigns and how to get more conversions. You keep trying these so-called “tips and tricks,” but nothing is working.

You ask yourself: What can you do as a small business to start seeing results from investing in digital ads?

What is Pay Per Click and Search Engine Marketing?

Pay Per Click Advertising is any digital ad campaign where you pay every time someone clicks on the Ad. This includes Facebook Ads, Instagram Ads, LinkedIn Ads, Google Ads, Display Ads (sometimes they charge per 1000 impressions), Bing Ads, the list goes on.

Search Engine Marketing primarily focuses on using Google Ads to drive more traffic to your website. It is used to complement your organic SEO efforts and boost sales.

Here are several ways you can optimize your Google Ad Campaign to increase conversions and maximize your revenues.

Calculating Your Return on Ad Spend

Now, how do you calculate Return on Ad Spend (ROAS)? This chart provides you with an overview of your campaign. We recommend tracking your clicks, conversions, cost and, of course, sales! When choosing to advertise, you want to make sure your campaigns contribute to the bottom line. We will take the sales/revenue from the campaign and divide it by the cost: $13000/1120 = $11.60. So, for every $1 spent, we have made a profit of $11.60, or we have a ROAS of 11.6:1. We recommend maintaining a ROAS of 5:1 or higher. This ensures you are making a good profit and accounting for fluctuations in ad spend.

Keyword Performance

Look at your keywords and see what is performing and what is not. Even if you have a lower expected click rate, are your target keywords driving conversions? Check out the keyword “winsport pass,” it is generating over $4500 in revenue at the cost of $0.79 per click. It is important to note that this keyword contains branded search terms that should drive the most search revenue for most businesses. When creating a campaign, try to avoid branded terms and only target search terms that are relevant to your business. This will help drive additional traffic and you won’t waste money bidding for terms you already own.

Also, depending on your budget, you may want to find keywords that have lower competition. Tools like Wordstream, Ahrefs, or Semrush are great for keyword research and spying on competitors.

Pay attention to keyword performance instead of just metrics like CTRs or conversion rates

It is easy to get distracted by metrics that look good on paper but aren’t actually translating into solid performance. For example, while conversion rates are an important metric, they don’t tell the whole story about how well your campaign is performing or what factors are helping or hurting results. If you are getting low conversion rates on generic terms it doesn’t mean you should start bidding on more generic terms. It means there is probably something wrong with your landing page, your ad copy or your product offering. There are many factors at play that determine how effective a keyword will be for your campaign so it is important to dig into how each keyword performs rather than just looking at an aggregate metrics like conversion rates. If you have hundreds of keywords in your account then spending time investigating the performance of each keyword group can be extremely time-consuming so I recommend using tools like SEMrush or Spyfu to help get started narrowing down what keywords are driving conversions. If you have smaller accounts or limited time then leveraging tools can help you focus only on the highest performing keywords while also helping you identify new keywords groups for further investigation.

Top Bidding Signals

Use Top Bidding Signals to observe how devices, time, keywords and other ad factors are performing. You may not have the data to set a target CPA bid or a target ROAS bid for new campaigns and newer small businesses. It is essential to gather your conversion data and use it to improve your Google Ad campaigns over time. After campaigns have enough conversion switching to Smart Bidding will help drive the most conversions and sales out of your campaign.

Track Device Performance

An essential factor to consider when examining campaign performance is devices. You want to know how customers are making it through your funnel. In this case, we have a majority completing conversions and transactions on mobile devices.

This is a great time also to ensure your landing pages are fully optimized for mobile.

Track Events Though Tag Manager and Analytics

Are you tracking events on your site that are used to drive sales and conversions? Tracking events is one of the most critical steps in running a successful Google Ad campaign. You want to ensure you build out conversion action sets and choose the maximize conversions bidding strategy.

Conversion tracking is one of the fastest ways to know if your landing pages and Ads are performing well. On each landing page, you want only to have one clear call to action.

Hire A Pay Per Click Management Agency

If you find all of this overwhelming and highly confusing, it is time to consider outsourcing the management of your pay-per-click campaigns. Our Agency can handle the creation, optimization and everything in between. We have a proven track record and are one of the Top Pay Per Click agencies in Calgary. Contact us today for FREE consultation and audit of your pay-per-click campaigns. Drop us a line at [email protected].

About Display Digital Marketing

For the past 7 years, we have helped Calgary small businesses create their brand presence and achieve their goals through digital marketing. Our process empowers your brand and outfits your business with the digital marketing tools needed to succeed. Talk to us today about supporting your growth, increasing your brand awareness, and putting you on a solid track to success and profit.

We use an analytical approach when onboarding clients. We look at your business from the bottom up, identify KPIs that matter, and create digital strategies that best use your dollars. Our service includes a comprehensive consult to improve your conversion funnel, brand presence and increase revenues. Our individualized plans are comprised of digital marketing services that will help your business increase revenue and brand equity.

Many businesses out there will take your money, create an ad, and train you to think clicks and impressions are the most critical metrics. Others will ask for insanely high retainers. Our approach is to help increase revenue and achieve business goals. As a Calgary Digital Marketing Agency, we specialize in social media management, search engine optimization and digital advertising.

Your business is our priority. Many businesses can suck you into costly ad campaigns and present your results in a fancy dashboard while not achieving any revenue increases or business goals. We ensure every action and dollar you spend with us is used to earn your business goals.