Updated on November 21st, 2022 at 06:46 am
Holidays are the days when the business leads slower and things slow down a bit for some of the digital marketers, particularly the B2B companies. And this can be the best opportunity for cleansing the Pay per click account thoroughly and you will definitely get better results for the investment you have made on your business. So you must focus on how to increase Google Ads ROI.
The most important is landing page optimization and there are many profitable ways for making your PPC campaign get you a good deal of income.
Google Ads plays a vital role in the success of businesses and every company must optimize the Ads campaign as much as possible. This might seem easy while saying but not in terms of actually executing the process. Running such campaigns can be a bit time-consuming and expensive method.
You can achieve despite having a limited budget and a limited number of resources by focusing only on the correct metrics instead of considering all of them. By this, you can make the right tweaks for the optimization of Ads campaigns.
However, the most substantial method for increasing the Google Ads ROI (returns on investment) of your campaign is through increasing the average quality score for your keywords. The success level of Ads is greatly dependent on the fact whether you have acquired all the required ingredients for creating a bigger response for your business.
ROI in Google Ads:-
ROI aka Return on Investment is one of the key performance indicators used by business owners for determining profits. Google Ads ROI is a major role player in terms of determining profitability of your Google Ads campaigns.
ROI is the ratio of your costs and net profits.
ROI is the most vital measurement for marketers as it determines the exact effect of your advertising efforts on your business.
The formula for calculating the ROI is:
ROI= revenue -total cost/total cost *100
For ROI calculation, you need to first measure conversions and your total cost.
What are conversions?
Conversions are actions taken by the potential customers desired by you. These actions can be sales, lead generation, web page visits, sign ups, eBook downloads, fill ups, etc.
After you have measured conversions coming to your website, you can then start calculating your Google Ads ROI. You must note that you conversion value should be greater than the amount spent by you on ads to get the conversion.
For ROI calculation, you have to subtract the overall cost of goods sold from the revenue. Divide that by overall cost, i.e. cost of goods sold.
For example, your spend is $50 for production cost and your selling price is $100. You have successfully sold 5 quantity of your product, all thanks to Google Ads!
So your total sales become $500 and your Google Ads cost is $150. Hence your ROI would be
($500 – ($250+$150))/ ($250+$150) = %25
To measure your ROI, first you need to monitor your conversions. Google Ads ROI is one of the crucial factors for advertisers to know their ad performance and how much they are contributing to the success of their business.
How to Maximize Your Google Ads ROI
Many of you think that Google Ads is not much cost effective and is very much expensive. However, there are thousands of businesses that are spending millions of dollars on Google Ads each month. If it fail to do so, do you think people would still use this platform? We don’t think so!
You should know how to create ad campaigns in the right way rather than choosing something else and waiting for it to work and get your budget wasted. You need to have a deeper look and put more efforts in order to achieve a greater ROI, irrespective of your ad budget.
Ways to skyrocket your Google Ads ROI:-
Understand your goals
You first need to know what you want to achieve from your advertising campaigns. When you know your goals well, you will be able to focus more on your marketing and therefore it would turn out more effective. If you are willing your customers to sign up your newsletter, then you need to design advertising campaigns accordingly and draft messages aligning to that specific goal. Again, if your goal is to increase your revenues, then you need to create your marketing agendas accordingly and include a specific CTA (call to action) button for buying options for your potential customers. You can recover abandoned carts by your purchasing customers. Don’t try to be all over and do all things at once. Try to establish at first what is the most important for your business and put your focus on the more crucial aspects on priority basis.
Always Measure & Improve
You can know if your ad strategies are working through measuring your marketing efforts. Data is your new Bff that will be a major factor in improving your business ROI. You can use free analytics tools as much as you need, for social media or those covering all channels. You need to monitor the performance of each platform you are using along with the performance of individual ad campaigns used on those channels as well. in this way, you can make adjustments as required and optimize every dollar spent and get maximum ROI.
Understand Your Quality Score
Quality score is vital for the cost effectiveness of your ad campaigns. You need to pay more for each click if you fail to provide high quality experience. Your quality depends on some factors- click through rate (CTR), keyword relevance, landing page performance and ad relevancy. The best quality score is 10/10 and the worst is 1/10. The higher the quality score, the less you need to pay for your ad clicks and have greater ROI.
You should know the keywords you should select and also check the relevance of the landing page of your website compared to the ads. You should also check the quality score for figuring out the answers and se the metrics for estimation of the ad quality.
Many things can improve your quality score in one way or the other. But it is important for you to understand. Your quality score might make or break the cost effectiveness of your PPC advertising. In case your website provides a poor quality experience, Google is much interested to deal with you. By making you pay more on per click basis, they try to get you do one or the other thing. Either you should stop running ads for they don’t really make a great deal of financial sense to you. You may also fix the wrongs along with the user experiences.
Google determines your quality score:-
The quality score can go up or down and Google makes note of each action.
Quality score depends on the following factors:
- Possible Click through rate: If your ads are shown on the keywords you have requested but very few people click on the ads, it seems that the ads are irrelevant.
- Relevancy of a keyword to its ad group
- Performance of the landing pages: Analytics are used for Google for determination of people’s responses to the page. Their involvement does not stop once the user clicks on your ads. Your landing page is the ultimate page the ad clicks are directing the users to. But if the ads direct to the home page of your website, then you definitely need some suggestions.
- Ad text relevance to the searchers: It is visible that the ads lose their relevance if people do not click on the ads or leave the page of your website after clicking on the ads for they thought it was something else they have been interested for.
One must consider each of these factors individually to bring in a positive outcome. You should test your Ads campaign structure while building them for ad relevance. You should focus to improve the quality of landing page experience for your audience. If the status is below average, you should optimize the landing page and add a few A/B tests, wherever necessary. Expected click-through rate (CTR) determines the likeliness of your ads get clicked. You may change your ad texts if the status is shown to be below average. Also, the use of magnetic terms such as “free” or “cheap” can drive in a lot of conversions an act as a substitute for improved CTR.
Curate your negative keyword lists
First, do you know what negative keywords in Google Ads are?
Negative keywords are search terms or phrases you can use in order to filter out irrelevant traffic by adding them to your campaign. When you include negative keywords, Google will stop targeting your ads when people search those terms and this will ensure your ads triggered for potential audience only.
By addition of negative keywords, you can avoid wasted ad spends and irrelevant clicks thereby improving your click through rates and greater ROI. You must add negative keywords for potential searches.
Go to “see search terms report” and there you can add a list of negative keywords
Add negative keywords to your list so that your ads show for more relevant searches. You can find these in the “See Search Terms” report.
Single Keyword Ad Group
Inclusion of SKAGs is all about creation of an ad group and adding a single keyword, as the name ‘single keyword ad group’ suggests. SKAGs have higher relevancy to your products or services.
Some of the benefits are:
- Boosts click through rates
- Attract higher relevancy clicks
- Greater chances of conversion with more potential clicks and traffic
And all of these sum up to greater ROI.
The most important aspect of the SKAG strategy is to find high value keywords and high performance of your campaigns as desired by marketers.
Single keyword ad group acts as the anchor of your campaign, it will either swim or sink!
Conduct Landing page optimization
In case you are sending mobile traffic to a poor mobile experience, you are just wasting the cost of that click. This is not a way of maximizing your Google Ads ROI. 74% of the mobile users tend to abandon the website that is not mobile friendly. This can result to a loss and you may lose almost half of the total click through traffic. You need to pay for those clicks even if the user leaves your website immediately after clicking on it.
In case the website is slow and it seems hard to navigate for the users, it lands you in a mess and you are clearly wasting all the clicks and the costs on those clicks. On top of that, you don’t have any opportunity for getting conversions even after paying for the clicks knowing they should have provided you with conversions. A poor website experience can earn you lower quality scores on Google Ads. The lower your quality score, the more charges you pay for each click (more PPC rate) and this can cut your returns faster than anything else.
The main focus should be on the optimization of your website. The three primary actions are as follows:
- Check your website speed: You must test the speed of your website by visiting the Google Page Speed Test. You will get useful recommendations from it for the improvement of your website speed. Most of these steps are easy to apply if you have a basic knowledge and control over your website. For the others, you may turn to the webmaster or any other professional if you have some knowledge about web designing. If your website doesn’t have a terribly slow speed, you can do anything you like. Even the little changes and easy alterations like optimization of images or cancellation of unnecessary widgets that can speed up your website.
- Set easy navigation: You need to revisit your menu and buttons and check whether it is easy for the users to know where they should go. You shouldn’t create a choice paralysis for your audience by having too many of options. Try to minimize your menu.
- Testing your website on different devices: The texts should not be too big for they cannot be read then. Your users have to then scroll back and forth to view the entire page or any image. This can lead to a haphazard lookout for the users so you should check the look of your website: how it is appearing in front of the visitors. And keep in mind, almost half of the total visitors view your website on a mobile device. Fix poorly functioning elements or bad formatting, if any for maximizing your Google Ads ROI. Google offers you a mobile-friendly test as a helping hand.
Google Ads Extensions
Google Ad extensions can boost your Google Ads ROI. Enable your extensions and some additional features will be displayed with your ads and make it more appealing and approaching to your audience.
The Google ads extensions options include:
- Location extensions: display your address to your customers
- Callouts: these extensions display pop-ups and notifications regarding new offers and discounts you give to your customers
- Call extensions: display a live call button to your ads
- Site link extensions: a link is added to your landing page
- Reviews: customer reviews displayed as proofs.
Dynamic keyword insertion for headlines:
Dynamic keyword insertion (DKI) matches the audience search queries with the ad headlines. DKI is one of the controversial topics among the managers of Google accounts. This can bring in the worst leads but it really can bring you a sufficient number of leads in the overall scenario, particularly in the cases where the keyword sets are tightly grouped and hence are a bit hard to assemble. The key trick lies in figuring out the ways for disguising the methods of DKI that work extremely well for your business. When it actually works, DKI tricks the web searchers by making them consider the ads as normal and great in relevance.
Targeting your consumers by income level
You can win half the battle for PPC through understanding as to who can afford your products and services and then you can target them in a proper way. You should learn to make adjustments for targeting people exclusively as well as increase your campaign ROI.
The process of Income filtering is done in Google Ads
When you target your B2B clients via pay per click, your customers can only be guessed depending on the type of searches they type into Google. But in B2C it is somewhat simple and is required in most of the cases for getting a healthy and big return from your campaign investments.
There are two ways for segmentation: one by the manual and one by the automatic process; one by the income level and also by the traffic you purchased via Google Ads ad interface.
- Manual way: While you are running a local business, it is recommended that you go through all the individual towns and neighborhoods to make a list of all places of your area that are likely to bring you profitable clients by type as well as category. Also you can manually select each single area by using Google’s location settings. Ensure that your location targeting settings are set properly for preventing chances of leakage.
- Automatic way: You may break out your targeted audience by the income brackets via the campaigns’ settings menu- location groups.
Most of the products and services can be preferred for the income classes and these are more profitable than the others. You will not be able to automatically eliminate any of the income class targets. Tests, break outs and reviewing of conversion numbers are essential for each income bracket individually for taking right decisions regarding targeting the right people or comparing in terms of bid adjustments.
Remarketing campaigns which combine the audience groups together from different types of traffic sources can be cleaned up very significantly through filtration. The unprofitable income brackets should be eliminated. Those that are not worthy of the clicks should not be kept in consideration.
Income brackets filtration brings in profit:-
Spending some time for figuring out who are the purchasers on your website has a tremendous effect to increase your Google Ads ROI prominently. If the sales person spends lesser time in providing quotes, either on the telephone or in person, this can reduce the strain on the salesmen.
When the salespeople spend lesser time for chasing poor leads, it allows you to focus more on the sales department and divert all your attention to the budget and more affluence of the salesperson. All these will result to provide you with a high closure rate for your leads.
Gone are the days when the business owners solely depended on their products or services and pricing and win over the competitions. Now, businesses must be agile enough, most importantly in their customer experience approaches. Nowadays, several options are available to people and they choose brands that offer the best customer experience. The online advertising sphere has emerged a lot with a rapid growing pace. Most of the marketers use Google Ads for promoting their business. And to get a clear idea of your campaign performance, tracking of Google Ads ROI is the wisest way to go to give you valuable insights on your returns. More will be the ROI, the more profits you bring. Hence improving the Google Ads ROI must be one of the major goals for marketers for their Ads campaign.