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This is part 1 of how to successfully create a PPC campaign. In order to make easier for novices we mainly concentrate on Google Adwords. This chapter describes all the PPC terms you should know before diving in to latter chapters.

PPC (pay per click) or CPC (cost per click) –is contextual advertising that is targeted either by a prospect searching for keywords within your campaign or visiting pages with a relevant content to your campaign. Advertiser pays when a prospect clicks on the advertisement.

Click through Rate (CTR) -ratio of clicks on an ad to impressions of the ad. Higher CTR rate means that advertising campaign is highly targeted and can lower your CPC costs within ad networks such as AdWords

Conversion-term used to describe an action needed to be performed by a visitor to achieve website’s final goal. Examples of conversion can be: registration, completed sale, information request. Good SEO companies will use the amount of Conversions as a key performance indicator

Conversion Rate –is a percentage of website’s visitors either paid or organic that perform the action defined as a conversion. Most of the tracking systems like Google Analytics and Google AdWords allow you to track your conversion rate, by setting appropriate goals

Conversion Optimization –set of techniques used to increase conversion rate. Techniques can include: creating more targeted ads, creating more targeted content, creation of customized landing pages, usability tweaks and creation of strong call to action

Cost Per Acquistion (CPA) –also known as Cost Per Action. A ration total cost to bring a traffic to the website to the amount of conversions. For example if you spent $100 on AdWords campaign and two people converted from the campaign, your CPA will be $50

Click Fraud – is illegal technique to manipulate CPC by either competitors or publishers to increase their revenue. It is estimated that at least 5% of any CPC campaign is click fraud. A good SEO company will try to monitor these clicks and file for refund

Quality Score-an arbitrary score from 1-10 given by AdWords to determine the relevancy of your advertising campaign. The higher the score is the lower amount an advertiser pays for a click. All of our advertisers have a Quality Score 7-10

Keyword relevancy – Every campaign starts with keyword research and success of the campaign depends on it. It is a rookie mistake to try and stuff couple of thousand somewhat relevant keywords in one AdGroup. In reality successful campaigns have up to 25 highly relevant and well searched keywords in one AdGroup

Ad Relevancy – Once relevant keywords are found and broken up in small groups a highly targeted ad needs to be attached to every group. Again it is a rookie mistake to use same ads for each group. Successful ad will include keywords inside it and will have a strong call to action

Landing Page- Google goes as far as checking your website in order to determine how relevant your ad campaign is. One of the common mistakes is to point advertising campaign to a home page. Targeted landing page for each AdGroup allows an advertiser not only to optimize their conversion rare, but also to maximize their Quality Score.


Part 2. Quality Score Factors

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This is part two of PPC series post. Part 1 talks about PPC terms you should know.
First step in creating a PPC campaign is to perform keyword research. However, before we unveil the tools and techniques you need to learn about “Quality Score”. Quality score is a score assigned by two biggest PPC networks: AdWords (Google) and AdCenter (Bing-Microsoft).  The score is aimed at determining how relevant and thus useful to users your ads are.

The more relevant your ad is, the more likely a user will click on it and PPC network will earn revenues. That is why PPC networks reward advertisers with high Quality Scores by charging them less per click and giving them more preferable ad positions. A simplified formula that Google uses to determine your position is:

Your Maximum Bid X Quality Score

It easy to see, that if you have a higher quality score, your ad will be displayed in more preferable positions and you will pay less per click. It is estimated that AdWords campaign with lower quality scores can be up 600% more costly than campaigns with optimized Quality Score.
Factors Deciding Your Quality Score

We will go over these factors in depth through the course of these PPC series. For this step you should pay attention to “Keyword Relevancy.” The keywords you are going to research in a next step need to be precise and relevant to your target groups.

The key lesson to be taken from this post is when you start researching for keywords – avoid the temptation of including inexpensive, but low relevancy keywords in your research. These keywords might spoil your whole campaign. Also, as you can see the success of your PPC campaign is partly dependent on all of the factors of Quality Score system. That is why during the next lessons of these series you should keep in mind these graph.

If you have any questions in regards to Quality Score you can ask me on Twitter @romanz or by leaving a comment here. Consider also Liking this post (button bellow) and our main Facebook Page we would appreciate it, plus you will have an access to unique Facebook only content.