Pay Per Click Advertising Campaigns.

50% of people arriving at a retailers site from paid ads are more likely to buy than those who came from an organic link.

When used correctly, Pay-Per-Click or PPC advertising is an incredibly powerful marketing tool. Through using the machine learning the Ad platforms have gained, you’re literally placing your product, brand or service in front of people that are already searching for it, or something like it.

Being where your customers are when they’re in the buying mood is the special sauce when thinking about ‘creating’ sales and whirlwinds. Each Ad platform has its purpose and feel. The customers generated by different Ad platforms are unique as well. A proper understanding of your customer personas is vital.

Search Engine Ads Vs. Social Ads

The biggest difference between the two Ad Platforms is simply where you’re engaging your customer in their buying journey. Are they in the Awareness Stage – where they know they need a solution to a problem they’re facing? Are they in the Consideration Stage – where they know there’s a solution out there for them, they are now researching them? Or, are they in the final stage, the Decision Stage – where they’ve found what they’re looking for and are now looking for the best place to purchase?

Both Google and Social Ad platforms are effective at all points of the buyers’ journey, however, there are clear differences in the Ad campaigns that must be noted.

  • Google has many different types of Ads that can be run. They’re not all just search Ads. Things like shopping Ads, video Ads for YouTube and Network Ads that run across the entire internet, not just on Google’s result page.
  • Facebook and other social networks have great power in profiling the users that click and interact with your Ads and posts. This gives you power to create what’s called Lookalike audiences. An extended group of people who, online, look like the people that already interact and deal with your business, product or brand.

What matters; there’s a lot of statistics here…

Before diving into PPC and other paid online marketing activities, it’s important that you know what the metrics mean. Going into this blindly could cost you a lot of money you’re not getting back, or worse, fail miserably and hurt your business, product, or brand reputation.

Cost Per Click Vs. Cost Per Result

This one seems fairly simple, but hard to accurately measure. The Cost Per Click (CPC) basically tells you how good your Ad is. How effective the copy (text for the Ad) and creative (picture for the Ad) are. This is how much it cost before someone clicked on your Ad.

The Cost Per Result (CPR) is a little more complicated, yet more accurate in determining how successful the Ad campaign was as a whole. If you’ve got Google Analytics and Facebook Pixel tracking set up correctly on your site, you can set a Result. Results can either be, eCommerce purchases, bookings for your restaurant, quote enquiries, or sign-ups for a business trial. The CPR tells you how much it cost for you to get the Result the campaign was after.

Impressions Vs. Reach

After talking to many of our clients, this is where we see a lot of business owners being lead down the garden path and being bamboozled with BS. These numbers, whilst important, aren’t the key to an Ad campaign. They should never be looked at as such – unless of course, you’re running an awareness campaign for your business, product or service – in which case, they’re the only metric that matters.

Reach is simply the number of profiles the Ad has been shown to. Impressions are how many times an Ad has been shown. Impressions will always be higher than reach. For example, you see an Ad for a Koala mattress. In their campaign results, Reach will be +1 – each time you see that Ad, their Impressions become +1. You may be shown the Ad 3-4 times during its run, meaning their Impressions would be 2-3 times the Reach.

Return on Ad Spend (RoAS)

This metric is potentially the most important number. This number is the calculated success of the campaign.

It’s calculated by the Results, or value of Results, divided by the Ad Spend (total cost of the campaign).

For example, your product is an Office Chair selling for $175. You spent $3,000 on a campaign for a month. The campaign saw the Result as the sale of 54 Office Chairs. The RoAS for this campaign would be 3 (3.15, but rounded to the nearest .5)

Another way to look at RoAS is, you spent $1 and got $3 back, more than doubling your money. In anyone’s book – that’s a successful Ad Campaign.

Good Numbers and Thresholds

Depending on your business, product, or brand as well as the type of campaign you’re running, it’s important to look at your metrics whilst the Campaign is running to ensure there are no runaway elements.

There are averages that you should be keeping in mind to make sure your campaign is running efficiently. Cost per Click, the amount should be telling you how effective your Ads are. This cost will depend on the industry you’re in, and what type of Ad you’re running, but you want to keep an eye on this.

CPM, or the Cost per 1,000 Impressions is another metric that you’ll want to keep an eye on. This is, you guessed it, how much it cost to have your ad shown 1,000 times. Again, this is dependent on your industry and the ad type, but you’ll want this to be under $4.