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4 Tips to Avoid Losing Money on AdWords You Can Implement Now

Lauren Lawson

9 years ago

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Did you know that there are simple yet clever ways that can help you not only save money but generate the revenue your business is seeking with AdWords?

Understanding basic metrics and how they are all connected can prevent that dreaded hole in your pocket.

There are many other factors that influence how much you spend, but by knowing how and which strategies to implement for your business vertical, you already have the key towards saving a pretty penny.

Start saving now, with these four tips that can do wonders for your business in PPC advertising.

1) Analyze Where Your Money Is Best Spent

Understanding the behavior of your industry vertical on certain networks can be quite beneficial for your business and budget. Determining the type of business you are can help you get started pretty quickly. Here are a few examples:

Business Type: E-commerce

Beneficial Network: Search & Shopping

Beneficial Campaigns: Search, Shopping & DSA (Dynamic Search Ads)

So you sell products online.

Not only do you want to show for certain keywords and have customizable Ads, but you also want to display your product images and always have them up-to-date on inventory in the Shopping network. Also, if your products have great titles and descriptions, this would be great content to test out a DSA campaign.

Business Type: Lead Generation

Beneficial Network: Search & Display

Beneficial Campaigns: Search, DSA (Dynamic Search Ads), Display & Remarketing

Your main business goal is to acquire leads and to achieve a closed sale of services. That may not happen on the first try or by a search query related to the keywords you are advertising. Therefore, a combination of Search and Display can be useful especially if you wish to market to those who simply don’t know they need your service until an image Ad shows to remind them.

As an SMB, you might find yourself starting off with a limited budget in which it would be recommendable starting off small to grow big. Pinpoint your best selling products or services, and build off this to start your campaigns.

2) Discover Strategies That Can Lower Your CPC and CPA

Although the following strategies may seem simple, they do take care of the job of lowering your CPC and allowing more wiggle room when it comes to your daily budget. Some strategies include:

Match Type Variation for a Specific Keyword to Lower CPC

For instance, +cellphone +repair  has an avg. CPC of  $3.54. By adding and testing out phrase match or exact match you may end up with a lower CPC for that keyword: [cellphone repair] has an Avg. CPC: $2.25 and “cellphone repair” has an Avg. CPC: $2.16.

Pausing Keywords with High Cost and 0 Conversions

Ask yourself this question: Why would you be throwing your money away on keywords that are not bringing in potential business for you? Considering to pause keywords that have not generated assisted clicks, assisted conversions or view through conversions, and that have not contributed to a specific activity on your website, can help you save and bid on keywords that are really worthwhile.

Create Highly Relevant Ads

Creating highly relevant ads for ad groups is extremely important in order to increase Quality Score and CTR thus decrease CPC. Below, you will find two ads from the same ad group that illustrate the effect that Quality Score and CTR have in the average CPC.

This ad has a Quality Score of 8/10, a CTR of 2.63% and an average CPC of $2.16

Highly Relevant Ads - White Shark Media

   This one has a Quality Score of 6/10, a CTR of 0.98%, and an average CPC of $2.85

Highly Relevant Ads - White Shark Media Blog

Pause Keywords with a Cost/Conversion That Is Higher than Your Profit Margin Permits

For example, for a cellphone repair the avg. cost per service is $30.00. If you make a 30% profit from this, you would end up with $9.00 profit. Therefore, if your CPA (Cost/Conv.) is higher than $9.00 you are losing money.

Here are some other tricks that I once thought would never work, that are worth testing:

  • Partial BMM on High Cost per Click Keywords

+cell phone +repair vs. +cell +phone +repair, try testing to see which has a lower CPC

  • Lowering Bids for Top 1-2 Avg. Positions

You’d be surprised to see that your conversions increase achieving an avg. position below 1. Your CPC will be lower which will allow you to maximizes you more budget, increase traffic and the likelihood of greater conversions.

3) Do You Have a Unique Value Proposition?

A constant review of your Ads’ uniqueness is vital to its performance. I invite you to take a closer look into your business’s unique selling propositions:

  • Promotions, pricing, and discounts: Do you have enough or have them at all?

  • Competitors Ads: Does your Ad pop out from the rest? Can you offer something better? Visit their website and do some research. Beat the crowd while you still can.

Unique Value Proposition - White Shark Media Blog

Another great way to make your Ad copy POP and promote your USPs, is to focus on Ad extensions such as Callouts, Sitelinks, Shopping campaigns, and more. Read up on the following articles to get a complete rundown on Ad Extensions:

4) Tackle Your Money Making Keywords

Stop wasting money on keywords that are just not worth it. It is so easy to pinpoint converting and assisted converting keywords if you have tracking efforts in place. If not, take into account the following metrics for high cost keywords as indicators to pause them as soon as possible, and allocate the remaining budget on great performing keywords that are potentially bringing in the business to your door.

  • Low CTR, below %1.00

  • High CPC, but not converting

  • Low Quality Score <6/10

  • Low Avg. Position. <3.5

Save Time by Putting Simple Strategies in Place

These are 4 great tips that serve as an eye opener that your campaign is not performing at optimal levels. Huge optimizations are often unnecessary, sometimes it is the simple and essential strategies that can save you quite more than you think. Start implementing smart, money making strategies, and you’ll discover the key to online marketing success for your business in the PPC industry.