{"id":84355,"date":"2017-10-12T08:08:47","date_gmt":"2017-10-12T15:08:47","guid":{"rendered":"http:\/\/thegood.com\/?post_type=insights&p=84355"},"modified":"2021-04-19T10:18:45","modified_gmt":"2021-04-19T17:18:45","slug":"multiply-ppc-roi","status":"publish","type":"insights","link":"https:\/\/thegood.com\/insights\/multiply-ppc-roi\/","title":{"rendered":"How to Multiply Your PPC ROI"},"content":{"rendered":"\n

In this article, let\u2019s look at how it can be entirely possible for you to get your PPC ad campaigns back in the black\u2026 relatively fast.<\/p>\n\n\n\n

Before focusing on conversion rate optimization, Easton Sports was getting $4.50 in return for every dollar of digital marketing spend. That\u2019s a decent ROI, but Easton knew more was possible.<\/p>\n\n\n\n

After enlisting The Good to help with conversion rate optimization, Easton\u2019s ROI doubled. They were soon getting $9 back for each dollar invested. That might seem too good to be true, but it\u2019s a typical story.<\/p>\n\n\n\n

Many companies are able to realize even higher returns than that with a structured CRO program. Many others, however, give up on PPC before ever considering the other side of the PPC return on investment equation.<\/p>\n\n\n\n

We\u2019ve seen ecommerce VP\u2019s throw in the towel on PPC after working on their ads to bring cost-per-click down and fine-tune the target audience. With those things done and ads STILL costing more than they\u2019re bringing in, it\u2019s easy to assume that a legitimate PPC ROI isn\u2019t possible for your niche.<\/p>\n\n\n\n

Those who come to that conclusion completely ignore the second side of the equation: the conversion rate.<\/p>\n\n\n\n

There are two ways to make a budget work: reduce expenses or boost income. When net sales revenue pushes above the PPC ROI average, you\u2019re on your way to cultivating a winner.<\/p>\n\n\n\n

On the ad side, the goal is to spend less per click. On the CRO side, the goal is to sell more.<\/p>\n\n\n\n

If you\u2019ve found a way to turn a dollar into fifty cents, you\u2019ll eventually go broke. If you\u2019ve found a way to turn one dollar into two dollars, keep doing it. But don\u2019t stop there. Figure out how to leverage CRO to turn that one dollar into four, or five, or twenty.<\/p>\n\n\nIf you\u2019ve found a way to turn one dollar into two dollars, keep doing it. But don\u2019t stop there. <\/a><\/span>Share on X<\/a><\/span>\n\n\n\n

Never stop improving.<\/p>\n\n\n\n

\"ppc<\/a><\/figure><\/div>\n\n\n\n

Multiply your PPC ROI \u2013 Consider this example<\/h2>\n\n\n\n

Let\u2019s say, for example, that you have a fashion brand. You think your target audience is primarily 18 to 24-year-old female college students, so you naturally invest the lion\u2019s share of your<\/p>\n\n\n\n

to reach that segment.<\/p>\n\n\n\n

After introducing CRO tools and tactics to collect and analyze the data, however, you discover that 35 to 40-something professional women spend significantly more on each purchase with you. Not only that, but the professional group comes back to shop four times more frequently than the student group.<\/p>\n\n\n\n

What should you do?<\/p>\n\n\n\n

CRO says you should optimize around what\u2019s working best. In this case, you should explore how to serve your more mature demographic better.<\/p>\n\n\n\n

You wouldn\u2019t believe how often companies put their efforts into grooming the audience they think they have (or want to have), while ignoring the segment that comprises their actual best customers.<\/p>\n\n\n\n

Don\u2019t ask the shopper to change for you. A quicker path to success is to change your business to the wants and needs of the shopper.<\/p>\n\n\n\n

When you direct your PPC campaigns to the right audience, you\u2019ll see your conversion rate climb. Increased conversions = increased profits = greater ROI.<\/p>\n\n\nncreased conversions = increased profits = greater ROI. <\/a><\/span>Share on X<\/a><\/span>\n\n\n\n

NOTE:<\/strong> There\u2019s a difference between PPC ROI (return on investment) and PPC ROAS (return on ad spend). ROAS is a simple calculation that compares the cost of your ads to the sales generated by them. PPC ROI, however, looks at the \u2018real\u2019 cost of ads by factoring in other associated expenses. In common usage, though, the terms tend to be undifferentiated. At The Good, first we ensure a positive ROAS, then dig deeper to consider true ROI.<\/p>\n\n\n\n

You can\u2019t catch shark in a trout stream<\/h2>\n\n\n\n

Once you\u2019ve firmly identified your most profitable audience segment, you can increase sales to that group by giving them more of what they want\u2026 and presented in the way they want it.<\/p>\n\n\n\n

When you\u2019re planning a fishing trip, you choose the best bait, and you head to where the fish you\u2019re looking for are sure to be gathered. You present your \u2018offer\u2019 in the right place, at the right time, and in an attractive (to the fish) package.<\/p>\n\n\n\n

You don\u2019t have to complicate data-based marketing and conversion rate optimization much more than that. Determine your market niche, present exceptional offers at a price both of you can afford, and you\u2019re in business.<\/p>\n\n\n\n

Here\u2019s a typical sequence we use to hone in on the preferences of the chosen audience:<\/p>\n\n\n\n