Posted by Andrella | October 10, 2020
What is PPC Management and How Can it Maximize Your Profit

Stepping into the world of pay per click is a must if you are looking for a quick return on investments (ROI). There’s much to understand before you can even think about getting a return on your investment.

This is where PPC management comes in. Pay-per-click management or PPC management, in short, refers to the strategies, tasks, and processes involved in supporting and managing such PPV-based ad campaigns.

PPC Management is all about managing and overseeing an organization’s money being spent on PPC ad marketing.

It is the management’s decision to form a strategy on how much to spend on a PPC-based ad system while minimizing overall expenditure and maximizing the revenue generated from said ad.

Sometimes the organizations hire a dedicated ad specialist company to let them deal with all the necessary things that will be needed to manage PPC by themselves on their behalf.

PPC management is a form of art where perfection may not be possible, but it is very well still an important objective.

Things that a PPC Specialist Will Do for Your Organisation?

An effective PPC management is usually capable of doing the following tasks for your organization:

1) Search Term Monitoring:

Most PPC specialists monitor search term reports through various sources to recognize and understand which keywords/queries are among the list of most used keywords.

They will then use these reports to focus their ads on the most common search terms, and by checking up on the overall ROI, they can then use it as a guideline to figure out the ROI by subtracting the amount paid from the scope of overall ad revenue.

2) Competitive Analysis:

Keeping close contacts with your client’s competitors is a fine idea. The tactics and strategies utilized by your client’s competitors may seem time-consuming but can churn out some fine ideas.

For example, your client’s competitors may overlook some queries which you may very well work for you (competitive gap).

3) Negative Match:

Optimizing your client’s ad expenditure is your primary objective. You can do that easily by filtering out users who happen to fixate on a special category that makes them highly unlikely to convert.

For example, a high-end fashion designer organization may limit their high-valued ads to users who belong to the top 10% of their overall earnings.

Businesses with a physical location such as a restaurant may prefer to limit ads within close geographic proximity to the restaurant.

4) Keyword Monitoring:

Discovering specific targetable keywords and search terms is key for a company that highly relies on an ad generated revenue.

5) Multi-Channel Strategy:

Google AdWords, Bing Ads, affiliate networks, and various other paid social media ad platforms should be part of every organization’s multi-channel for a multi-channel PPC marketing.

6) A/B Split Mode Testing:

Nowadays, various companies are adopting is split A/B ad testing method. Split testing is simply one of the most effective modes when it comes to optimizing the PPC return of investments.

Whether it is graphical art, text,or other display variables, everything can be used interchangeably to find which mode of ad works best for a particular crowd.

How to Maximize Your PPC Ad’s profitability?

If you are reading this, then obviously means you’re not very happy with your ROI, and you are looking for ways to change that.

Well, you are definitely in the right place, and the most efficient way to increase your client’s ROI is by increasing your bids or your bid adjustments.

This allows you to monitor and increase the impact of your ad revenue without spending more cash reserve.

1) Tweaking bids the right way:

One strategy would be to change your recurring bids in order to look for changes in your incoming traffic and choose a sweet spot between spending and the current ROI.

Once that balance is achieved, you will finally see an increase in your profits.If you subtract all costs (product cost, staff cost, shipping cost,admin cost, etc.) from the price you take from selling, then you are left with the raw profits numbers generated from each product sale.

Most of the clients won’t use anything above 30-50% of this raw profit to pay for the product’s advertisement.

This allows advertisers to figure out a return of investments target return on every ad spent (ROAS) for various products by dividing the revenue generated by the cost of advertising of each sale.

2) Modify bid adjustments to increase profits:

Ecommerce website users can be a tough crowd sometimes. Every one of the converts differently all throughout the day.

While some demographics may choose to increase the overall conversion rates, others may totally drag it down. Different users react differently, and it all depends on the type of device they have in their hands.

Maximizing overall PPC profitability in a”Less is More” kind of way

Sometimes, simply adjusting your bids may not be enough for your business, and in those situations, you may want to consider decreasing your sales.

I know it sounds counterintuitive, but by making each sale significantly more profitable, you will need fewer overall sales to boost your profits.

While it does sound obvious and alarmingly risky, but increasing the product prices, you can actually lead to higher profitability if it’s done correctly.

An eCommerce of a previous client of ours was complaining about how difficult it was to keep up with the demand for their main product line, while the budget line-ups weren’t selling that well.

They were very busy manufacturing the product (luxury line-up) and had to stop selling certain products due to the luxury line-up’s higher popularity.

Our guide helped them raise prices of the budget line-ups by 70%,a huge improvement to their bottom line overall.

Wrapping Up

In the end, while most businesses are concerned with different strategies, you can take this time to follow all the guidelines carefully to get the best possible results. The more you communicate and make good decisions, the better are your chances at a sustainable ROI profit margin.


Author: Andrella



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