Pay per click advertising is a highly effective form of customer acquisition but it can be expensive depending on which keywords your business is targeting. A recent study into Google keywords by WordStream has revealed the most expensive terms on Google AdWords and with some of them costing as much as $50 per click, they are likely to be out of the reach of most small business advertising budgets.
If you do decide to compete for these terms, you will want to maximise your PPC strategy to ensure you make the most of them and increase your conversion rates.
It is estimated that Google generates 90% of its revenue from its PPC platform and it protects its algorithms very carefully. The most expensive keywords are based around the financial and legal industries and include insurance, loans, mortgage, attorney and credit. The lifetime customer value of these industries is notoriously high so they can afford to pay a substantial amount for customer acquisition.
Unfortunately for SMEs trying to compete in these industries, the cost for PPC advertising can seem prohibitive but there are a few ways you can make the most of Google AdWords and get good results without having to break the bank.
Here are a few suggestions for organisations in the financial and legal industries, and anyone else who wants to keep their PPC advertising costs low while getting the best possible ROI.
Make use of negative keywords
This tool is a handy way to weed out those irrelevant phrases you might be matched against so you can be sure your ads are only displaying for relevant searches. By using negative keywords you can exclude keywords and phrases that aren’t likely to bring you any conversions and ensure your ads are only shown to the people you are actually targeting.
Improve your quality score
Your cost per click (CPC) is calculated on a number of different factors and your quality score is one of them. A high quality score can help you reduce your costs and you can improve it by working with small, targeted keyword lists, crafting compelling ad and landing page content and maximising your conversion rate.
Optimise your landing pages
If you’re paying for people to get through to your landing page, you want to make sure you’re making the most of it. Landing page optimisation should be an ongoing task, and it’s a good idea to test out different text, layout and offers on a regular basis so you can see what works for your target audience.
Be very specific with your keywords
The more specific your keywords are the more likely they are going to appeal to your exact target audience. Choose 3-5 word phrases that match what you are promoting rather than more general words and phrases so you can be sure you are only paying for keywords that are specific to your business instead of irrelevant ones.
Although it can be costly, Google AdWords is still one of the best ways to find new customers and increase your business visibility and if you are able to create very specific campaigns around relevant keywords, optimise your landing pages to increase conversions and improve your quality score you have a good chance of success while keeping your costs as low as possible.
About the Author:
Jo Macdermott is the Chief Marketing Consultant at Next Marketing in Melbourne. She has 15 years of marketing experience, is a Certified Practising Marketer and is a sought after marketing media commentator. Jo specialises in working with small and medium businesses. Follow her on Twitter here.