Pay-Per-Click: Defining ROI

If you want pay-per-click (PPC) advertising to pay off for you, make sure your marketing goals are specific and measurable.

Some companies merely look at the click-thru-rate and correlate a certain level with success.

With B2B and B2C, the sale may not happen right away. That’s why it’s important to track other factors of performance beyond the immediate CTR.

Yes, increased revenue attributed to PPC advertising is a good way to look at ROI. But, while championing revenue, you must be product- or service-specific while establishing reasonable timelines:

• What will it take to win over the prospect after landing at your website?
• Will you need to speak with the potential buyer? Do you have additional information he/she may want?

Keep sales and conversion data in perspective. High sales volume must be viewed in light of profit margins and the long-term value of the customer. High conversion rates may be expected for some products, and a high-ticket item can have a low conversion rate and still be extremely valuable.

Here are some further PPC ROI tips to keep in mind:

1. Be careful about buying the wrong keywords.
You may find a keyword that matches your target market in a broad sense. Maybe you sell soccer apparel, but maybe you consider buying “soccer.” Obviously some people searching for “soccer” may want your jerseys, but you may pay for many clicks that result in no leads or business.

2. Test your ad titles.
It’s all about trying different approaches and measuring their effectiveness. Include keywords in the title if you can.

3. Test ad copy.
Vary your ad copy with different offers and incentives; one will work better than the other.

4. Take advantage of behind-the-scenes rules.
Manage your bids, paying more at certain times of the day than others. Turn off your ads when they won’t help you. Search engines and bid management systems have other options.

5. Test your landing pages.
The best keywords and ads won’t matter much if your landing page is disorganized and the website design looks like an amateur put it together. Test your page headings, picture size and placement, calls-to-action, colors, phone numbers and much more.

And if you want someone to fill out a form, keep it as short as possible