Pay-per-click advertising is essential for many e-commerce and omnichannel retailers. Google, Facebook, and other advertising platforms made it easy to set up a campaign. Your machine learning can even identify audiences and keywords.
However, the success of PPC often depends on careful planning and preparation, rather than being rushed to run ads.
In addition, PPC advertising is almost always iterative. So, even with planning, a fully optimized campaign can take months.
What is the goal?
It’s too easy to buy PPC ads with just a vague idea of what they’re supposed to accomplish.
At the beginning of each new campaign, define a SMART goal – specific, measurable, achievable, realistic and timely.
Imagine selling subscriptions to premium ice cream. Subscribers receive various “flavors of the month”. One PPC goal might be to grow monthly recurring revenue by $ 25,000 in the next quarter.
Can i afford it?
Next, decide if your destination is affordable.
To generate $ 25,000 in new monthly recurring income, you need to know a few things about the direct customer ice cream subscription business, such as a competitive subscription price and customer acquisition costs.
For example, if a typical subscriber pays $ 25 a month, you need 1,000 new subscribers over three months. And for example, customer acquisition of $ 27 will require $ 27,000 to fund the campaign.
And that doesn’t say anything about your company’s profitability. If the cost of goods is $ 13 per order, a subscriber would have to stay longer than two months to break even.
Monthly Subscription Revenue – Monthly Cost of Goods = Monthly Gross Profit
Customer acquisition costs / monthly gross profit = number of months until break-even
$ 25 – $ 13 = $ 12
$ 27 / $ 12 = 2.25 months
Run these scenarios to make sure your campaign goal is realistic.
Who is the customer?
Having a SMART goal that outlived your customer acquisition costs is not enough.
It is important to understand your target customer. Developing a customer profile or persona can be helpful, especially when it comes to writing ad copy.
Take into account the needs of the customer. For example, in 2019, together with the Kantar Group, an analysis and consulting company, Google identified six needs that drive search behavior:
- Surprise me. The search is fun and entertaining. It’s extensive with many unique iterations.
- Inspire me. Search is a fast-paced adventure to find new things. It’s short with just a few words and minimal use of the back button.
- Impress me. Search is about influence and profit. It is laser focused with certain phrases.
- Educate me. Search is about competence and control. It’s thorough: reviews, reviews, comparisons, etc.
- Assure me. Search is about simplicity, convenience, and confidence. It’s straightforward and tends to involve questions.
- Help me. Search is about connection and practicality. It is to the point and more likely to mention the family or the location.
“Every need state consists of a combination of emotional, social and functional needs. Emotions are the basis of need states. The truth is that decision making is not a rational process, it is mainly driven by people’s feelings. The rational brain determines the reasons for our decisions only after they are made, ”wrote Justin De Graaf, Google’s Head of User Experience Research.
“And these needs have a profound impact on the search. How long the query is. How many times a person presses the back button. How many tabs a person has to open. Which device you are using. The number of search iterations. Whether a person prefers text, image or video results. How many different things you enter in the search bar. “
These needs are likely to affect your PPC search advertising as well.
Once you know your customer, you can develop the keywords and structure for your campaign.