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Every good business owner knows that you need several tools in your marketing toolbox to reach more clients. And Pay-Per-Click (PPC) advertising is just that: a power tool for leads and website traffic. So, when do you start using it, how much do you spend on it, and what else should you know about it? That’s what we’re here for… read on to learn more.

Understanding Your Business and Goals

It may seem obvious, but before delving into any marketing campaign, you need to understand your goals: Are you trying to increase the number of site visitors, are you promoting specific products, or are you trying to expand your reach? Identifying these objectives will help determine if PPC marketing is right for your business at this point, and how to use it.

For example, if you’re looking to increase brand awareness, you probably shouldn’t use Google Ads for your PPC. Instead, an awareness campaign through Facebook or Instagram Ads would be more effective for that specific goal. But if your goal is strictly lead generation, it’s smarter to start with Google Ads first, and then incorporate Facebook Ads after your Google Ads are running smoothly.

Target Audience Research

One of the keys to successful PPC advertising is knowing your target audience. Conduct thorough research to identify the demographics, interests, and online behaviors of individuals seeking businesses like yours. You can do this through information you’ve gathered in your business, or tools like Pixels. Is your audience actively searching for information online? Are they likely to engage with ads? Understanding your target audience’s digital habits will help determine if investing in PPC is a viable option for reaching and attracting potential buyers.

For instance, if you know that most of your audience hates computers and is planning for the next Y2K (Y2024 doesn’t have the same ring to it), then they’re unlikely to see your ads. And, if they don’t see your ads, they won’t convert. And if they don’t convert, you don’t make money. And if you don’t make money, we all cry.

Budget Considerations

Determining your PPC budget is a crucial step in planning your advertising campaign. Consider your financial resources and allocate a budget that aligns with your goals. Start with a reasonable amount and gradually increase it as you see positive results. The question you need to be asking to determine your budget is: “How much money do I need to spend to make sure we are hitting our goal?”

If your goal is to get 3 sales per month and you know that 1 out of every 15 leads actually converts to a sale, then you know you need to bring in at least 45 leads per month. So how much money do you need to spend to bring in those 45 leads? That number is going to determine the minimum amount you need for your budget.

If you’re looking at your budget and you don’t think that you have enough to invest, then it may not be the right time for you. Sure, the goal of PPC advertising is to make money, but it might take time for your campaign to build up steam and start generating revenue. Especially if you’re doing it yourself.

On the flip side, if your current PPC campaign is making you money, why keep it the same? You know what they say: “There’s never too much of a good thing.”

Take one of our clients, for example. They initially started with one $1,500 campaign that expanded into 2-3 campaigns for 1 product. We slowly increased budgets until the spend was ~$12,000/month across 4-5 different geo-targeted PPC campaigns within a 10-mile radius around their business. It was highly successful, giving them a remarkable return on ad spend (ROAS). 

But, we didn’t stop there. We increased the ad spend again, until they ran out of opportunity within the 10 mile radius, and then we increased to a 15 mile radius… and the ROAS continued to rise! We stayed on this path until we found the point of diminishing returns, and adjusted the campaigns accordingly. 

Then, we moved on to create additional campaigns for other products with this client, and we saw the same results! Now they’re up to spending $60K/month across several products and making $1.25 million per quarter from those ads. This just shows what is possible by investing strategically in PPC.

Seasonality and Trends

Consider the seasonality for specific products and services. Certain products may have higher demand during certain times of the year, such as bathing suits being popular in the spring and summer. If there is a particular product or time of year when demand is typically higher, invest in PPC during those periods to maximize on increased interest and engagement. 

Also, don’t miss out on trends. A prime example: fashion companies capitalizing on T-Swizzle (or Taylor Swift for you non-Swifties). Paparazzi capture shots of Ms. Swift in public, fans go wild for her outfits, slay queen. 

So what are those companies doing about it? They’re advertising Taylor Swift’s clothing to her fans. And the products are selling out. So, bottom line: take advantage of times when your product or service is in high demand, which is often due to the time of year or a current trend.

Tracking and Analytics 

Implementing proper tracking and analytics tools is essential for measuring the success of your PPC campaigns. Set up conversion tracking to monitor inquiries, phone calls, and other conversions resulting from your ads. Analyze performance metrics such as click-through rates, conversion rates, and return on ad spend (ROAS). These insights will enable you to make data-driven decisions and optimize your campaigns for maximum effectiveness.

If your campaign isn’t giving you a positive ROAS, then it’s time to rework the campaign. If you’ve already tried reworking the campaign with no success, then it might be time to turn off the ad and revisit it at a later date.  

Investing in PPC advertising for your business can be a game-changer, but timing is key. When done strategically, PPC can help you attract more clients, increase brand visibility, and achieve your business’ growth objectives. If you need help with your own PPC efforts, don’t hesitate to reach out to us for a free consultation. It’s what we do for a living, and can take the stress out of it for you!

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