3 Signs Your PPC Account is in Trouble – PPC Tuesday



Today, I’m going to go over a few signs that your PPC account may be in trouble. Here at Exclusive Concepts we’ve audited hundreds of accounts that are managed by business owners, consultants, and other agencies. Through the years we’ve come to see several indicators as immediate red flags in a PPC account. Today I’m going to share the top three with you, so you can check your own PPC account and make sure that if these indicators exist, you can correct them before they damage your business.

If you’ve visited the PPC Tuesday blog in the past, you may already know how much importance we place on revenue tracking here at Exclusive Concepts. We find that the Total Conversion Value is the single most important metric that an Ecommerce business can measure. If you are not measuring your total conversion value in your PPC account, none of the other metrics you are looking at can give you any real and actionable information.

For example, in the data shown above, the business owner can see that the first campaign has spent $122.85, had three conversions, and a $40.95 cost per conversion. Without revenue data, it is impossible to know whether this represents a healthy campaign, or a campaign that is unprofitable. If, for example, this campaign had generated $1,800, then we would know that the spend was generating a large amount of income, and based on the average order value ($600, which would be $1,800 divided by 3 conversions), the cost per conversion is acceptable. On the other hand, if the campaign had made only $300 in total conversion value, your metrics would mean sometime entirely different. Your spend would be high, the average order value would be $100, and the cost per conversion would be almost half of the total revenue generated by the conversion. This would represent a campaign that is not performing well.

The only way to know the difference is to track your AdWords revenue. If you are not tracking your AdWords revenue, we suggest that you enable that tracking as soon as possible. Reach out to a professional to help if you need assistance, but don’t let this crucial data slip away.

Another very common mistake we see is setting your budget exactly the same across all campaigns. Does your budget look like the one in the example above? If so, your account may be in trouble.

Your PPC Campaigns should allocate your budget in a way that makes the most of what you are willing to spend, and provides the best chance to maximize your profits. Any PPC account that does not have budgets that have been analyzed and set strategically for each campaign is not going to be positioned to perform at its best.

We recommend that you allow more budget to the campaigns that are the most profitable. We also suggest that you allow more budget in areas where you have higher margins. Higher margins equal higher profits, so you want to give yourself the best chance to get these sales.

Also, be aware of when your campaigns are labeled by Google as “limited by budget.” This means that there are impressions that you are losing because your budget is not high enough to allow your ads to show for every search. This could mean that you need to increase your budget in these areas, but not always. If the campaign in question is not driving profits, increasing the budget may not help. Make these decisions based on strategy and data.

Finally, make sure that you budget your max CPC for ad groups, and even individual keywords appropriately. A keyword that drives great sales within an ad group may warrant a higher bid than others. Additionally, sometimes long tailed keywords that are likely to indicate a motivated buyer should have increased bids as well. Look at all parts of your PPC account when making budget decisions.

Finally, a big problem we see in many accounts is the lack of care taken with the campaign settings. Campaign settings can help your campaign to perform well, or leave it exposed to a lot of inefficient spend. The settings tab should be managed specifically for each campaign. Make sure that you are targeting the geographic areas, languages, networks and devices that will best work in each campaign by setting them in the settings tab. You can specify that your ads only be shown on certain days or at certain times. You can also set how you would like your ads to rotate. Additionally, you’re able to set which devices (computers or mobile) and in which networks (search or display) that you would like your ads to show. Wise choices in the settings tab can make a huge difference in the profitability of your campaigns.