Maximizing ROI in PPC

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ubaidabcd

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What are some things you take into consideration when trying to maximize your ROI in PPC? This is for campaigns that are already currently running and making money, just trying to improve and maximize ROI. What are the important aspects you should pay attention to?

In additional if anybody has any quality links to articles on this I'd appreciate it.


Thanks
 


ROI is a measure of the effectiveness of your investment. Profit is a bottomline measure. If you have limited resources and ignore ROI, you're not too bright. You could have one project doing $10,000 profit, but costing you $400,000 in expenses. That is a very low ROI, (2.5%). Then you could have a project doing $5,000 profit but costing $2,500 in expenses, so your ROI is 200%. The second project is more effective and a better use of your time. The first project is profitting more, but odds are it using the bulk of your resources and is a stopping you from expanding beyond the $10,000 mark because you have no capital left to invest.

That's about it.
 
Do you have conversion tracking at all?

Also, you should always split test ads and landing pages to find the ones with the best CTR and ROI.

Read up on Super Affiliate Mindset if don't already.
 
beejeebers said:
ROI is a measure of the effectiveness of your investment. Profit is a bottomline measure. If you have limited resources and ignore ROI, you're not too bright. You could have one project doing $10,000 profit, but costing you $400,000 in expenses. That is a very low ROI, (2.5%). Then you could have a project doing $5,000 profit but costing $2,500 in expenses, so your ROI is 200%. The second project is more effective and a better use of your time. The first project is profitting more, but odds are it using the bulk of your resources and is a stopping you from expanding beyond the $10,000 mark because you have no capital left to invest.

That's about it.
Click to expand...

I'm well aware between the differences. Your comparison however is pretty ridiculous. Even with limited resources, I would much rather settle for a 50% return, but get for example top placement and thus more traffic and a better CTR, than have 100% but only the fraction of the traffic. Assuming ubaidabcd has more than a couple of bucks to spend, it shouldn't be a problem. Plus, the history of the keywords will only help in the long run.
 
Palmerville said:
View attachment 399

Which project would you rather fund? The higher profit or the higher ROI?
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Oh for gods sake. If you are going to argue a point, try to at least use something that could be a PPC campaign. Or at least use examples that aren't as ridiculous as "OMG 10% ROI vs 999%" or "2.5% vs 100%".

$10,000 & $20,000 Income and a 100% ROI

vs

$20,000 & $35,000 Income and a 75% ROI

would be something that's a LOT closer to what you might see with a PPC campaign. And in that case I would argue for the higher profit, which would most likely go along with a better placement, a better CTR, more volume and a better chance of getting a higher payout eventually.
 
Palmerville said:
View attachment 399

Which project would you rather fund? The higher profit or the higher ROI?
Click to expand...


The higher profit.


Get yourself a decent credit card like Amex and enjoy the points and not worry about having no capital. If you're doing that kind of volume with a network, they'll give you weekly wires and it's not a problem.
 
gopherr said:
Oh for gods sake. If you are going to argue a point, try to at least use something that could be a PPC campaign. Or at least use examples that aren't as ridiculous as "OMG 10% ROI vs 999%" or "2.5% vs 100%".

$10,000 & $20,000 Income and a 100% ROI

vs

$20,000 & $35,000 Income and a 75% ROI

would be something that's a LOT closer to what you might see with a PPC campaign. And in that case I would argue for the higher profit, which would most likely go along with a better placement, a better CTR, more volume and a better chance of getting a higher payout eventually.
Click to expand...

But you're missing the point that if you go with the 100% ROI case in your example, you are saving $10,000 in expenses that would be foregone in case 2. You can then put those $10,000 back into case 1 for 100% ROI. ROI is a measure of success whereas profit is just a measure of margin.
 
first, I ask some questions:

1. Have I maxed out the amount I can spend (not hitting my budget)
2. Have I maxed out my keywords (all that is left is obscure long tail)

At that point, you need to look very aggresivley at your conversions per keyword.

1) Keyword vs. Keyword: what is the difference between your high converters and your low converters? Is it ad position? is it content ? Split testing is powerful here.
2) Keyword vs. rank: how do you convert relative to the rank of your keyword? Is it worth increasing your bid to get a possition 3 vs. 6, etc?
3) keyword vs. time: are you converting stronger on the weekends, the morning hours, etc? If so, do you need to adjust your bid rate vs these time periods?

this is all highly focused analysis, and may require you to invest in outside bid management tools, etc. so that you are not doing it manually. If you are making enough $$$, you may consider bringing in a 3rd party to optimize while you go out and get more offers going. Sometimes campaign optimization and product discovery can be two different skill sets.
 
Ok, let's try this, since logic and diagrams don't seem to work.

Project A; Profit $10,000
Project B; Profit $10,000
Project C; Profit $10,000
Project D; Profit $10,000

You only have TIME to run 2 of the above. Which ones do you pick?

You can't pick without knowing the ROI of each. Let's look again.

Project A; Profit $10,000 200% ROI
Project B; Profit $10,000 100% ROI
Project C; Profit $10,000 50% ROI
Project D; Profit $10,000 25% ROI

Remember we live in the real world here and you only have TIME to run 2 of the above. Now you definitely go with A and B in this case. As stated before it's a measure of effectiveness of your investment. If you only have 2 projects and they're both profitable and you have more then enough time and capital to run and expand them, then don't look at ROI. However when you get into the big boy league you really start to realize that time is money and when choosing which projects are the most effective use of your time, you have to look at ROI.

I know it's hard for small timers to grasp, but one day you'll hit that point where your time and budget is stretched and you have to start putting rules in place, (like a minimum ROI per campaign in order to even bother with it.)
 
I had a nice reply typed up, but closed my browsers, and now I can't be bothered anymore.

Just two things:

- We are talking about existing campaigns, not starting new ones. Big difference.
- Great that you have a minimum ROI in place, I find total volume/profit in a vertical/campaign to be a bit more important, but hey, if you can pay your bills with awesome returns, good for you

Oh and who again shared my income with your? Or are you just talking out of your ass, and trying to make yourself look more credible by implying anyone that disagrees with you must be a poor schmuck? But what do I know, maybe your are indeed banking $15,000 each day.
 
Hi ubaidabcd,

To answer your question:

ubaidabcd said:
What are some things you take into consideration when trying to maximize your ROI in PPC? This is for campaigns that are already currently running and making money, just trying to improve and maximize ROI. What are the important aspects you should pay attention to?
Click to expand...

Having a well developed business plan helps a great deal. I have one for my polling site APopularityContest. When I originally marketed I simply tried just to get people to visit my site. It worked, but not very well, and was expensive. Then as my business plan developed, and values of actions were becoming more defined it was clear who I was trying to market to, and what had the best ROI when marketing. I originally thought, get people to visit, get people to vote, and the traffic will build. People did visit, and people do vote, but that is not what brought in the real traffic, and money. What brought it in was people creating polls, and search engines throwing traffic at them. Each new poll is like money in the bank. Now I market to get new polls created, not voters.
 
I will ignore all the babies fighting and tell you to make sure that you track every click as best as you can- especially the keyword you're bidding on. If you're not tracking keywords, you're throwing away profit. Find the ones that convert and try to make them even better. Do split testing on the ads, put them in their own adgroups, etc.

Also, look at keywords that get a lot of impressions and no clicks. Focus on trying to make the ads stand out more and attract clicks. Don't be stupid and make them unrelated though. Say what you need to say to encourage a conversion, but use words that stand out, take advantage of bolding, etc.

Next, look at your landing pages if you have them. Make it simple enough for the user to move along to the offer page and convert without even thinking.

This shit has all been said a million times, but it's pretty much the formula. Usually, I can at least double my profit by doing just one round of this refining.
 
Thanks to the few people who stayed on topic and answered my questions. It was basically just what I was thinking, the same usual stuff you do to every campaign. I was just checking to see if I was on the same page and if there's anything I'm missing. I did pickup a couple things I didn't know about.

Thanks again
 
To get back to your original question on how to maximize ROI, there are a couple things you can do:

- pause under performing keywords religiously, (this is after your initial test period where you are willing to lose a bit if you have to). If a keyword hits your maximum spend, without achieving your target ROI, then cut it off. Don't think that the next click will turn it around. Pause that keyword and test a new one.

- Every time the two ads you're testing hit 100 clicks a piece, it's time to pause the lower performing one and replace it with a new test one. Never replace both ads, because you'll be back to square one, just replace one of the two at a time. Sometimes the only thing holding back an adgroup is a bad ad dragging down the ctr and increasing the cost per conversion.

- Look at related areas for your keywords besides the obvious ones, this will help increase your ROI.

I would be interested to hear how people who look at profit only manage their campaigns. I'm open to good methods, especially from people doing $15,000 per day.
 
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