AdWords Campaigns | Are Ads Worth It?

Paying for clicks to your website is a risk. Who knows if it’ll pay off? It can feel like buying a lottery ticket. But it doesn’t have to. Plan for ad spend success by estimating a few key metrics.

Know what kind of ROI you can expect on your Ads Campaigns.

Clients or potential clients of ours considering Ads Campaigns always ask us the same thing: “How much should I spend?”

It’s a good & important question, however it’s most certainly the wrong question. The right question is: “For every dollar or pound I spend on ads, how much will I get back in return?”

If you know the answer to that question, you’re already in a better position than you were. There are calculators available online that will help you work this question out and also Reason 2 Design can go one step further and analyse your competitors should you feel that what they are spending would help you know what kind of budgets to set for your business.

The HubSpot Advertising ROI Calculator.is available freely online and will get you started – this is an easy to use calculator we suggest as a good example but there are many more that are easily accessible.

These simple calculators allow you to explore how different metrics will impact the profit and ROI you can expect from ads. Getting the math right from the offset means that you dont have to guess the outcome – you gain the ability to make an educated projection of your ROI.

Ready to give it a try? Click here to check out the HubSpot Advertising ROI Calculator.

How to Plan for Ads Campaign Spend Success

People are always talking to us about getting burnt by ads. They build an Ads Campaign to rank for what they feel are important search terms in relation to their business, the ad campaign drives clicks, traffic, and leads, but ultimately their ad spend is not relative to their expected ROI (Return on Investment).

In a lot of cases these people ultimately end up learning a really expensive lesson, one that could be easily prevented by following these simple AdWords Marketing Steps

1) Work out the Math.

Ads aren’t right for everyone – this is the first thing you should really think about. Some industries have abnormally high competition with ridiculously high CPCs. Some products or services have too low of an average revenue or sales price for the economics to work.

To determine if ads are worth spending your valuable time on, run the maths that are specific to your business through one of the calculators as advised above. You can then explore how a change in numbers, a lower CPC or higher close rate for example, will impact an individual Ads Campaign. This will give you a better idea of what it will take to create an Ads Campaign that makes you money.

2) Never forget Ads Campaigns – they dont manage themselves.

Try not to look at Ads Campaigns as a shortcut to success online. Ads Campaigns can be a tangible recurring source of profit, but typically that’s not how things start out.

Don’t be surprised if a week after your Ads Campaign starts your ads aren’t generating lots of profit. Data must be examined and you must make improvements to your Ads targeting, creativity, and landing page content.

Improvements in click-through rates and conversion rates are usually incremental and can have a huge impact on profit. Use one of the ads calculators suggested above to explore the impact these changes could have. Watch your Ads Campaigns like a hawk for the first month and try to avoid big mistakes.

3) Don’t place your Ads Campaigns in a lonely place – surround them with voices.

Ads act like a megaphone that simply amplify your other marketing campaigns and site content. The better constructed and well developed your Ads Campaigns are, the better your individual ads will perform.

When you think logically: Which ads do you think perform better? Those promoting your homepage or those promoting a page on your site containing a remarkable piece of content that helps someone?

Erm well you know the answer. The ads promoting remarkable content thats informative and what they searched for in the first place, always remember – CONTENT IS THE REASON THE SEARCH STARTED IN THE FIRST INSTANCE.

Marketing Campaigns that use ads should be treated like any other campaigns. Firstly establish your goals, then create great content, optimize your landing pages so they are focused on the content of the campaign, then figure out how the ads megaphone can help amplify your message to your demographic. Taking this combined approach and only using Ads Campaigns as a strategic part of your overall marketing campaigns will bring the ROI we all strive to achieve.

So how much should you actually spend on ads?

Assuming you’ve got your numbers right and you now know what you can expect in terms of profit and ROI, it’s time to launch an Ads Campaign. To do this you’ll have to make two money related decisions, regardless of where you are advertising:

  • Total campaign budget or duration: How much do you plan to spend in total? How long will the ads run for? Be aware that if you don’t set a limit there will be no maximum or end date.
  • Daily budget: How much do you want to spend a day?

There are two ways I see most people use Ads Campaigns, short-term and long-term.

Short-term Ads Campaigns | Budget = hundred dollars (at least) over a month.

When people use ads for a short-term goals, it’s usually to jump start a marketing campaign or boost content that needs a little push in the right direction. These ad spends are generally smaller and shorter, but can sometimes be large dependant on the nature of the business.

If you have a few hundred dollars to spend, spend it this way. Create a social post that promotes a piece of content and then use your ads to boost the post. Facebook, Twitter, and LinkedIn all have good solutions for this and they can be found easily by searching on their sites individually or on Google. Make sure you use the social network that gives you the best targeting for your demographic and returns the most valuable/profitable leads. Measure this by assessing the quality of the leads generated after the first campaign you run then try the same campaign on the other networks (ideally if you have the budget – run all at the same time so you get more concise data to analyse).

Long-term Ads Campaigns | Budget = thousand dollars (at least) over a quarter.

Ads can be a great solution in a pinch but if you really want to use ads strategically, they must be built into your overall marketing strategy. This means quarterly ad spends of a consistent nature.

Consider how potential customers make purchase decisions and use your ads to influence them. This may mean always relying on search ads or re-targeting the ads to make sure prospected clients find you when they are ready to buy and not have to try remember where they saw your ad. You’re also more likely to accumulate better data taking this approach, which will allow you to become more sophisticated in ad spend optimization.

Whatever budget you choose and whichever approach you take, make sure to ask lots of questions about your own ad spend. Even with the right approach, burning through money fast is very easy to do. Safeguard yourself by knowing what to expect and having clear expectations.

LINK TO CALCULATOR:

http://www.hubspot.com/ads-calculator

 

IF YOU FIND THAT ALL THIS IS GOING OVER YOUR HEAD, WE AT REASON 2 DESIGN ARE ALWAYS HAPPY TO TAKE INBOUND CALLS OR EMAILS AND ASSIST WHEREVER POSSIBLE WHETHER IT BE A LITTLE GREY AREA THAT NEEDS EXPLAINING OR YOU NEED US TO MANAGE YOUR CAMPAIGNS FOR YOU.

FEEL FREE TO CONTACT US AT ANY TIME:

US & CANADA:

Tel: +1 (613) 581 0490        |      Email: scott@reason2design.com

 

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