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Many digital marketers think that managing the PPC monthly budget is just an administrative task with little impact on results. But nothing could be further from the truth as it can have a real impact on campaign performance.
We introduced budget based bidding as a feature in ClickSweeper 9 years ago and since then have introduced four additional bidding options; ROI, Analytics, Conversion and Rank. What we have learned by analyzing the results of these various bidding options is that budget based bidding is the most secure and efficient as well as having the greatest utility as the rules in budget based bidding apply to almost every scenario and account.
Why is budget based bidding so effective?
We see two key factors that put budget based bidding on top. First, cost per click is most economical when ad spending is spread evenly over the campaign’s uptime. Second, account performance is optimized when a higher percentage of the ad budget is spent on campaigns with higher search volume and clicks.
If cost per click is most economical when ad spending is spread evenly over campaign uptime, keyword bidding must be optimized based on daily and monthly budget and adjusted as changes are made to the budget (budget management tool). The best performance will be achieved when keyword bidding is updated and optimized to reflect budget changes and spread over maximum daily and monthly campaign uptime.
If account performance is optimized when ad budget is focused on the highest performing campaigns, daily campaign spending goals must be optimized so that they are updated daily based on the remaining monthly budget. The best performance will be achieved when the budget is redistributed from campaigns with lower search and click volume to those with the highest volume.
While the concept of combining budget management with budget based bidding is simple, no PPC bidding tool vendor offers a monthly budget management feature along with budget based bidding, until now.
The power of ClickSweeper’s budget management and budget based bidding
- All budget management activities are automated
- 12 months of budget history automatically saved
- Month to date ad spending tracked and daily spending goal revised to spread the spending evenly
- Campaigns deactivated if monthly budget runs out before the end of month
- Each campaign’s budget based bidding adjusts keyword bid price daily to maximize click count and conversion count with guaranteed minimum visibility
- From keyword level, select keywords and set specific position to achieve maximum visibility
Who can benefit from ClickSweeper’s budget management tool?
- If your account or campaign’s monthly budget isn’t being closely managed
- If your account or campaign’s monthly budget changes frequently
- If the account has many campaigns to manage with monthly spending goal
- If the account prefers automation to manage ad spending and optimize PPC performance
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Not all leads are created equal and not all result in the same sales conversion performance. As a result, any steps taken to improve lead quality will in turn lead to improved conversion rates and ROI. However, the process of improving lead quality can be a very complex and time consuming one.
Lead-to-sales conversion performance depends on many variables such as search ad vendor type, campaign, ad type, ad copy and keywords. For example, the conversion to sales ratio of a lead generated from a keyword search campaign can be vastly different from that of a lead generated from a display ad campaign or a remarketing campaign. It is also likely that a lead resulting from a Google search will have a different probability of converting than a lead generated from a Google partner network or Bing network. What this illustrates is just how critical the tracking, analysis and segmentation of sales performance data by ad channel, campaign, ad type, ad copy and keyword is to search marketing campaign optimization.
This is the ongoing dilemma for many marketers and especially perplexing for many small businesses and the agencies that serve them. You need a constant flow of new leads but how do you improve the conversion rate and ROI without breaking the bank or tying up all of your resources?
We believe intelligent automation of the SEM optimization process is the key and that is exactly where SAAS and Cloud business marketers need to look out for vendors that offer SEM solution. In order for the SEM optimization process to be automated, there are four key challenges or requirements.
First, a centralized backend system to receive and store all leads is required. All leads need to be passed into one backend system whether they come in the form of phone calls, online forms, email, blog or social sites with lead source information. While software and tools exist to make this centralization of leads possible, the cost of existing solutions can be high and out of reach for many businesses.
Second, an analysis of all leads to determine source must be accomplished. Each lead must be analyzed for source by ad channel, campaign, ad group and keywords. Once the source of each lead is identified, further analysis is needed to determine the source or sources that produce the greatest number of high quality leads. While there are a few options in existence that can provide help with this type of analysis, they can be quite expensive depending on the tool and implementation cost.
Third, lead status must be updated routinely so that a current picture of lead status is available. Manual updates of lead status may not be as easy as one might think. It generally requires either a dedicated staff member to update status routinely or a sales staff that is diligent about updating lead status. In our experience most businesses have had limited success with these manual approaches to lead status updates.
Fourth, lead quality data must be passed onto and utilized in the management of search marketing campaigns. Lead quality should serve as a KPI of search marketing campaigns. While there can be customized solutions to share lead quality data with search engine marketing optimization tools, until now these have been custom solutions that are costly to implement.
Now that you know what to look for from the process, you can make an intelligent decision in a search for SEM automation tool. Fortunately, there are more vendors to try to devise solutions.
There’s no denying that Google’s rise to power has been impressive. As someone who has been involved in online marketing for the past 10 years and has viewed the industry from different perspectives, I’ve watched them closely. I’ve seen them from the perspective of search advertiser, marketing agency and search ad application developer. I think it is interesting to look at their performance and how they use their power from these different perspectives.
Google started as a socially responsible company. In their beginning, Google offered organic search results that were unbiased and informative. While organic search has evolved over the years, with many improvements and some drawbacks, it still remains essentially unbiased. As we all know, organic search results are critical to most businesses and with the rise of organic search unethical SEO tactics followed. Google has done a good job at detecting and mitigating these unethical practices.
In the area of paid search ads, Google was a boon to advertisers in the early days offering cost effective advertising with analytics and flexibility to make changes quickly. The not so good, more recently Google’s ad costs have been on the rise and flexibility and customization have decreased while there are more features.
From an agency perspective, Google has provided a significant opportunity for revenue generation as agencies manage Google advertising for their clients. In the beginning Google’s support for agencies was minimal but over the years this has expanded and improved to the point that it is pretty good.
Last but not least is my view of Google as an application tool vendor. In the early days there was a significant opportunity for third party tool vendors as Google’s tool offering was minimal. But, not surprising, as the market for third party tool vendors increased, Google saw this as an opportunity and another revenue stream for them. Google’s tool offering has been a win for consumers so even though it took business away from third party tool vendors, I cannot be too critical of this move.
Then there is Google’s RMF (required minimum functionality) policy. This is where I see the Ugly. Google’s RMF stipulates the requirements that application vendors must meet to gain API access and it has become extremely burdensome for application developers. In the beginning the RMF requirements were manageable but they have increased to the point that they now represent more than 50% of Google’s ad management features. This is placing a heavy burden on both small and large tool vendors. Making matters worse, many requirements are not based on consumer needs. Developers are forced to meet requirements that the end user has no use for.
I think this policy has become tantamount to unfair business practices for the following reasons.
- The requirements are not there to meet customer needs, wants or desires since customers use software tools as an alternative to what Google offers.
- The requirements hurt agencies and marketers as there are fewer alternatives to choose from and the alternatives that are available are more expensive.
- The requirements add significant risk to small business software vendors as they have to allocate their resources to keep up with Google’s demands and have less time to improve their core features that ARE based on customer needs.
I am glad Google has been a socially responsible company in many areas and it is very important for Google to remain as one in the future. To do it, we, the industry insiders need to express our view to companies like Google. Let us know how you would rate Google.