4 Biggest Reasons Explaining Why PPC Advertising Fails (And How to Avoid Them)

PPC Advertising

Without any seconds, we all are already aware of the fact that Pay-per-Click (PPC) Advertising is indeed a highly effective form of Digital Marketing with proven results. However, at times, this same highly effective form of digital marketing can prove to be frustrating in growing your business. Most of the business firms and organizations usually have a hard time unlocking the immense potential of PPC as they end up making a few mistakes. The sad part is that these mistakes are not only easily preventable but also fixable. The question that then strikes our mind is, why do PPC campaigns fail miserably at times? In this blog post, we will shed light on the biggest PPC mistakes that generally cost companies thousands every month in wasted ad spend and lost profit along with the best ways to avoid making such mistakes.

#Mistake1 – Obsessing Too Much Over Cost-per-Lead (CPL)

For quite a while now, the best PPC practice has slowly and gradually shifted from optimizing for clicks to optimizing for conversions. While this step is undoubtedly in the right direction; however, it is essential to realize the fact that Cost-per-Lead (CPL) is an indicator of PPC success and not a measure. The issue here is that vanity metrics such as CPL can never guarantee profitability. There are indeed hundreds of PPC campaigns with brilliant CPL, which are still not profitable. It is a matter of fact that yes – CPL can prove to be an exceedingly beneficial indicator; however, if the campaign has no fruitful outcomes, then it isn’t worth running.

The Fix

Instead of giving a lot of importance to indicators like CPL, as a business owner, you should focus on profitability. For doing the same, you require bringing the data of your PPC campaign to your bottom line. You should also know the keywords that drive the lowest cost-per-sale, the search terms that generate the highest revenue, and the content that leads to more ROI. The best and most efficient way of doing the same is by using a CRM like Marketo, Salesforce, Infusionsoft, to name a few. With this, you shall be able to adjust the bids, budget, and keywords, and, in turn, bring the things under control.

#Mistake2 – Keyword Overflow

As per various reports and surveys conducted, an average PPC account produces all of its sales from only 12% of its target keywords. There are a lot of companies across the globe that already know which keywords shall work well for their businesses.  However, the issue here is that they also end up bidding on a bunch of keywords to gain more profits. All in all, it is not a bad idea, but it rarely works.

The Fix

Fixing this issue is quite convenient. First and foremost, if you are using broad match (the default match type), then you need to knock it off. The next step involves you to figure out your budget-sucking search terms and keywords. By doing this, you can begin giving up on your poor-performance keywords, and, in turn, pay due attention to the keywords that are capable of driving real value for your traffic. It may result in a drop in the overall traffic; however, as the wrong traffic never converts, you can expect a significantly higher conversion rate in your Marketing Strategy.

#Mistake3 – Bidding Way Too Low

Quite often, we come across many digital marketing experts saying that the higher we bid, the more our clicks will cost. Without any doubt, it is right; however, there’s another critical factor that needs due importance, which is the fact that the Click-Through-Rate (CTR) and ad rank go together. If you increase your bids slowly, you will end up spending more on wrong keywords, and consequently, on poor ads. Ultimately, you will lose potential conversions to your poor-performers. Therefore, you need to make a point of the fact that although increasing bids slowly feels like a terrific way of saving money, it will make you lose a lot more money in the long run.

The Fix

Instead of starting low and gradually working your way up, it is better to start at a pretty high level, acquire the data that you need, and then dial back. At the same time, it is imperative to keep in mind that this strategy works if you have a got a compelling and consistent set up for your PPC advertising campaigns. At the stage of testing, the initial objective should revolve around establishing the viability and not profitability. After proven results, you can effectively cut back your bidding strategy and pay attention to profitability.

#Mistake4 – Forgettable Ad Content

Have you ever noticed how all the PPC ads corresponding to a specific search appear like variations on a particular theme? It is right that they all are competing for similar search intent; however, it gets increasingly tough to get noticed in the scenario where your ad looks and sounds like everyone else. Also, there’s nothing wrong with learning from your competitors, but your ads should always be distinguishable from them in all aspects. The thing is, sitting at the top of the page won’t offer you any good as well if you don’t stand out in some way or the other.

The Fix

For creating standout ad content, all you require to do is focus on the pain point your offerings solve for your potential customers. Always remember that customers all around the world look for companies that are capable of understanding their problems well. So, start by putting the pain point directly in the ad content, and then determine a variety of innovative ways to address that pain point; however, make sure you keep the emphasis on the pain point.

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