Do you think that you’re Cost per Acquisition is the lowest it could be? Are you happy with what you’re paying for it? If so, great! But here’s something that will surprise you: every single account I have seen still has the potential of lessening its cost.
Who doesn’t want more leads which get converted to sales without having to spend more on it? Sadly, I see so much wasted money spent on campaigns, bids and strategies which were not set up well. I’m writing this so that you will get the most for what you’re paying – to get the leads you need and have that converted into actual sales.
There are a lot of entrepreneurs who work on Adwords and everything else themselves – especially the bootstrapping first-timers. So I’m going to assume you have your set up already and that you max out the budget you have allocated on it every day.
Decrease Cost Per Click
Obvious fact: the cost per click difference between 3 and 1 is huge. But if your budget is not that generous, it would be best to aim for 3.
If your budget is maxed-out, decreasing your cost per click is smart. This allows you to get more for the same amount. Take a look at your conversion data and decrease the click per click for unconverted keywords.
Consider making automated scripts which could help you monitor your average position. What I do is set up daily rules. First, I use data from yesterday which helps me to do two things: increase bids on keywords that’s worse than position 3 and decrease bids for those which are better than position 3. This allows the keywords to be slightly below or above 3.
Believe it or not, I got twice the number of clicks for the same keywords, for that same small budget. Not Checking Your Segments
There are numerous factors to optimize your spending – specific day or time, search campaigns, desktop vs. mobile, etc.
Certain hours of the day are six times more expensive than others, for instance. Some days perform better. Take note of these. You might get sales at midnight to 8 AM – ungodly hours. But if that’s when the leads and sales come, take advantage of it.
Ad Delivery and Rotations Are Not Set To Optimize For Conversions
You have four choices for search campaigns:
1) Click Optimization
2) Conversion Optimization
3) 90-day Even Rotation Optimize
4) Indefinite Rotation
Some say that the first option is the best for most companies. It’s not. Believe me. If you have set up AdWords Conversion tracking, go for #2.
Only a few companies consult with me, asking for many clicks (as many as possible) with their working budget. They, of course, want leads and sales. But getting those clicks would be nothing if they do not perform the action you desire.
You’re Targeting Countries That You Don’t Want To
The default campaign location of Google is set to the USA and Canada. It’s OK if you ship to those two countries. Otherwise, change it. And even if you did, it would be better to make a duplicate campaign – one for each country.
Be careful. There are people who target the wrong country (this is bad for you). There are even some who accidentally targeted the whole world (this is disastrous). It’s funny but I’ve seen this happen.
Now if you are an international company, I recommend creating duplicate campaigns. Just like what was mentioned above, target each individually. Naturally, you will be making more money in some countries than in others. This, of course, can help you adjust your bids accordingly.
Not Changing Bids Based on Actual CPA Compared to Desired CPA
Most of us hate math but this here will make things easier to understand. Ok. So you want to spend $25 on your CPA. You have 11 keywords at $100 each with an average CPC of $5. What do you do?
What most people would do is this: pause or delete keywords, letting the funds go to those which have not been tested (most probably). Don’t!
I recommend decreasing the bid to the amount which would work for the CPA you need. For instance: from $5, the new bid is $1.25. Sure, you won’t have as many clicks but decreasing it, each click will be cheaper. If (and here’s to hoping) conversion rates do not change, you will meet your mark.
There is no 100% certainty to this but it would help if you monitor your keywords. It could be that your new bid took you to position 7 or that those clicking in your site are just price or window shopping.
Nevertheless, this would work if what you’re offering is high in quality and if your prices are fair.
*Lost in Translation?*
Fact based on personal experience: Even if the default language is other than English, people will call and / or fill up those forms (order or lead submission) in English. So target what you must target. Don’t let language be a barrier.
The only problem is if you get a Spanish call and none of you speaks the language. This leads to decreased CPA and CPC, especially when advertisers don’t really spend money on targeting additional languages.