One of the benefits of search engine marketing is its precision. In addition to that, one can even use remarketing strategy to show ads to users who have visited your website before. But quite often, the advertisers will ask question like how I can reduce advertising expenditures and increase sales further? The following are the three methods I have used for your reference:

Method #1: Remove Unnecessary Keywords

Many times when setting up an Adwords account for example, keywords are often matched by using “broad match” to find out keywords that are converting and those which aren’t. To optimize these ads, one can use Adwords “search term report”, which shows what keywords the user uses to trigger your ad.

search term report
Example of a search term report

When you find out the keywords are not relevant to the products or services that you are selling, you can add those terms to the “negative keywords” list, meaning that Google will no longer show the ads in their search results. In addition to that, some keywords that you have never think before will be found here. Therefore, advertisers can those to your lists to achieve better results.

Method #2: Pay attention to the time of users clicks

In some industries, such as online shops, the busiest time is often at night. When you use the “Time of day” report, you will know when most of your conversions are occurred and make appropriate changes on your campaign for example, increasing bids during the period that the conversions are good and decreasing bid when the conversion is low.

Method #3: Use different bidding strategy

Google has different bidding strategies for users, but most of them require the advertisers to setup conversion tracking (version tracking) correctly first. Also, it is recommended that the advertises account should have a minimum number of conversions before the strategies can be used.

There are many bidding strategies in Google, for example, enhanced CPC, target CPA, target ROAS, target position, etc. These strategies can help users achieve their desired results. For instance, if you use enhanced CPC, Google will automatically increase your bid costs based on past performance of the account (minimum of 20 conversions). The ultimate goal for enhanced bidding is to increase your conversions.

When I helped the client improved the conversions, I’ve used at least three strategies to achieve the goals and they are enhanced CPC, target CPA and target ROAS. Depending on the client’s goals, each bidding strategy is different. The biggest difference between Enhanced CPC (or called enhanced bidding) and target CPA or ROAS is that the latter requires you to input specific goals, and enhanced bidding is not required. Secondly, the system requirements to set up those strategies are different. Target CPA (that is, the cost of advertising for each conversion) requires a minimum conversion of 30 and to target ROAS, minimum conversion of 50 is required. Let me sidetrack a little bit to explain what “ROAS” is.

ROAS is the abbreviation of “Return on Ad Spend”, or mathematically ROAS equals to revenue generated by Ads divided by the total of ad costs.

The above three bidding strategies, which Google calls smart bidding or automated bidding, which use A.I. (artificial intelligence) to predict the bid costs to achieve the desired goals. During my testing period, I found automatic bidding sometimes brings excellent conversions to customers, while sometimes did not. So I’ll suggest that the reader should test it by yourself until you find a soft spot.

Of course, those are just three Adwords optimization methods. There are many ways to optimize Adwords account, such as landing page optimization, apply ads extensions to the ads, split testing and so on. If you are interested to the topics, you can like my FB page and I will write about it again!

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