{"id":9753,"date":"2018-05-14T09:25:26","date_gmt":"2018-05-14T06:25:26","guid":{"rendered":"https:\/\/www.reliablesoft.net\/?p=9753"},"modified":"2021-06-28T17:55:03","modified_gmt":"2021-06-28T14:55:03","slug":"profitable-ppc-campaign","status":"publish","type":"post","link":"https:\/\/www.reliablesoft.net\/profitable-ppc-campaign\/","title":{"rendered":"How to Manage a Profitable PPC Campaign (Lessons Learned After Spending $1 Million on Google Adwords)"},"content":{"rendered":"

The main goal of a PPC Campaign is to generate profit. If that goal is not achieved, then you should take the correct decision and stop your campaigns because you are simply losing your money.<\/p>\n

This is a very basic principle that every business owner should follow, whether it\u2019s PPC campaigns on AdWords, Facebook Paid ads, LinkedIn Ads or any other platform.<\/p>\n

Don\u2019t get me wrong, a PPC campaign can be profitable. In fact, it\u2019s one of the best ways to grow your business fast.<\/p>\n

The problem is that running profitable PPC campaigns, is not always so easy. If you fall into the trap believing that you can make money with PPC by just setting up a campaign and let it run on \u2018auto-pilot\u2019, then it\u2019s like throwing your money in a black hole.<\/p>\n

Proper PPC management<\/a><\/strong> needs to be planned correctly. The process begins before creating your campaigns on AdWords and continues as long as the campaigns are generating a positive ROI.<\/p>\n

More than 1 Million Dollars Managed on AdWords the last 2 years<\/strong><\/p>\n

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More than $1 Million Spend on PPC Campaigns<\/figcaption><\/figure>\n

As a certified Google AdWords Partner<\/strong><\/a>, we manage a number of PPC campaigns for our clients. The last two years, the total ad spend was more than 1 million USD.<\/p>\n

Obviously, the return on investment was bigger than that, and this is the reason our clients increased their spending to those levels.<\/p>\n

Our experience with AdWords goes back even more years and my goal with this post is to share with you the lessons learned and help you understand how to launch, setup and manage profitable PPC campaigns.<\/p>\n

For those new to AdWords and PPC, let me just mention that Paid Search Advertising (PSA) is one of the components that make up SEM (Search Engine Marketing<\/a>). The other component is SEO (Search Engine Optimization<\/a>).<\/p><\/blockquote>\n

\"Search
Search Engine Marketing (SEM) Components<\/figcaption><\/figure>\n

What is a profitable PPC Campaign?<\/h2>\n

Before we get into the details on how to improve the performance of your campaigns, let\u2019s clear out what do we mean by profitable PPC campaigns.<\/p>\n

A profitable PPC campaign is the one that generates a positive Return on Investment (ROI)<\/strong>.<\/p>\n

The Return On Investment (ROI) is usually calculated as:<\/p>\n

ROI = (Revenue – Cost of goods sold) \/ Cost of goods sold.<\/em><\/p>\n

In this case the cost of goods sold should include AdWords costs (i.e. ad spend and management fees).<\/p>\n

For example, let’s say you have a product that costs $50 to produce, and sells for $100. You run a PPC Campaign on AdWords and sell 10 products per month.<\/p>\n

Your total sales are $1000, your AdWords Costs are $250 (Ad spent and management fees).<\/p>\n

Your ROI is ($1000-($500+$250)) \/ ($500+$250) = 33%.<\/p>\n

In this case you are making profit from AdWords.<\/p>\n

The point I want to make here is that when calculating the profitability of an AdWords campaign, you should not only take into account the Advertising and management fees but also other costs.<\/p>\n

Likewise, you should also include in your calculations indirect benefits gained from running a Google campaign like sales or leads generated because of the exposure you have with AdWords.<\/p>\n

Consider the example below. The total online sales were $250 but because of the indirect benefits offered by AdWords, the company generated an additional $200 in sales. This should also be included in your calculations in order to arrive at an accurate figure.<\/p>\n

\"How
How to Calculate Adwords Costs<\/figcaption><\/figure>\n

Don\u2019t overlook this step because if you don\u2019t have a valid way to calculate the true return from the investment made on PPC, it will be difficult to decide if this a profitable channel for your business.<\/p>\n

15 Lessons Learned After Spending $1 Million on Google Adwords<\/h2>\n

Follow the 15 best practices below to increase your chances of succeeding with AdWords.<\/p>\n

1. Create a plan with goals and milestones<\/h3>\n

Planning is important when running PPC Campaigns. Before creating your campaigns in AdWords, you should create a plan with specific goals and milestones.<\/p>\n

Your initial plan should include things like:<\/p>\n