There’s a saying that goes back a long, long time. “If it’s worth doing, it’s worth doing right.”
It’s applicable in so many ways, but today I’d like to apply it to Pay-Per-Click advertising. I’ve stated many times that I’m confident enough in PPC that I’d be willing to stake my personal and professional reputation on it – when it’s done right. Let’s talk about what that looks like.
Before We Get Started:
With VERY few exceptions, I would not have you get our theme confused with “If you want it done right, do it yourself.” Just like it’s worthwhile for your customers to hire you to solve their problems, I would recommend that you hire someone to handle PPC advertising for you. It’s not a “set it and forget it” sort of platform. It needs daily maintenance and management, which is not necessarily entrepreneur-friendly. You have a lot more important things to worry about, so it’s worth handing off to an expert that can focus on it.
What “PPC Done Right” Looks Like
Pay-Per-Click advertising on all platforms (Google AdWords, Yahoo!, Bing, Facebook, Instagram, Doubleclick, etc.) is a very complicated and intricate practice that’s not easily mastered or maintained. It takes a very specialized skill set to appropriately organize and execute campaigns.
In order for PPC to be done right it needs the following elements to be dialed in:
- An appropriate budget
- Impression Share
- Conversion Tracking
I’ll touch on the first two today and the last three next week.
A Good Budget
I recently wrote about how to come up with an appropriate PPC budget. While I think that explanation is pretty good, let’s take another look at it.
Say you’re wanting to grow your business by 1 job a day. You know you usually have the capacity, so you’re just looking to expand a little bit. At an average cost per click of $6.00 (which is very low for some markets), every time someone clicks on one of your ads, you’ll average in cost at about $6.00. If one out of every 5 clicks turns into a job (average call per click rate is 1 in 4), then that means you’ll pay $30.00 to get a job every day. Multiply that out by 22 working days a month and you’re looking at a budget of about $660.
I’d venture to say that if you’re not willing to spend at LEAST that amount on PPC, you’re probably not going to get much return. If you’re only willing to spend $10 per day, that amount probably won’t last you long. A daily budget of $10 means that you would likely only get 2 clicks in a day (at $6 per click), which means you’d go 2.5 days of clicks before getting a job.
This is where calculating impression share with your vendor comes in.
PPC is a complex and time-consuming practice, but it’s worth doing. Those that aren’t are going to struggle to keep up with competition.
- Find a trustworthy vendor to run your PPC campaigns and get them off your plate.
- Figure out your budget based on your business needs. If you need help, schedule a call with me to get one established.
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I get questions from business owners all the time saying, “I’m budgeting $1,200 per month in PPC. Should I spend more than that?”
The answer is usually “It depends on your impression share.”
Impression share is the percentage of times your ad is shown out of how many times your ad could have shown. For instance, if there are 1,000 applicable searches for “carpet cleaning” in my area and I show up 350 times, that’s a 35% impression share.
Now, is a 35% impression share good or bad? Well, that also depends. Ideally, I would want your business to show up as often as your budget will allow. Meaning, if you live in a smaller market with little competition and have the ability to show up 90%+ of the time, go for it! Otherwise, if your budget only allows you to have a 45-50% impression share, have your vendor do as much as they can to analyze peak performance criteria for your ads to maximize your budget.
Impression share gives you a great insight into your campaign performance and is something you should be asking your vendor about on a regular basis.
What Can Happen
Since impression share serves as a barometer for how you’re keeping up with your competition, it’s a useful tool to know when something’s going wrong.
Let me paint you a picture.
Suppose you’re watching your impression share to keep an eye out and it takes a sudden nosedive.
That could be due to a new competitor coming into town with a HUGE marketing budget (maybe someone with a palindrome for a brand). They start spending inordinate amounts of money on PPC and drown you out.
You and your vendor now have some research to do in order to figure out what your next move is. Do you increase your budget? Do you stay at your current budget and just try to ride it out, hoping that they’ll run out of money? (They will eventually.) Or you can go Braveheart on them. Your choice.
It’s pretty easy to see how knowing and understanding your Impression Share can be a game-changing factor in your business.
- Ask your vendor what your impression share is. They should be able to find it for you.
- Analyze where you’d like to be vs where you can afford to be and formulate a plan with your vendor to make that a reality.
- Keep an eye on your Impression Share to know where your competition is.