A Machinery Engineer saves 66% of their ad budget…
When a company commits to setting money aside for an advertising budget it expects to get some results. In this case the company was spending a substantial sum: around £800 a month allocated to online PPC advertising.
Of course this was driving lots of traffic to the website. You can’t spend money without actually getting click throughs to your website. But not all clicks are equal. In any adwords campaign there will be a large number of click throughs that don’t convert and this is measured by your conversion rate. i.e. the % of click throughs that result in a sale.
What happens commonly with adwords campaigns, even set up by seemingly quite competent and experienced online advertising companies, is the campaign is not correctly optimised to minimise irrelevant traffic. This happens because the account manager is chasing business and prioritising quantity over quality. Something that is also routinely encouraged by the online advertising platforms themselves since they are in turn chasing revenue and want a larger share of the advertisers perceived profit.
In this case the company was achieving a lot of PPC traffic volume in a quite specialised service area. This is a red flag in itself. Let’s look at it this way; if a company is selling “small business marketing” they can drive a ton of volume by advertising for the keyword “marketing” but a lot of the people searching for marketing will not want to buy small business marketing services at all so they will lose a large % of their pay per click ad budget to irrelevant traffic. That’s obvious so they will likely be using the search terms “business marketing” and “small business marketing” however even with these terms there is significant opportunity to attract irrelevant traffic if the PPC campaign is not set up and optimised properly.
In this case effective PPC campaign optimisation enabled a 66% saving against the ongoing spend and more business was being generated because the quantity of relevant high quality pay per click click throughs went up significantly. The company in question was able to use the freed up budget to invest in new machinery for a new service proposition, build a new website and run a new highly optimised online advertising campaign. All from the savings made on its existing Ad spend! Pretty amazing result I’m sure you will agree.
Is your business marketing spend highly optimised? Are you getting the profitability you want from your advertising campaign?
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