To increase conversions, reduce the spend and improve the ROI is the dream of every internet marketer.
However, in reality, achieving the above-mentioned goals are not that easy to achieve as they seem to be.
In AdWords, there are so many things like the keywords, ads, ad groups campaigns that it becomes really complicated to know if you are doing the right thing or not.
AdWords is pretty simple yet little difficult. It is simple to learn but difficult to master.
Being dynamic in nature, it sometimes frustrates the marketers who do not see the ROI that they expected from their AdWords Campaigns.
To avoid this frustration, as an advertiser, you have to be strategic in your approach and use every Advanced AdWords strategy to its optimal use.
To help you improve the ROI of your AdWords campaigns, here are some advanced AdWords strategies. But first, let us see what AdWords ROI actually is and how is it calculated.
What is ROI in AdWords?
ROI aka Return On Investment is a key performance indicator that is used by almost every businessman to determine the profitability.
ROI plays a key role in determining the profits of your AdWords campaigns.
It is basically the ratio of your net profits and costs.
It is the most important measurement for an advertiser because it shows the exact effect your advertising efforts have on your business.
The formula for calculating the ROI is:
To calculate the ROI, first, you need to measure the Conversions and the total cost.
Conversions are the actions of the customers that are valuable to you. They can be sales, lead generation, signups, web page visits, downloads and more.
After you have measured the conversions, you can begin to evaluate your ROI. Remember, the value of each conversion should be greater than the amount that you spent to get the conversion.
Taking the above formula into consideration, let us say that you have a product whose cost of production is $100 and it is sold for $150. By advertising your product through AdWords, you are able to sell 10 units if your product.
Hence, your total cost is $10010=$1000 and your total revenue is $15010=$1500.
In this example, you are earning 50% return on investment. For every $1 that you spend, you are getting $1.50 back.
Advanced AdWords strategies to boost up your ROI.
1. Add Negative Keywords
Negative keywords are the best possible thing that has ever happened to Google Adwords. They are the first ones to come to rescue a drowning AdWords Campaign.
Negative keywords are those keywords that prevent your ads from being triggered by irrelevant search queries.
They help you by showing your ads to those people who are more likely to click on them.
[click_to_tweet tweet=”Negative Keywords make your ads highly specific by removing all the irrelevant search queries.” quote=”Negative Keywords make your ads highly specific by removing all the irrelevant search queries.”]
By attracting only the relevant search terms, negative keywords also saves your ad spend that would have been wasted by the irrelevant clicks.
The best use of negative keywords is to reduce the cost by excluding the keywords where you might be spending money but not generating a positive return.
Apart from this, the negative keywords also reduce the irrelevant ad impressions and make your ad highly targeted.
By focussing on showing your ads to a highly targeted audience, negative keywords enhance your CTR.
When your CTR is increased, the relevance of your ads with respect to the search query is determined, thereby improving your Quality Score.
Once your CTR is increased and the Quality Score is improved, The Cost per Click is reduced, which is a great advantage to the advertisers as reducing the CPC is one of the key goals that every advertiser wants to achieve.
By making your ads highly targeted, the CTR gets increased. Increased CTR, in turn, increases the conversions which ultimately increase your ROI.
Some advertisers make this mistake of not regularly adding the negative keywords.
To avoid this mistake, make a habit of adding potential negative search terms while spending a time of researching the regular keywords.
Resources to build negative keywords lists:
(i) Search Query Report
This is the most important resource to find negative keywords.
Analyze your search term reports and see what terms is your ad actually displaying for.
If you see any irrelevant terms, add them as negative keywords to your ad groups or campaigns.
(ii) Google AdWords Keyword Planner
You can use Google AdWords Keyword Planner to either build out a new negative keyword list or expand an existing one, within your account.
This keyword tool does not only help in generating keyword ideas but it also suggests ad group ideas, gives the historical statistics of your Adwords campaigns, gives you insights to choose competitive bids and also predicts the performance of your keywords.
(iii) Competitor Research
Use your competitor terms as negative keywords and while you are doing this make sure to separate them from your other keywords.
While adding the competitor terms in your negative keyword list, take both the brand name and the names of their products into consideration.
To know more about competitor research, you can read our previous blog on Track AdWords Competitors with These Amazing PPC tools.
(iv) Take Analytics into account
Use the Analytics to get insights on the behavioral information for some keywords.
If you find a keyword that has high traffic but no conversions, you can add that keyword to your negative keyword list.
(v) Misspellings and Typing Errors
While using the search engines, people hardly care for their spelling or typing mistakes due to the fact their mistakes will be auto corrected.
Sometimes, they may even be searching to find the right spelling. So you should expect searches to be there with misspellings and typing errors.
(vi) A Thesaurus
A thesaurus is not only helpful in creating a negative keyword list but also your main keyword list.
Since the online space is highly competitive and if you miss a variation of an important negative keyword, then it may cost you impressions, clicks, and budget.
However, using a thesaurus can be a fast and easy way to negative keywords as well as variations of those negative keywords.
2. Use Single Keyword Ad Group
Single Keyword Ad Group (SKAG) as the name suggests is only one keyword per ad group that is highly relevant to the product/service that you are selling.
Single Keyword Ad Groups are a way for you to gain more control and achieve high performance from your AdWords account.
This way the SKAG makes your ad message relevant to the keyword that your prospect is searching for in Google.
This message match will bring your active visitors much closer to clicking on your ad.
Moreover, if your landing page perfectly correlates with your ad, the visitor could easily turn into a customer.
[click_to_tweet tweet=”SKAG increases the CTR by ensuring a perfect alignment between the keywords and the ads.” quote=”SKAG increases the CTR by ensuring a perfect alignment between the keywords and the ads.”]
Increased CTR, in turn, improves the Quality Score and reduces the Cost per Click.
SKAG being highly specific to your product/services attracts highly targeted traffic that is on a verge of converting. This initiates more conversions thereby improving your overall ROI.
To create a Single Keyword Ad Group for these keywords, analyze and find out the keywords that generate most of the clicks and conversions
It is important for you to find out the keywords that generate most of the clicks and conversions because it is totally up to you to increase the efficiency of these already efficient keywords even more.
Just as an illustration think of a keyword that isn’t generating any conversions but is attracting a lot of clicks. You can take that keyword out from the mixed ad group and add it to the Single Keyword Ad Group. This will definitely enhance the efficiency of that keyword.
How to identify high performing keywords for creating SKAG?
The best resource to find the high performing keywords for creating SKAG is the “Search Term Report”.
The Search Terms are those terms that the users actually used while searching. They give you a better idea of the common words used by the prospects.
By viewing the CTR, you can see which of your keywords were relevant enough to let the users click on your ads. And then you can use this information to create SKAG for high performing keywords.
In a nutshell, the efficiency of your campaigns automatically increases thereby increasing the ROI, when you create Single Keyword Ad Groups.
3. In-Market Targeting
In-Market Targeting is a way to connect with users who are actively researching or comparing the products/services.
To make a user a part of the In-Market audience, Google evaluated the clicks on the related ads and corresponding conversions, the content of the site and the pages that they visit along with the frequency of the visits.
This way, Google accurately categorizes the users into the In-Market audience.
For example, you are a laptop dealer looking to target searchers who are ready to buy a laptop.
Google will look to find people who are clicking on the ads related to laptops, exploring relevant searches, looking at customer reviews, laptop comparison etc, and will predict whether these consumers are ready to buy.
As an advertiser, you can tailor the message of your ads to make them highly relevant to your In-Market audience.
Why should you use In-Market Targeting?
By helping you to connect with the customers at the last step before they make a purchase decision, In-Market Targeting can drive incremental conversions.
The In-Market Targeting constructs a powerful classification of the behavior of the user and uses these segments to present the right offer at the right time in front of those who are very much interested in your product/service.
By combining In-Market Targeting with Remarketing, you can drive highly qualified users to your site and thereby increase the conversions.
[click_to_tweet tweet=”In-Market targeting allows you to target people further down the sales funnel.” quote=”In-Market targeting allows you to target people further down the sales funnel.”]
With the help Google’s extensive data, you can know focus on people who have signaled their intent to purchase a specific product or service.
This allows you to tailor your ads accordingly to reach out to people, you know are ready to make a purchase.
4. Remarketing List for Search Ads (RLSA)
RLSA or Remarketing Lists for Search Ads is another opportunity to optimize your AdWords Campaigns and increase the ROI.
The RLSA Campaigns help you to put your ad in front of people who have visited your page once or have viewed similar pages.
RLSA helps you to connect to those visitors that left your site without making a purchase.
Along with targeting your previous visitors, RLSA also targets the people who conduct a similar search on Google.
With RLSA campaigns, you can create highly specific ads to target the specific audience. Higher specificity in terms of ads and audience broadens the chances of getting more conversions thereby benefitting from an improved ROI.
Audience Segmentation in RLSA
The audience segmentation means dividing the audience on the basis of their activities on your website.
(i) Target that audience through RLSA Campaigns who visited your website but did not make any purchase.
(ii) You can create separate Remarketing List for those people who visited your website and made a purchase as well. Giving them additional discounts for future products are a great way to increase conversions.
(iii) Optimize bids for people who are already familiar with your product.
(iv) Cross-sell to customers who have bought one product from you by offering them complimentary products.
Benefits of using RLSA.
(i) With the help of RLSAs, you can adjust your search campaigns to get more qualified and valuable users who are already aware of your website. And when used optimally, RLSA can result in a more efficient use of ad spend, better conversions and can improve the ROI.
(ii) RLSA is more cost-effective because they result in a slightly lower Cost per Click and a higher conversion rate because the users are already familiar with your website.
(iii) The strategy of RLSA to show your ads to users who have already visited your website is great if you have a limited budget because users seeing your ads are a potentially more qualified audience who have a higher probability of converting.
How to get more from your RLSA Campaigns?
(i) Audience Targeting
While targeting the audience, do not just target people who have been on your website for a particular period, say 30 days. Test different time durations while targeting.
Also, don’t just think about people who haven’t converted. Take into consideration those people also who have converted previously. They may be looking to purchase again and targeting the previous customers might prove beneficial for you as they have a higher chance of making a purchase again.
(ii) Keyword Strategy
Instead of adding audience to your current campaigns for remarketing, create new campaigns with comparatively general keywords. These keywords can be ones that you might have never targeted through search campaigns. General keywords, when combined with the remarketing audience in a new campaign, gives promising results.
(iii) Ad Copy
Rather than creating general ads to target the people who visited your website, you should create new ads for RLSA with a focus on your remarketing audience.
For example, if someone visited your website but did not make a purchase, them you should offer them a discount.
5. Affinity Targeting
Affinity targeting is that type of targeting where the advertiser analyzes the user’s overall interests, passions, and lifestyles in order to get a better understanding of their choices and interests. It is a type of Interest based targeting.
[click_to_tweet tweet=”In Affinity Targeting, the audience is broken down into groups of people having similar interest.” quote=”In Affinity Targeting, the audience is broken down into groups of people having similar interest.”]
The reason why the breakdown of an audience is on the basis of interests is that Google is well versed with the search behavior of its users. It uses the people’s search behavior, browsing behavior and the web pages that the people visit.
Google tracks the search and browsing behavior of the people to show them better ads according to their interests. By using affinity targeting, you can show informative and highly useful ads to the users.
Affinity does not indicate the web pages that the user is watching currently, instead it indicates the pages that the users watch or visit very often.
What are the benefits of Affinity Targeting?
- The advertisers are no longer dependent on the pre-defined audience.
- Multiple personas can be put together to target highly specific audience to your business.
- More control over targeting the customers.
There may be times that a certain user may not have searched for your product/service, but they might have indicated any pattern that may have a close resemblance to your product/service. Hence, you can target these customers to enlarge your chances of getting additional conversions.
Sometimes, the user might not have the knowledge about your product/service, but their online activities strongly indicate that they might be interested in your product/service.
Affinity targeting enables you to reveal yourself in front of these people giving you a chance to increase your conversions.
Affinity targeting helps Google to display your ads in front of those people who have relevant behaviors with respect to your product/service.
6. Dynamic Keyword Insertion
Google AdWords offers a feature called the Dynamic Keyword Insertion (DKI). In this, the content of your ad is automatically changed to match the search query of the user.
With Dynamic Keyword Insertion, you can take any text from the landing page and then change it out with what you are specifying in the URL.
This will let you create one landing page for a product/service theme and then you can change the headlines and CTAs to match the keyword that the visitor is looking for.
Moreover, this will make your ads and landing pages highly relevant which will persuade Google to increase your Quality Score.
[click_to_tweet tweet=”Dynamic Keyword Insertion improves your Quality Score which ultimately increases the ROI.” quote=”Dynamic Keyword Insertion improves your Quality Score which ultimately increases the ROI.”]
How does Dynamic Keyword Insertion work?
Let us say you are an e-commerce owner, specializing in office furniture and you want to increase your visibility on the Search Engine Result Page for queries which denote a user’s intent to buy office furniture.
If you have an ad campaign with the title “Office Furniture?”
You can use Dynamic Keyword Insertion to further appeal to the user’s search query.
This will include”
- Buy Office Furniture
- Discount Office Furniture
- Affordable Office Furniture
Each of the above keywords will appeal to the different types of customers.
Although individually each of the customer categories may not bring in a great number of conversions, advertising to all of them can help you to get sufficient conversions.
What are the reasons to use Dynamic Keyword Insertion?
(i) Higher Relevancy
As the ads are dynamically updated to match the search query of the customer. Therefore, your ads become directly relevant to the exact thing that is being searched for.
(ii) Increased CTR
When the dynamically inserted keywords match the query of the user, Google automatically bolds them. Which makes them noticeable.
The users are more likely to click on those ads because these ads indicate higher relevance. For this reason, DKI increases the CTR.
(iii) Higher Quality Score
Getting a higher quality Score is one of the main objectives of every AdWords marketer
Hence, higher relevancy and increased CTR increases your overall Quality Score.
(iv) Saves Time
Creating ads by using Dynamic Keyword Insertion makes it a lot easier for you to create unique ads for a lot of keywords.
DKI prevents you from spending a lot of hours making sure that each one of your ads is directly related to respective ad group and matches the corresponding landing page.
The online marketing space is growing at a much faster pace. There are lots of advertisers using Google AdWords to promote their business. To see which of your campaigns are working and which are not, tracking the ROI is a wise idea.
ROI gives you an insight into how much return have you got on your investment. More the ROI more will be your profit. Hence, it becomes crystal clear that improving the ROI is one of the most important objectives of an AdWords Campaign.
This blog post covers 6 Advanced AdWords tips that every AdWords marketer should know to improve the ROI thereby making the AdWords campaigns more and more profitable.