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15th July 2014 |  Written by Daniel Humphreys

5 Pay Per Click E-commerce Tips

1. Optimise for Revenue – Every Conversion isn’t equal

I recently reviewed two new client accounts that were both optimised on the assumption that every conversion is equal. Conversions are not all equal. Different conversions will regularly include the sale of different products and importantly, varying amounts of revenue. Accordingly don’t optimise your campaigns to obtain the maximum number of conversions. Instead focus on obtaining the maximum revenue.

 

2. Campaign return on investment analysis

Following on from tip number 1 make sure to regularly calculate your return on investment from each of your AdWords campaigns.

Return on Investment = (RevenueSpend) / Spend

The results of this calculation will show you how much revenue you are receiving for every pound you spend on each campaign. Compare each campaigns return on investment and use that data to allocate your budget between those campaigns rather than how many conversions each campaign obtains. This analysis becomes doubly important if your budget is limited because to obtain the maximum revenue you need to maximise every pound you spend.

 

3. Google Shopping

One common Pay Per Click oversight I have encountered again recently is where a new client has Google Shopping live but no other campaigns. If you are price competitive then Google Shopping often appears to out perform product search campaigns if you focus solely on the number of sales. However, separate product search campaigns often provide a higher return on investment than Google Shopping. This is because the average order value of each conversion is often higher. A further advantage is that by running search campaigns alongside Google Shopping you take up more space on Google’s results pages meaning you have a greater chance of obtaining a sale.

 

4. Don’t forget assisted revenue

Unfortunately not everyone who clicks on your Pay Per Click adverts buys your goods. However that doesn’t mean they won’t in the future. In Google Analytics you can obtain an insight into your customers’ conversion paths. For example you can see if users who have found your business by your Pay Per Click adverts and did not convert then come back and buy your goods by going directly to your website. These users may not have known about your business until they clicked on your PPC advert. In this case your Pay Per Click adverts assisted with obtaining that revenue. Accordingly, assisted revenue is a factor you need to consider when optimising your AdWords account. This data is available under Multi Channel Attribution in Google Analytics.

 

5. Love your Product Performance data

Love may be a bit strong but make sure you are using this data. In Google Analytics you can see the performance of each individual product. This data can be incredibly useful and is often overlooked. One way I like to utilise this data is to use it to help decide which groups of products should be prioritised in AdWords. There are also subtler ways to make good use of this data. For example, if you know a certain range that provides a strong return then you can include that as a site link extension to appear beneath your Pay Per Click adverts.

ppc diagram

If you have an e-commerce website and are looking to boost your return on investment, contact us today.

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