How to increase the ROI of your AdWords campaigns

Are you using AdWords?

The money you spend on AdWords should be distributed in such a way that would bring the most profit to your business and increase your ROI.

So, you thought you would give a try to starting your first AdWords campaign? Well, this is a great thought. AdWords can be very profitable for your business. However, should you calculate how much profit you make compared to the amount you spend for your ads? Let ‘s see.

First step would be to calculate your Return On Investment (ROI) by using this simple equation: ROI = (Revenue – Cost of goods sold) / Cost of goods sold. The second step would be to increase your ROI in order to ensure that the money you spend really counts.

Increasing your ROI is the final result of a successful optimization of your Adwords campaigns. You have to keep in mind that the process of optimization is not a matter done in 1 hour or 1 day; it is necessary to launch the campaigns and track the evolution. This way, you can see which campaigns and keywords are performing better to keep working with and to get rid of those that are not working. You should also be aware that every industry has its ROI “common” levels. Some industries have a really high ROI level. Compare yours with the industry average to check how you’re doing. In this post, we will show you some tips on how to optimize your campaigns so that you can get the highest ROI possible, no matter your industry.

Read here for more Google Ads for eCommerce Tips!

#1 ROI increase: keywords optimization

This is one of the most important part of each Adwords campaign. When you bid for a keyword, it means that your ad will appear when someone looks for it on Google. Picking the best keywords to bid for is not an easy task. When there are many announcers bidding for a specific keyword, the cost of that keyword will increase greatly. For that reason, doing keyword research will be essential if you want to bid for an effective one at a low cost. Also, be sure not to bid for keywords that are not that relevant to your store. Google will detect that and will make you pay a higher cost and will lower your ad’s quality score. There are tools like Kwfinder or Google Keyword Planner (this function is integrated into AdWords) for helping you with your keyword research.

#2 Ads optimization

Try to make your ads attractive to your potential customers. While doing this creative process, always ask yourself: “If I were the customer, what would I like to see on this ad?”  So, if your store is selling mobile phones, and I was the customer, I would like to see that your company does fast shipping. Also, always add some “Ads Extensions” for your ads. Google recommends using at least 4 extensions.

#3 Bidding optimization

Make sure to check the bounce rate of each keyword that you are bidding for. Then, detect those keywords that have a high bounce rate and lower their CPC or even delete them.  Increase the bidding of the keywords that are working well for you by even just a little bit. 

#4 Set demographics

Try to identify the gender and location of your potential customers. For example, if you are selling beauty products, maybe you should increase the bidding for clicks that are coming from the female public.

#5 Set locations

Identify in which location your potential customers live and focus your campaigns on those areas. This will help you focus your investment directly on your potential customers, decreasing the waste of money.

By the way, you already know the PMAX campaigns of Google and Microsoft? you can’t miss them!

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