Google Adwords is a great platform for business owners to improve their online business share. With proper understanding on adwords and right strategy, one could easily achieve good result.
The main problem that a small business owner could face here is in managing their PPC account. Adwords offer a solution to this with CPA technique. Here user will let adwords know how much (s)he is willing to pay for a conversion/lead. Adwords will automate the system internally and will set the keyword bids automatically in such a way to keep the cost/conversion in the limit. Sounds great, isn't it!
Now the question arises is, how much efficient this system is? Could a small scale business owner trust CPA campaign blindly? The answer is both yes and no.
Common problems faced by a CPA campaigner
We should say CPA campaigns are good enough to keep cost/conversion in a limit. But, how will it affect the conversion rate? Let us have a study. Consider the following example. An example that majority of the small scale business owners may have faced.
Bill is a small scale business owner. Bill knows the advantages of SEM and had started running PPC campaign. Bill found it difficult to control his CPC campaign but he was smart enough to switch his campaign to CPA. Bill was happy spending $10 for a conversion and he set his CPA as $10. He started getting business from adwords.
Case 1: After few months, Bill noticed that, he is spending almost same every day and number of conversions are also the same. His campaign was in a state of saturation. Bill wanted to increase his business share. He know that increasing CPA will help him to achieve more reach but he doesn’t wanted to do that as conversions above cost of $10 won’t give profit to his business. His daily budget was high but the campaign was spending not even half of the budget. He wanted to improve his online business share but was wondering how!
Case 2: After some months, Bill noticed that some of his keywords, which were performing in the past are not bringing any conversion to him. He knew he have many potential keywords, but only a few of them are converting now. He found his conversion rates are getting down day by day. He wanted to make all potential keywords performing and increase the conversion rate but he was having no idea to make it happen.
How CPA campaign works?
Before suggesting a solutions to the above mentioned problems, we have to dig the reason behind this. Lets start from the basics, from the working of CPA campaign.
Let us look how CPA works. It all depends on the history of the campaign. Adwords will check which all keywords used to bring conversions for the campaign in the past. It will again check the click/conversion rate. Considering the previous performance, the system will automatically bid for the keywords. Obviously, system will be promoting performing keywords the most. I repeat, system will promote the ‘performing keywords’. History of the campaign will be repeatedly checked to catch performing keywords as the campaign starts running.
Now, assume a CPA campaign. Let ‘x’ be the most performing keyword of the campaign. System will be pushing the keyword ‘x’ the most. But, we all know that every day won’t be the same for all keywords. Assume a scenario where the keyword ‘x’ has spend some money but had not brought any conversions. In the meantime some other keywords say ‘y’ or ‘z’ may have brought conversions to the campaign. So system may consider ‘y’ or ‘z’ as more performing than ‘x’ and will push those keywords more. In other words, exposure for the keyword ‘x’ gets limited. As the impressions gets limited, clicks and conversions will also get controlled and the graph of the keyword will go down. Practically, keywords ‘x’, ‘y’ and ‘z’ are potential keywords (as they can bring conversions) and limiting exposure of keyword ‘x’ means nothing but limiting conversions.
What i am trying to convey is that, in CPA campaigns some potential keywords may lack exposure (due to above mentioned reasons and many more). It may result in decreasing our conversion figures. So trusting CPA campaign blindly can ruin our conversion figures.
How to tackle this situation?
Now the question arises is, how could we tackle the problem..!!? The answer is simple. Monitor the campaign continuously. One may follow the following steps to get maximum benefit out of CPA campaign.
- Never forget the golden rule – don’t straightaway rush into CPA campaign. Run the campaign in CPC till we get a clear idea on keyword performance. If we rush into CPA, system may not identify all potential keywords and they may get neglected. So stick on to CPC until we get good conversion figures and all potential keywords get triggered.
- Be selective in keywords. Use only performing keywords in CPA campaign. 4000 keywords with CPA $10 won’t do good for the campaign. In case of higher number of performing keywords, split the campaign. Remember, lesser the number of keywords, higher will be the exposure (when CPA and daily budget is low).
- Get a detailed list of performing keywords under CPC campaign and continuously check whether all these keywords are converting under CPA campaign.
- Once we find a potential keyword not performing, pause the keyword in CPA campaign (if the campaign has lot of keywords) and start running it in CPC campaign. This will give more exposure to that keyword and will start performing. If you find CPA campaign more easy to handle, you may switch it into CPA once it get good conversion figures. You may find it nontechnical but this out of the box idea can increase your conversion rate.
Benefits of having more campaigns with lesser number of keywords:
Believe me, it’s the most efficient method to keep CPA campaigns performing (if you have low CPA and daily budget). Split into different campaigns with lesser number of keywords. As we said, when CPA is limited, lesser number of keywords means more exposure to keywords and hence more result. If the keyword stops performing under CPA (due to issue that we have discussed earlier), we could switch the entire campaign to CPC (lesser number of keywords reduces the risk factor in CPC) and switch back when it starts performing.
The logic is simple, giving maximum exposure to all keywords. As CPA is set, cost/conversion will be in the limit. One can sit back, relax and see business growing through this campaigns. What he should do is just monitor the campaigns in frequent intervals.
Feel free to drop your thoughts in the comments section below. Thanks for reading!
This resource was published by Akhil Alappattu05 February 2016
Akhil is a Search Engine Marketing specialist at Webdura Technologies. He is a Bing Ads Accredited Professional with AdWords, Analytics and Hubspot certification.