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Effective YouTube Ads for Beginners: A Comprehensive How-To Guide

This guide is tailored to those who are new to YouTube advertising, providing an overview of the platform’s immense user base and daily usage habits.

As a platform with over 2 billion logged-in users monthly, YouTube offers an unparalleled opportunity for coaches, consultants, experts and B2C / B2B marketing professionals to reach a wide audience and increase leads, sales and overall engagement with your brand.

We’ll start by delving into the power of YouTube advertising – understanding its massive user base and daily consumption patterns.

We will then explore different types of Youtube ads such as TrueView ads and discuss their benefits in viewer-controlled advertisements. (See the full list here.)


As we move forward, we’ll examine how strategic ad placement can help build brand awareness and deeper engagement through your YouTube Ads. We will also touch upon creating relatable content that fosters audience-brand connections.

Since this is a YouTube ads for beginners article, we’ve made it simple for you to navigate with a table of contents below. If you are considering YouTube ads (you should) – check this out (why YouTube ads for your business).

In the final section, we’ll provide tips on optimizing your first Youtube Ad campaign including insights from analytics like views and clicks while focusing on maximizing impact while minimizing costs.

So if you’re ready to take advantage of youtube ads for beginners, let’s dive in! (Here is expert YouTube ads information on the areas we cover for YouTube Advertising Campaigns).

Table of Contents:

Understanding the Power of YouTube Advertising

If you want to reach a massive audience, YouTube is where it’s at. The sheer size of YouTube’s user base and daily video viewing is remarkable, totaling a staggering two billion people and one billion hours respectively.

While you can get massive amounts of traffic, we recommend focusing on a segment of your market, and specialize with messages and content that helps YOUR audiences with solutions you provide.

But what does this mean for businesses?

Let’s dig deeper.

Even if you are starting out with YouTube ads for beginners, this is meant to be an introduction. And, if you are in the coaching, consulting, course creating and expert business, this article will help you get started with running YouTube ads.

You can get started displaying skippable ads at a low cost.

YouTube ads cost can start at just $10-20 USD a day for beginners. (Note: at our YouTube Ads Agency, we manage and run budgets from a few hundred dollars a day to over $100k per month)

Most common YouTube ad formats: (Here at Chaosmap, we use skippable video ads almost exclusively)


The Massive User Base of YouTube

Why do these numbers matter?

With over half of all internet users on YouTube, this platform provides a massive user base to potentially reach your target audience.

That means every other person online could be your potential customer, just waiting to discover your brand through killer ads. It also means that no matter what industry you’re in, your target audience is probably hanging out on this platform.

Note: “The riches are in the niches” as the saying goes – so don’t forget to segment your target audiences and messaging.

Daily Consumption Patterns on YouTube

But it’s not just about the sheer number of users.

The way people consume content on YouTube is key. On average, viewers spend about 40 minutes per session watching videos – longer than any other social media site.

That’s plenty of time for advertisers to grab their attention with awesome ads.

And here’s the best part: unlike TV commercials that annoy viewers, YouTube ads can actually enhance viewer engagement if done right. Talk about a win-win.

In a nutshell, understanding these aspects can help you harness the power of YouTube and strategically position your business in front of billions of people worldwide.

Note: For big brands this opens up large opportunities, as indicated. However, for you – a small business owner, focus more on niching down your audience / market, and speak to their internal language and problems. More on that below.

“Unlock the potential of YouTube advertising. With over 2 billion users and 1 billion hours watched daily, reach your target audience like never before. YouTube Ads For Beginners: #YouTubeAds #DigitalMarketing” Click to Tweet

Exploring Different Types of YouTube Ads

If you want to amp up your advertising game, you gotta know the YouTube ad formats. One standout format is TrueView ads.

They let viewers decide if they wanna watch your ad or not, which means more engagement and less annoyance.


Note: Overlay ads are a legacy ad format that appears on desktop only. (2023)

What are TrueView ads?

TrueView ads are a YouTube and Google Ads video ad format. Unlike those pesky interruptions, viewers can skip these ads after 5 seconds if they’re not interested. It’s a win-win – viewers get control, and advertisers only pay when their content is actually engaged with.

Benefits of viewer-controlled ads

Viewer-controlled ads like TrueView have some insightful perks for advertisers:

  • User Engagement: When viewers choose to watch your ad, you know they’re genuinely interested. That means higher engagement rates, baby.
  • Better Targeting: With TrueView, you only pay for actual views or interactions. So, your marketing budget goes to the people who actually care about your stuff.
  • Creative Freedom: No strict time limits mean you can get creative with your ads. Tell your brand story and captivate your audience.

Understanding different YouTube ad types, especially viewer-controlled ones like TrueView, helps you create engaging and cost-effective campaigns. It’s all about making meaningful connections with potential customers and clients who actively choose to engage with your content.

Creating Relatable Content in Your Ads

“Discover the power of TrueView ads on YouTube. Engage viewers, target your audience, and unleash your creativity with viewer-controlled ads. #YouTubeAds #MarketingTips” Click to Tweet

Building Brand Awareness with YouTube Ads

The power of YouTube advertising goes beyond reaching a huge audience. It’s like a virtual megaphone for your brand, but with better targeting options. So, get ready to make some noise.

Strategic Ad Placement: Where It’s At

To maximize the impact of your ad spend on YouTube, you should focus on targeting content and channels relevant to your business through keyword selection. It’s like finding the perfect spot at a party – you want to be where the action is.

Use keyword targeting to show your ads alongside videos or channels that relate to your business. If you’re a business coach, aim for videos about leadership development. Related videos are essential – it’s like hitting the bullseye.

You can pull out your top 50 YouTube search results to start.

For example, if you are teaching how to “grow tomatoes”, create relevant videos and run skippable video ads on monetizable video assets that are relevant. (example results from tube sift):


Partnering with Popular (and Relevant) Videos

Gain access to the exclusive Cool Kids Club by partnering with Popular Videos in your niche. Partner up with popular videos in your niche. It’s like getting a VIP pass to their audience and gaining instant street cred.

But choose your partners wisely. Make sure their values and messaging align with yours. Think of it as partnering up with a relevant email list or providing increased value to your products and services via affiliates.

Tips for Successful Brand Building via YouTube Ads:

  • Create High-Quality Content: Quality content is like catnip for audiences. They can’t resist sharing it, and that’s how your brand goes viral. Adding value and helping your audience must be your primary goal in content creation.
  • Leverage Influencer Partnerships: Team up with influencers who have a loyal following. Tap into the power of influencers with a devoted fan base to get your message out there and increase your reputation.
  • Maintain Consistency Across Platforms: Keep your branding consistent across all platforms. It’s like wearing the same outfit to every party – people will recognize you and know what to expect.
  • Before You Begin – Here are the 10 questions to ask before starting YouTube Advertising (and if you need help, go here).

So, get your YouTube advertising game on point, and watch your brand awareness skyrocket. It’s like turning up the volume on your success. “Attention, Interest, Desire and Action” (AIDA) should drive your own Video Ads Framework.


Google provides a starter article here.

Key Takeaway: 

This section highlights the importance of YouTube advertising for building brand awareness. It emphasizes strategic ad placement, such as using keyword targeting and partnering with popular videos in your niche. The tips provided include creating high-quality content, leveraging influencer partnerships, and maintaining consistency across platforms to maximize success.

And, don’t forget to enhance your omni-channel experience by running brand search text ads and retargeting strategies.

Creating Relatable Content in Your Ads

An essential aspect of ad creation is relatability and relevancy.

Craft messages that resonate with audiences to capture attention and foster connections, leading to higher conversion rates. Continue to drive traffic onto a targeted landing page and funnel experience that is consistent and congruent to your original message and hook.

Crafting Relatable Ad Messages

The first step to a successful YouTube ad campaign is crafting relatable messages.

Understand your:

  • target audience
  • their needs
  • preferences
  • and problems.

Then create ads that speak directly to them.

Tell stories through your ads for even greater personalization and interaction.

Show how your product or service has helped others or share your brand’s journey. Stories capture attention and make people relate more closely to what you’re promoting and sharing.


Fostering Consumer-Brand Connections Through Unique Content

Ads should aim to foster connections, not just sell products. Create a bond of confidence and mutual advantage that will endure.

Show empathy by addressing potential concerns within the ad. Use familiar language that everyone can understand.

Create trust with reassurances like money-back guarantees and positive customer testimonials and brand reviews.

  • Show Empathy: Understand and address customer concerns within the ad.
  • Use Familiar Language: Avoid confusing jargon.
  • Create Trust: Provide reassurances like money-back guarantees and positive testimonials.

In essence, creating relatable content in YouTube ads requires deep knowledge of your audience and genuine care for their needs and desires. It’s the secret sauce every successful coach, consultant, expert, CEO, and VP of marketing needs.

“Capture attention and foster connections with relatable YouTube ads. Craft messages that resonate, tell stories, show empathy, and build trust. #YouTubeAds #MarketingTips” Click to Tweet

Optimizing Your First YouTube Ad Campaign

Launching a successful YouTube campaign is more than just creating an ad. It’s like a science experiment, but with less lab coats and more cat videos. You need to optimize based on analytics, because numbers don’t lie, unlike that friend who always says they’ll watch your videos but never does.

Here’s the video on YouTube to set up Call Funnel Metrics in Google.

Select the “Create” option from inside your Google Ads Manager, and follow the prompts. It’s easy to create YouTube ads campaigns.

Then, select the video campaign type:


For further details Visit our YouTube Channel to follow the setup video and insider tips. Audience targeting is essential to get right.

>> TIPS on Choosing Bidding Strategies:

tCPA: With Target CPA (cost-per-action), you set the average amount you’re willing to pay for a conversion. From the Target CPA you set, Google will optimize bids to help get as many conversions as possible. Some conversions may cost more or less than your target.

Maximize Conversions: Google Ads will automatically set your bids to help you get the most conversions within your budget. Note: 95% of the time, we choose this setting to begin building history, traffic and collect data. Based on results and timelines, we’ll switch over to tCPA bidding and continue testing.

Insights from Analytics: Views, Clicks, and More

Understanding YouTube’s analytics is like having a secret weapon. It’s like having x-ray vision, but instead of seeing through walls, you see who’s (privacy policy compliant) watching your ads and how they found them. With lightning speed, you can adjust your ad to ensure it’s a hit and not a miss.

  • Views: It’s like a popularity contest, but instead of high school, it’s on YouTube. The more views, the more people are watching your ad. It’s like being the cool kid in school, but without the acne.
  • Clicks: Clicks are like high-fives for your ad. They show that people are interested enough to take action. It’s like getting a thumbs up from your audience, but without the risk of a thumb cramp.
  • Audience Retention: This metric tells you when people start losing interest in your ad. It’s like a reality check, but instead of a mirror, it’s YouTube telling you to step up your game.

Customize Columns in Google Ads. Here is a selection, including additional sub-items below headers (found on your campaign, ad group and ads level – “Columns” icon):


Analyzing these figures is like being a sleuth, yet rather than tackling criminal acts, you’re attempting to fathom why your advertisement isn’t producing the results that you were expecting. It’s like being a detective, but with less trench coats and more data.

For Advanced Users: Inside the Google ads manager, you can customize columns and results that fit your business. For example, in a traditional lead to application to booking/scheduling funnel experience, you can customize columns to see performance metrics directly from Google.

google-ads-custom-columns-coachingGoogle Ads Manager – Custom Columns – Coaching Funnel Settings (Formulas excluded)

Maximizing Impact While Minimizing Costs

To maximize your ad campaign’s success and scaling with video marketing, you need to be savvy with your spending. It’s like being a budgeting guru, but instead of spreadsheets, it’s leveraging YouTube ads. You only pay when someone interacts with your ad, so make it so irresistible that they can’t resist clicking.

It’s like a magic trick, but instead of pulling a rabbit out of a hat, you’re pulling in customers and clients.

And don’t forget about targeting options.

It’s like having a secret weapon, but instead of lasers, it’s YouTube’s demographic groups, keywords and interests. You can strategically place your ad in front of the right people, like a ninja targeting its enemies.

It’s like hitting the bullseye every time, while staying in control of your environment.

Oh, and testing different versions of your ad is like being a mad scientist, but instead of creating monsters, you’re creating the perfect ad for longevity (We have ads that have run un-touched for more than 6 months!) It’s like mixing potions, but instead of turning people into frogs, you’re turning them into loyal customers and clients. So experiment away.

In a nutshell, optimizing your YouTube ad campaign is like being a master chef, but instead of cooking food, you’re cooking up success. So grab your apron and get ready to serve up some amazing results.

And, don’t forget to create YouTube Ads with different introductory “hooks” to get the attention of your viewer. (More on that on our YouTube Channel, see bottom of post).

Key Takeaway: 

Optimizing your YouTube ad campaign is like conducting a science experiment, using analytics to make changes and improve results. By analyzing metrics such as views, clicks, conversions and audience retention, you can understand how well your ads are performing and make adjustments accordingly. Additionally, maximizing impact while minimizing costs involves creating irresistible ads that encourage interaction and strategically targeting the right audience. Testing different versions of your ad allows for experimentation and improvement over time.

In summary, optimizing your YouTube ad campaign requires being smart with your budget, measuring results, utilizing targeting options effectively, and constantly testing to create the perfect ad(s) for success (aka ‘leads’, ‘appointments’, ‘bookings’, ‘sales’).

FAQs in Relation to Youtube Ads for Beginners

Other video platforms or social media networks

Others experiences or opinions 

How to Advertise on YouTube for Beginners

To advertise on YouTube, create a Google Ads account, set your budget, target your audience, and choose the type of ad you want to run.

Then, design your ad content and launch your campaign.

IMPORTANT: Make sure to set up your conversion points first via the “Tools/Settings” -> “Measurement” -> “Conversions” from your Google ads toolbar (top, right). That includes Google Analytics 4 measurements and tracking.

Popular Topics for YouTube Ads

YouTube ads can cover a wide range of topics, from brand awareness campaigns to product launches and tutorials.

It all depends on your marketing goals and the demographics you’re targeting.

If you have questions, we use our proven 3-layered approach to video creation. Contact us below for more information.

Checklist: Step-by-Step Guide to Advertising on YouTube

To advertise on YouTube, follow these steps:

  • create a Google Ads (Adwords) account
  • set up your conversion goals and analytics
  • define your objectives
  • create / select your target audience and locations
  • decide on your budgeting options and bid strategy
  • choose an appropriate ad format (like TrueView in-stream ads)
  • upload your creative assets.


This blog post has covered major areas you need to know about YouTube ads for beginners. From understanding the power of YouTube advertising to tapping into a massive audience, slicing off your market segment from within the larger audience pool.

With viewer-controlled TrueView ads, you can engage users effectively and build brand awareness through strategic ad placement and partnerships with popular videos.

Create relatable content in your ads to foster consumer-brand connections and establish a strong presence on the platform.

Optimize your first YouTube ad campaign by analyzing insights from analytics, your backend (e-commerce platform / CRM) and maximizing impact while minimizing costs for successful results.

If you want help to launch and scale your YouTube ads, request a quote from our expert YouTube advertising team here.


We haven’t covered the newer Google Performance Max in this article. Performance Max is a (new) goal-based campaign type that allows performance advertisers to access all of their Google Ads inventory from a single campaign. This includes presenting brand/static images, YouTube videos, ads that can be used in display ads, discovery ads, gmail ads, traditional search and maps.

Visit our YouTube channel to learn more and why you should NOT use PMAX as your starter campaigns for YouTube Advertising and marketing.

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Mastering Google YouTube Ads and Omni-Channel Marketing – The Role of ROAS, Attribution, and MER

When managing your Google YouTube ads (and other popular ad platforms, like Meta Ads), understanding the balance between your spending and the return you’re getting is crucial. 

While the Return on Ad Spend (ROAS) is the most common formula used, the efficiency of your marketing as a whole can be better represented by another metric: the Marketing Efficiency Ratio (MER). 

Combined with sophisticated third-party attribution tools such as Wicked Reports, these calculations can offer you a clearer understanding of your ad campaigns’ true profitability.

Breaking Down ROAS and MER

ROAS is a simple equation that divides the revenue generated from an ad by the cost of that ad:

ROAS = (Revenue from Ad) / (Cost of Ad)

So, if you’ve spent $1000 on an ad and generated $5000, your ROAS is 5.

This means you’re earning $5 for every $1 you spend, suggesting a profitable ad campaign.

While ROAS is a valuable tool, it provides a narrow view of your marketing campaign’s performance.

This is where the Marketing Efficiency Ratio (MER) comes in. 

mer_vs_roasMER measures your total revenue in relation to your total marketing spend, giving you a broader understanding of your marketing efforts.

Calculating your MER can help optimize your budget allocation and improve your overall marketing strategy.

Implementing Attribution and Tracking Conversions

However, things can get complicated when you incorporate a multi-touch attribution model into your calculations. 

This model tracks and credits all marketing touchpoints that lead to a conversion, not just the final interaction. 

This is crucial in today’s omnichannel marketing world, where customers interact with your brand across multiple platforms before making a purchase.

SCENARIO: We often see complex patterns of user behavior. For example: A visitor watches your YouTube Ad (or parts of it). Later, they Google search your brand name and visit your website. In turn, they sign up for your email list. Finally, they purchase from one of your email sequences over time, a few weeks later, or even several months after the fact. If a subscription model, they are charged on future intervals and should be tracked.

Google partially solves this dilemma of tracking. Big G can implement attribution and track sales from offline conversions and over extended periods (30 days, standard):

  1. Google’s Attribution Models: Google Ads offers several attribution models such as last click, first click, linear, time decay, and data-driven. These can help you understand each touchpoint’s contribution to the conversion path.
  2. Google Analytics Multi-Channel Funnels: This tool helps visualize your customers’ conversion path, demonstrating how your marketing channels (organic, paid, social, email, etc.) collaborate to create conversions.
  3. Offline Conversion Tracking: This allows you to measure which ads lead to valuable offline actions, such as phone calls or in-store visits. You can import this data back into Google Ads to determine which campaigns drive the most profitable offline conversions.
  4. Customer Relationship Management (CRM) Software: By integrating your CRM with Google Ads, you can track long-term interactions and attribute conversions to the right marketing activities.
  5. Google’s Customer Match: This tool lets you use your online and offline data to reconnect with your customers across Google services.
  6. Google Analytics 4 Attribution: GA4 provides different attribution models. An attribution model can be a rule, a set of rules, or a data-driven algorithm that determines how credit for conversions is assigned to touchpoints on conversion paths.There are three types of attribution models available in GA4. Learn more about GA4 migration here.

Leverage Third-party Tools Like Wicked Reports

To bolster your understanding of your ad campaigns’ performance, tools like Wicked Reports can provide a deeper analysis of your data. 

Wicked Reports can reconcile your multi-touch attribution data with your long-term customer value data, offering a holistic view of your marketing performance. 

This can help you fine-tune your campaigns, aligning them with your customers’ behaviors and your business goals.

And, as an agency, we now have the proof of the entire “clicks-to-purchase journey” to show our clients and back it up with OrderIDs and customer names.

How Wicked Reports Differs From Google

Wicked Reports and Google Ads are both powerful tools that marketers can use to analyze and optimize their advertising campaigns. 

However, they approach attribution differently and offer distinct advantages. 

Here’s why you might find Wicked Reports to be more advantageous for tracking attribution:

  1. Long-term Attribution: Wicked Reports tracks customers over their entire lifetime, giving you insights into long-term ROI. Google Ads primarily focuses on a 30-day conversion window, which may not capture the full value of customer interactions over time.
  2. Cross-Platform Attribution: While Google Ads provides attribution information for ads within its ecosystem (Google Search, YouTube, etc.), Wicked Reports can track attribution across multiple platforms, including Facebook, Instagram, email campaigns, TikTok, Snapchat and more. This allows for a more comprehensive view of your marketing efforts.
  3. Sales-Based Attribution: Wicked Reports uses actual sales data (first party data) for attribution, giving you accurate ROI metrics. Google Ads often bases attribution on clicks or conversions, which doesn’t necessarily translate to actual revenue.
  4. Customer Journey Insight: Wicked Reports provides detailed information about the customer journey, showing how different touchpoints influence a customer’s decision to purchase. While Google Ads does offer some insights into the customer journey, it can be limited to interactions within the Google ecosystem.
  5. Cohort Analysis: Wicked Reports enables cohort analysis, allowing you to group customers based on their behaviors and evaluate the effectiveness of your campaigns over time. Google Ads doesn’t offer this level of analysis natively.
  6. Multi-touch Attribution: While Google Ads does offer several attribution models, Wicked Reports’ strength lies in its robust multi-touch attribution model that accurately assigns credit to each touchpoint in the customer’s journey, giving a more nuanced understanding of your marketing funnel.
  7. Funnel Vision Empowerment: This report provides a visual representation of the funnel and allows businesses to identify areas for improvement by tracking conversion rates at each stage. With the FunnelVision report, eCom brands can see which campaigns drive the most sales and adjust their marketing budgets accordingly. This allows them to allocate their resources effectively and optimize their campaigns to increase their ROI.

While Google Ads offers useful insights and tools for campaign optimization within the Google network, Wicked Reports provides a more holistic, revenue-focused, and cross-platform view of your marketing performance. 

It helps marketers understand how different marketing activities contribute to the bottom line over the lifetime of a customer, which can be crucial for strategic decision-making.


In conclusion, to ensure successful attribution: Maintain a consistent tracking strategy, regularly monitor and interpret your data, campaigns, and continuously optimize your marketing efforts based on your findings and actual data.

By understanding the customer journey, you can make more informed decisions on your marketing budget allocation for maximum impact. 

Combine the power of ROAS, MER, and third-party multi-touch marketing attribution software like Wicked Reports to amplify your YouTube, Google, Facebook, Tiktok, Pinterest, Snapchat, LinkedIn ad success.

Learn more here.


The Best Way To Choose Keywords for PPC

What Is the Best Way To Choose Keywords for PPC?

Every effective digital marketing plan has to include a solid (positive return) pay-per-click campaign. PPC works well with SEO and content marketing to make sure your company is seen by the right people.

You drive traffic with carefully picked search terms, but what is the best way to choose keywords for PPC ads?

Here’s a quick guide to get you started.

The Best Way To Choose Keywords for PPC

To start creating a strategy for this type of marketing, you need to understand what it is.

With a pay-per-click ad, the advertiser pays a fee each time a user clicks the ad.

PPC is typically used to direct traffic to websites to encourage sales and conversions.

There are several platforms that offer PPC advertising, including Google Ads, Bing Ads, LinkedIn Ads and Facebook Ads.

These platforms allow advertisers to create ads, set a budget, and target their ads to specific users based on demographics, interests, and other factors.

PPC advertising can be a cost-effective way for businesses to reach their target audience, allowing them to bid on keywords or phrases that are relevant to their products or services.

When users search for the selected keywords or phrases, the advertiser’s ad may show up in the search results.

Since your ad placement and budget will depend on your keywords, it’s easy to see why you need a strategy to choose the right keywords.

There are several factors to consider when choosing the best keywords for your needs.


The best way to choose keywords for PPC ads is to think of words and phrases relevant to your business and the products or services you offer.

This helps ensure that your ads are shown to users who are interested in what you have to offer. There are many tools available to jumpstart this process, including the Google Keyword Planner.

Search Volume

Consider the number of people who are searching for the keywords you are targeting.

Keywords with higher search volume may be more competitive, but they may also be more effective in driving traffic to your website. Between transactional, informational and navigational search, you’ll want to balance brand awareness searches vs. sales/value based ones.


Research the cost-per-click for the keywords you are considering.

Keywords with a higher CPC may be more expensive, but they may also be more effective in generating leads or sales.

Quality Score

Google Ads (AdWords), among many variables to determine quality – uses a ‘Quality Score’ metric to determine the relevance and effectiveness of your ads, keywords and landing pages (your content and congruence to the ad).

Keywords with a high Quality Score may have a lower CPC and may be more likely to appear in a higher position in the search results.

Note: QS is only part of the equation as mentioned, so make sure to have complete insights to all your metrics and important touch points (e.g. ‘conversions’ and ‘sales metrics’).

When picking the keywords you will target, you need to balance all of these factors.

Having great keywords that are very relevant but cost too much may limit how far your budget goes, while using cheap keywords that aren’t high-quality will hurt your traffic and sales.

Learn the Best Way To Choose Keywords for PPC and Start Growing

PPC marketing can be a great asset to your company’s growth plan if you do it the right way.

When you aren’t sure about the best way to choose keywords for PPC, there is help: At Chaosmap we are focused on helping you increase traffic in a way that supports building revenue.

Reach out today and find the keywords that are worth your money.


Adwords Analytics Budget Digital Advertising Analytics PPC

The Only 4 Metrics You Need For Profitable Advertising With Facebook & Google

Online marketing is a must for any business looking for serious growth today.

Your company can’t survive without advertising in a market where your competitors are spending multiple thousands of dollars on ads each month.


Topping their advertising costs isn’t necessarily the smartest of solutions.

Your marketing can yield better results if you spend your budget where it serves you best. With that, you’ll make up for all your costs, attract better clients, and emerge profitable.

That’s why you must calibrate your marketing costs to ensure that your investments will succeed.

So that makes you wonder…

What metrics should I focus on to ensure profitable marketing?

1- Return On Ad Spend (ROAS)

ROAS is an essential metric that allows you to evaluate your ad spend and manage your budget more effectively.

It measures the expected returns for each dollar you spend on an ad. You’ll then be able to choose the best performing ads and spend more money on them.

You can easily calculate ROAS using the following formula:

ROAS=Revenue x Cost

For example:

If you spend $1000 and get $3000 in return, your ROAS is 3. The result means that — for each dollar you spend, you make three dollars back.

NOTE: When you are starting a brand new campaign (or existing), it’s necessary to also review your Average Order Value (AOV) and Cost Per Acquisition (CPA). Understanding these numbers will help track the “health” of your business and advertising overall. You’ll know that a CPA less than AOV is highly beneficial!

2- Return On Investement (ROI)

ROI is a financial metric used in many areas of business. It’s a ratio similar to ROAS, which also helps you assess your marketing campaigns’ success.


Unlike ROAS, ROI deals with the overall costs of marketing and business. And it does that by looking at the net profit instead of revenue.

Here’s how to calculate the ROI for your campaigns:

ROI=Net Profit x Costs

For example:

A starter business has made $25000 in revenue in its’ first month. It spent $8000 on ads but also has additional financial costs of 18000$.

By running the calculations, we find:

(25000 – (8000+18000)) / (8000+18000) x 100 = -1000/26000 x 100 = -3.84%

The company has an ROI of -3.84, which means that it’s still losing money.

This is why you need both ROAS and ROI to better evaluate your success.

3- Customer Acquisition Cost (CAC)

CAC is the average cost a business pays to acquire a new customer. It’s a unique measure that can help you increase your profit margins significantly and dominate more markets.

Customer acquisition cost is calculated using the following formula:

CAC=(Marketing + Advertising expenses) / New Customers

For example:

A business spends $9000 (marketing expenses) each month to acquire new customers. That includes employer salaries, ad spend, paying for third-party tools, etc… The company acquired 150 new customers during that month.

In this case:

CAC = 9000 / 150 = $60

The business is spending $60 to acquire new customers, which can be either good or bad based on many factors.

But, the general rule of thumb is this:

A lower CAC allows more flexibility with your marketing budget as you can convert a lot more customers for lower prices.

4- Customer Lifetime Value (CLTV)

CLTV is a forecast of the total amount of money a customer will spend on your business. It tells you how valuable a client is throughout their whole relationship with your brand.

Calculating CLTV depends on your business plan and revenue model.

To calculate this measure, you must estimate the following :

  • Average sale value
  • Average number of transactions per customer
  • Average customer lifespan
  • Profit margins

Your formula should look something like this:

CLTV=average sale value X number of transactions X customer lifespan X profit margins

Calculating CLTV allows you to manage your ad campaigns more efficiently. You’ll have tangible numbers to compare to your customer acquisition costs.

You can then work on increasing CLTV and decrease CAC to boost profits and reduce costs.

Ready to Get Started With Paid Advertising?

Chaosmap has a dedicated team of digital marketing experts and professional advertisers at your service. We’ll help turn your company into a profitable business with paid advertising and PPC.

Take a quick look at our Pay Per Click services to learn more about our process. Contact us today to get a quote for your project.

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SEMrush for Competitive Research: Best 3 Tools to Run Your Paid Ads

Competitive research is the first step to growing your business with paid ads. It allows you to learn new ways to serve your target audience and avoid your competitors’ mistakes. And it helps you identify the gaps in your marketing strategies.

SEMrush is one of the best options when it comes to competitor research for your paid advertising. It offers a wide variety of features and tools to guide you through each step of the process.

In this post, we’ll share with you the top three tools on SEMrush and how to use them to run your paid ads.

Let’s get started.

1 – Domain Overview

This tool is crucial for competitive research due to the importance of the data it provides. If you use it right, you’ll save yourself thousands of dollars in paid ads over the years.

Domain Overview

Domain Overview gives you detailed reports of your competitors’ sites and online presence. It allows you to check their organic and paid traffic, learn more about their paid ads strategies, and analyze their backlink profiles.

All you have to do is enter a competitor’s domain and let the tool do its magic.

Domain Overview Analysis

All metrics are split into smaller sections to ease the process for you. And each section offers reports that go into a lot more detail to help you gain valuable insights.

Domain Overview Dashboard and Reports

But here’s the best part:

The data is presented on a beginner-friendly dashboard. The user interface makes it easy for anyone to understand the metrics and run comparisons.

2 – Advertising Research

Running a successful ad campaign requires a lot of trial and error. And that can exhaust your budget quickly.


SEMrush has developed great tools to help you overcome that, and save you time as well.

Advertising Research is a set of tools that allows you to run a full analysis of your biggest paid search competitors and generate complete reports.

Advertising Research Reports

Each report helps attain in-depth knowledge about your competitors and the techniques they use. You’ll gain access to their best keywords and bids, live ads, advertising strategy, and a lot more.

Other great features in this tool are “Positions” and “Position changes,” which allows you to monitor how your competition is behaving.

You can see position changes in your competitors’ ads in the SERPs. That way, you’ll know what changes they’re making on their PPC strategies.

SEMrush Positions

More importantly:

You’ll discover new competitors you never knew existed. And you’ll get access to data surrounding their highest performing ads. You can also monitor their landing pages and ad copies to see which versions are working best to model in your campaigns.

3 – Ad Builder

Writing an ad copy that works can be time-consuming and daunting for many advertisers. It takes a lot of experience and testing to get to the perfect version.


What if we told you could use your competitors’ highest performing copies and model from them as your own?

Ad Builder was created just for that.

Ad Builder Tool

This tool lets you use your competitors’ ad templates in your campaigns. You can insert dynamic keywords from your list and not have to worry about negative or low-performing keywords.

Ad Builcer dashboard and Copies

You’ll also be able to track each template to see how it performs using a built-in feature.

Better still:

You can integrate the whole thing into your Adwords editor within a few clicks. All you have to do is export the work into a CSV file and upload it to your Adwords account.

Need Help Growing Your Business With PPC?

Paid ads can work wonders and help you scale your business fast. But the only way to do that is by approaching PPC with the right set of skills and experience.

Lucky for you, that’s precisely what we offer here at ChaosMap!

Check out our Pay Per Click services to learn more about our work or contact us so we can discuss your project in more detail.

Adwords Budget Campaigns Conversion

7 Ways to Save Money on Google Ads

Google Ads is an excellent platform for lots of businesses to drive more sales and grow. But unfortunately, most advertisers don’t know how to use it to get results at lower costs.

If you find yourself spending a lot of money on Google Ads and getting little to no results, this is for you.

In this guide, you’ll learn seven easy ways to save money on Google Ads by driving higher conversions at a lower CPC.

Let’s get started!

1- Improve Your Ad Copy

Your ad copy is the first thing your target audience interacts with before working with you. It’s where all the selling happens. Creating a great offer and targeting the right audience are essential.


None of that matters if you don’t have a persuasive copy to convert leads into customers.

You should always give users a reason to click on your ad. And keep your paragraphs short and on-point while including relevant keywords.

Also, be sure to use a clear call-to-action to boost click-through rates.

2- Increase Your Quality Score

Quality Score is a 1-10 rating that Google gives to each keyword in your ad groups. It reflects ad performance and how good a keyword is, based on the following three factors:

  • Expected CTR
  • Ad Relevance
  • Landing Page Experience

A higher Quality Score means lower CPC and better-positioned ads for your campaign, both of which are factors that help drive higher-quality leads to your offer.

To increase your Quality Score:

Make sure your keywords are super-specific to your different ad groups. And always delete any unwanted terms or keywords from your campaigns.

You must also match the content on your different landing pages to each ad group in your campaign.

More importantly:

Try to improve the user experience on each landing page by improving page speed, creating a clear hierarchy, and writing strong CTAs that convert.

3- Use Location Targeting

Do you own a small business where you only serve customers locally? Or perhaps you sell products that you only ship to specific locations?

If you’re targeting a global audience for such offers, it’s clear why your conversion rates are so low. And no matter how great your ad is or how big your budget is, you’ll always be losing money.

Location targeting

Before starting any ad campaign, you need to be smart about your geographic targeting preferences.

Identify where your target audience is located. Then, update your targeting preferences to those specific areas.

4- Add Negative Keywords

Negative keywords are the words and phrases you don’t want your ads to be displayed for. They exist to help you save money by not showing your offers to irrelevant audiences.

For example:

Add negative keywords

If you’re selling brand new laptops, you don’t want your ads to appear to someone searching for “used laptops.”

So, you need to include “used” in your list of negative keywords.

To give you some examples, here are some words you can add to your list:

  • Free
  • Cheap
  • Discount
  • Reddit
  • Youtube
  • Quora
  • Class
  • Book
  • Courses
  • Review
  • Picture
  • Price

Your list of negative keywords depends on your industry, company, products, and target audience.

So, you can only build one of your own by gaining more knowledge and experience from running ads.

5- Bid Smartly

What most advertisers do when trying to save money is keep their CPC on the lower end of the bidding range. But that gives them horrible ad placements, lower impressions, and even lower conversions.

Others might approach this by bidding much higher to dominate the results pages and target a better audience. However, they might be bidding against themselves and leaving a lot of money on the table.

The best way to go about this is to test, learn, and iterate.

Try out different CPC bids for various keywords, then identify which ones are bringing the best ROI.


Go for high-intent keywords first instead of high volume. That works even if it means adding keywords to your list with only a few dozen searches per month.

6- Leverage A/B Testing

Marketing isn’t an exact science for anyone of us to be able to tell what’s going to work for sure.

So, it’s always a good approach to test out different ads before settling on a final one for any of your offers.

A/B testing

Make small changes to your ads and let them run for a while to see which ones perform best. You should also optimize your landing pages and test out different layouts and language.

As you start to gather more data, you’ll learn a lot about your target audience and which language resonates the most with them.

7- Create an Ad Schedule

Once you’ve been running ads for a few months, you’ll have some data to focus on what’s already working.

Google will generate detailed reports for you to know during which days or hours your audience is converting best.


You can adjust your ad to only be visible during peak times and easily save money on Google Ads.

Wrapping it up

Looking to take your business to the next level with online / paid ads and marketing? We have a team of professionals ready to help you!

Check out our digital marketing services and get a quote for your project today.


How a Google Quality Score Can Help You Predict The Future of Leads Flow

Google Search. Quality Scores. Your (Business) Future?

How can you peer into, and predict a different (better) future state for your business lead flow by improving the simple, yet powerful Quality Score (QS) on the Google Ad networks?

It’s true. The impact of a positive, high number (1 through 10) Quality Score on your keywords association inside your ad groups in Google Adwords can heavily impact your business in either direction. (And, even your mind, if you worry too much about it…)

We’ll look at the important QS attribute (yes, it’s not a metric) in this post.


A 100% Conversion Rate Using A Little Used Optimization Trick Possible?

When creating, managing and optimizing your marketing campaigns online, there is only one metric that matters to your “boss” and you … It’s the conversion.

As the common example goes: If 100 visitors come to your web page and 1% convert (take action on that page and tracked by you) – you’ll have 1 positive human interaction. This person went from a prospect to a lead (sales cycle), or an actual sale (ecommerce).

What expectations do we have?

Depending on your marketing campaign, industry and many other variables, questions get raised about “expected conversion rates on a landing page”, “industry conversion rate averages” and the like. While interesting, there is nothing like actual results for YOUR business to determine success.

Do you care about naming?

Terms like Landing Page Optimization (LPO), Conversation Rate Optimization (CRO), PPC Management, and their use are important to improve on a process already place, but when you show a 100% conversion (100 out of a 100) – nobody cares about industry acronyms, they just want to know how you did it.

We’ll talk about a big optimization trick today. It’s simpler than you might think.