Category: Budget

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

Post author By Jon Rognerud
Post date September 16, 2020

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.

Yet…

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:

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.

But…

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:

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:

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:

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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6 Must-Have Tools For a Successful Google Ads Campaign

Post author By Jon Rognerud
Post date June 17, 2020

Any craft in this world requires tools to make the job easy.

And PPC is no different!

With the right set of tools, you can automate most of the process. You’ll find the best keywords, create ads quickly, research your competitors, and drive your costs down.

We’ve gathered five tools to help you gain competitive advantage and run successful Google Ads campaigns.

Let’s dive in.

1- Google Keyword Planner

Keyword research is all about identifying high-volume low-cost keywords for your campaigns.

But…

You can’t randomly add keywords to your campaign and cross your fingers it will work.

That’s a blind campaign.

Instead, you need a keyword research tool through in-depth research, and that’s where Google Keyword Planner comes into play.

Google Keyword Planner allows you to generate hundreds of relevant keywords for your campaigns — for free.

On top of that:

It will generate forecasts to help you gain valuable insights about how your keywords are likely to perform.

2- Ads Audit Report

This one is the fruit of our long years of hard work and experience in PPC marketing. And it’s an excellent tool for auditing Google Ads accounts quickly and easily.

Ads Audit Report works for advertisers of all sizes, from consultants to big agencies. It allows access to client accounts so you can review key data points and detect any new trends.

Here are the most attractive features of our tool:

Trends over time identification (charts & numbers)
- Clicks, impressions, spend, CTR, avg. CPC
Data breakdowns by ad platform
- Spend, Impressions, Clicks, Conversions, CPA & avg. CPC
Top performing keywords analysis
- Keyword cloud
- Table breakdown (keyword, spend, impressions, clicks, conversions, CPA, CPC)
Top-performing ads inspection
- Ad copy
- Landing page
- KPI’s
Period comparison reports with specific date ranges

But here’s the impressive part:

While creating this tool, we made sure to incorporate our value-first philosophy into the process.

That’s why we developed distinct features to allow you to make recommendations for your clients on how they can improve.

You can efficiently identify wins and losses and focus on what’s working. And with that, you’ll help them see real changes in their business as early as possible.

Want to try Ads Audit Report for free today? Sign up for a free account and get up to 5 reports.

3- SEMrush

SEMrush is a campaign management software that helps advertisers boost their online visibility through advanced marketing analytics.

The platform is famous for its advanced SEO tools. Yet, it also has a powerful PPC side that can transform your results significantly.

SEMrush offers great competitor analysis options.

You can use it to find out more about how your competitors run their ads. For instance, you’ll have the option to see their list of keywords and how they’re performing.

Another amazing feature is the Ad Builder, which allows you to use your competitors’ templates in your ads.

That’s a great option if you want to test different ads but you’re struggling to write a different ad copy for each one.

4- Adalysis

Adalysis is a PPC management software that helps you improve your ads through performance monitoring and testing.

With this powerful tool:

You can oversee ad performance and be alerted whenever there’s an issue with your campaign.

You’ll also be able to run automatic A/B testing for thousands of ad groups to identify losing ads and remove them.

Another unique feature to help you gain great insight is Quality Score Analysis.

You’ll get access to a set of tools and algorithms to guide you towards boosting the quality score of different ads for all your campaigns.

5- Optmyzr

Optmyzr is another amazing PPC tool to help you optimize, monitor, and generate reports for your Google Ads campaigns.

There are lots of amazing features Optmyzr offers to its users.

Here are the ones we find most remarkable:

Identify low performing ads and pause them with a single click
Generate new keyword suggestions based on reports
Test different ad variants easily with tips on how to improve
Inspect and understand the changes happening in your various campaigns
Run audits to improve your overall campaigns after identifying the issues

Optmyzr is built for companies of all sizes. You can work on your own or add as many team members as you want – for no extra charge!

6- Shape.io

Shape.io is a budget management tool that grants you better control over your budgets with advanced tracking and optimization.

The software gives you access to many automated tools to help you save time and manage your ad spend wisely.

For example:

You’ll avoid budget errors and minimize overspend in your PPC campaigns with integrated tools such as AutoPilot.

And:

With Budget Pacer and CruiseControl, you can adjust daily budgets automatically without having to pause your ads for too long.

Need Help Running Your Google Ads Campaign?

PPC is a great way to grow your business and reach more potential customers in no time.

But…

It takes long years of experience to be able to make all the right decisions and spend your budget wisely.

Need growing your business with paid advertising?

Check out our Pay Per Click services or contact us to get a quote for your project today.

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7 Ways to Save Money on Google Ads

Post author By Jon Rognerud
Post date June 11, 2020

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.

But…

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.

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:

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.

Also:

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.

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.

Now:

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.