I’m very happy to say that our Search Marketing Consultant, Sam passed the Google AdWords Professional Exam on Friday.

We’re very proud that he’s completed it, and with an impressive score too!

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*How do you work out how much you can afford for each click

Your break-even cost per click is :

Conversion Rate x Profit

E.g. Conversion rate of 14% and a profit per sale of £15
You have a maximum of £2.10 per click to spend to break even.

If you don’t actually sell online, you can still attach a rough figure to this.
Work out how much each lead you gain from your website is worth and use that to determine how much you should be spending on your pay-per-click.

If you know that you can convert 10% of your website leads for an average transaction profit of £500, you can work out your break-even point as follows:

Break-even point = website conversion rate x 10% x £500

For a keyword that achieves a visitor-to-lead conversion rate of 2%, and you have an average profit of £500 per transaction, your break-even point will be:
2% x 10% x £500 = £1 per click

i.e. you will be in profit if you have an overall average cost per click less than £1.

But make sure you take the cost of your time (or agency management time) into account.

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This way, if for example you were promoting Fake Bake tanning products, and were bidding for the keyword “Fake Bake Airbrush Tanning Kit”
You may want to boost your traffic and appear for variations such as “Fake Bake Moisturiser”, “Fake Bake” or “Fake Tan”. You would order your keywords with staggered Cost Per Click (CPC) budgets, something like this:

Exact – 0.50
Phrase – 0.30
Broad – 0.05

And perhaps add in some negative keywords like “home bake” “home baking” “tan leather” “fake boobs”… you get the point!

Bear in mind that your advert will be shown more regularly if you achieve a higher click through rate (CTR), so although your bid staggering will help distribute your advertising budget to the most relevant terms, it’s not fool proof, and if your broad match is making you show up for “fake bake tanning products ruined my marriage”, you’re likely to get a high CTR due to limited competition.

Once you’ve set this up, don’t think you can leave it to fester – you have to be very careful with broad match, and this match type may or may not work for your situation.

Keep your eye on terms that you’re adverts are being show for and keep adding to your negative keyword list. This way you can continually improve your conversion rates, reduce your cost per conversion and improve your return on investment.

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Well, as I was contemplating what match types to delete, add and test together in Google AdWords, I came upon a match type that I’ve not exploited enough.

Embedded match gives you the opportunity to display your advert for a broader range and every variation of a keyword, except for the keyword itself.

Embedded match in action

If you are promoting roof insulation for example, you could use the negative embedded match -[insulation]. So that you will show adverts for keywords such as “roof insulation”, “loft insulation”, etc.

So you’re showing for long tail keyword phrases relevant to your key product of insulation, but you benefit from a lower level of competition, lower cost per click, higher variation of keywords and an end user that is further down the purchase process.

It’s also a good tool to use at the start of a campaign for discovering new good and bad keywords that you can ban using negative match or add these keyphrases in their own right as phrase or exact match.

How to use embedded match

So as not to give away all my secrets, we’ll use the term ‘hamster’.

• Add the negative exact keyword -[hamster]
• Add the broad match keyword “hamster”

In this way, you will appear for ‘hamster accessories’, ‘hamster food’, ‘hamster wheels’, and ‘how to stuff a hamster’, but crucially not the vague and potentially unprofitable term ‘hamster’.

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When you have a number of keywords in your ad group, sometimes it’s handy to use the keyword insertion method when creating your adverts.

This is where you use the text {keyword:default text} to pull in the keyword that a user types to triggers the advert.

This means you can highly relevant and targeted adverts without having to write individual adverts for every one of the keywords you’re bidding on.

Default Pay Per Click Advert Headline

You define your default text in the case where the user searches for a phrase that is too long to fit in your advert.  For example in one of the adverts I’m testing, I’ve used the text “Blue Ultimatt® Emulsion” as the alternative, so if someone types “where can I buy blue emulsion paint” it will display the following advert:

Pay Per Click Advert Keyword Insertion

However when you use the {keyword:default text} in your title or advert, and the text is not too long, it will show in the following format:

As you can see above, the text is all lower case… and not particularly inviting.

Capitalisation of keywords in your advert

What I found out today that was quite useful is that you can change the capitalisation of the keywords use in your advert, so you can display an advert like this instead:

Table of PPC keyword capitalisation

I’ve added a table of capitalisation variations that you can use when writing your pay per click adverts here:

* I wouldn’t advise all caps, unless you really want to shout!

When not to use automatic keyword insertion

There are no hard and fast rules for this, but consider the following:

• If your competitors are all using the keyword insertion method for niche terms, you’re advert isn’t going to stand out one bit.  Check the actual results, and see whether your advert looks invitingly relevant or insipidly generic.
• Are your keywords loosely grouped? If you’re trying to automate too much, you may be churning out adverts that may be relevant to the keywords used, but the landing page won’t match.
• Are you bidding on your competitors brand names? if so, your advert may falsely imply that you’re selling their products.  This isn’t good karma, but more importantly, you’re unlikely to make a sale from someone who specifically wants a product you don’t sell.

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Something really useful came up in one of their recent posts about Monetizing Goals. Whenever I’m working on a Pay Per Click campaign, my usual objective is to achieve the highest revenue, with a low cost per conversion, ensuring a good ROI.  And when I’m working on a non-ecommerce site, I aim to achieve the highest number of conversions, and lowest cost per conversion.

However, up until now, I’ve not assigned a monetary goal value to non e-commerce sites.  But with input from clients who have a rough idea of how many enquiries result in sales, and the average value of a sale, we can see a more informed representation of the Return On Investment (ROI) that we achieve.

ROI Revolution suggest that you would divide the average sale by the number of enquiries required to acheive a sale.

The benefit they see is much more information available in the pre-defined reports.  But what I can see as a big advantage is assigning a different monetary value for a different type of enquiry which may achieve a higher average conversion rate (post initial enquiry) and/or higher average sale price.

This gives a higher degree of clarity (albeit estimated), so you have more information to tailor your Pay Per Click spend to achieve a higher ROI.

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