LEARN ON A WHIFF OF SPEND
[A thread] π
[A thread] π
We only really learn Google Ads when we have some skin in the game, but we don't want to lose our shirt in the process.
When we start a new Google Ads campaign we typically bid low and "count impressions".
This helps identify where we can get initial visitors from at lower CPCs.
This helps identify where we can get initial visitors from at lower CPCs.
We only pay for clicks.
If no-one's searching then our ads get no impressions, we get no clicks, and we therefore have no spend.
*** It fails safe ***
If no-one's searching then our ads get no impressions, we get no clicks, and we therefore have no spend.
*** It fails safe ***
If people start clicking our ads , then we may learn for our given bid price:
- What our CPCs are.
- What our ad position is.
- What our impression share is.
This is valuable data we don't get from the Google Keyword Planner.
- What our CPCs are.
- What our ad position is.
- What our impression share is.
This is valuable data we don't get from the Google Keyword Planner.
Data at this stage can give businesses real time market intelligence - for a whiff of spend!
(We can learn a LOT on a $5/day or $10/day budget!)
(We can learn a LOT on a $5/day or $10/day budget!)
You might want to sell blue widgets but find no-one's looking for them.
You might find most people are looking for red widgets but that's super competitive.
Selling green widgets might be your sweet spot.
You might find most people are looking for red widgets but that's super competitive.
Selling green widgets might be your sweet spot.
Maybe you focus your starting budget on green widgets.
We gradually raise bids until we're getting more visitors trickling through the funnel.
We start to learn conversion rates, and try to plug major leaks.
We gradually raise bids until we're getting more visitors trickling through the funnel.
We start to learn conversion rates, and try to plug major leaks.
Each time a leak is plugged, the tap is ratcheted open at the top of the funnel by increasing bids a bit more.
(All the while trying to run at whatever target profit margin the business has.)
(All the while trying to run at whatever target profit margin the business has.)
If we can double conversion rates, weβve instantly doubled sales (which is great), AND weβve also halved our cost-per-acquisition (CPA).
Our profit margin is now too big (yep, Iβve been roasted for that as well), so we can double cost-per-click (CPC) to get back to the previous CPA.
Which will often quadruple volumes.
Which will often quadruple volumes.
In case you didnβt spot that let me say it another way:
Doubling conversion rates can often multiply sales volumes by a factor of 8.
Doubling conversion rates can often multiply sales volumes by a factor of 8.
People think they need to lose a boat-load of money on Google Ads before they can get profitable.
I contend there's ways to be streetsmart about it, and that the biggest benefit of Google Ads is it helps us find out what people want to buy - and how to sell it to them.
I contend there's ways to be streetsmart about it, and that the biggest benefit of Google Ads is it helps us find out what people want to buy - and how to sell it to them.
β’ β’ β’
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