We get this question a lot — and the real answer is: “it depends.”
The best way that I can possibly explain search engine marketing, in general, has to do with your ability to properly “tweak” the dials to optimize for your desired result.
Understanding that more clicks = more cost, it’s best to describe the process is visually in this format:
Allow me to explain in short:
- Targeting Area
- Geotargeting to an acute area of focus will limit the search volumes, keeping cost/clicks down.
- Opening it up to more of a wide area of focus will allow for a higher number of impressions, clicks and cost.
- Max Daily Budget
- If your max daily budget is low, Google’s algorithm doesn’t give you “preferential treatment,” which means that your ads will show in off-peak times, or in highly competitive time zones with poor ad positioning.
- If your max daily budget is high, you’re signaling to Google that you’re capable and willing to spend advertising dollars on your campaign, thereby providing you with a “preferential treatment” in terms of seeding.
- Max CPC Bid
- If your max CPC bid is low, you’ll receive poor ad position placements, which will translate to less clicks and less conversions.
- By maximizing your CPC bid, you can (over time) back off once you’ve “earned clout” by proving that your ads are relevant to certain keywords, but a high CPC amount gives you a chance to compete with a new campaign (although the costs will be high at first).
- Keyword Specificity
- The more “general” your keywords, the higher number of visitors you will receive to your website, but your conversion rate will drop, and the visitor quality will be more “shopper” than buyer. That’s not to say that the net result won’t be a higher amount of revenue, just that you’re hoping that you can find buyers sprinkled into the mixture of shoppers that you’re reaching, and your cost per acquisition should rise dramatically.
- The more specific your keywords are, the inverse relationship will be from the above statement. Ideally, you’ve got a mixture of these keyword types, in their own ad groups, with their own budget requirements.
- Ad Creative Messaging
- If you’re attracting more “shopper” audiences in an attempt to attract more visitors, your call to action will be more passive in nature (i.e. “Learn more now”). Your conversion rate should take a hit with the increase in traffic, but could overall net better results than if you optimized for lower traffic volumes.
- If you want to attract more “buyers,” your ad creative will be written in such a way that pre-qualifies the traffic (i.e., “Become a member now with a $25 or higher donation”). Your conversion rate should improve dramatically, but you’ll be sending far less traffic to your landing page.
Does this make sense? I hope so.