Scaling Back Your PPC Program? Here’s What You Need to Consider
Scaling down contextual advertising campaigns often occurs when promoting large numbers of products with an insufficient budget. The reason may also be the preparation for rebranding or the launch of a new product line. Brands face a number of challenges in these situations. Let’s take a look at an example.
Let’s say you sell products in the United States and several European countries. In order to avoid wasting the budget, funds were divided into main and secondary advertising campaigns to fulfill the business goals. The total amount was $20 thousand per month for contextual advertising.
You developed and released a unique product to the market and its promotion is now a priority. An amount of $7,000 from the total budget is allocated for this step. Actions like this lead to the understanding that it is necessary to reduce the PPC program to compensate for the loss of funds.
Further in the article, we will take a look at how to avoid a drop in conversion and what actions should be taken to properly shorten the PPC program.
What Does a High Quality Score Indicate?
The Google quality score is a measure of the relevance of an ad from a search engine perspective. If the user finds the product they were looking for by their request, then Google assigns the ad a high score. The higher the score, the better the ad’s ranking and CPC. This will help outflank competitors and improve key performance metrics in the future.
The higher the quality score, the lower the conversion cost. The search engine algorithms are primarily aimed at providing the maximum of useful information to the user. The more accurately the ad meets these requirements, the more carefully the advertising budget is spent. This will help scale the PPC program or invest more money in promoting new in-demand products.
What is a good google quality score? The search engine assigns contextual ads a score from 1 to 10. 10 is the maximum score. An indicator above the average is considered positive for non-branded searches, from 7 points. For brands, it starts from 8 points. With proper optimization of an advertising campaign, it is not so difficult to reach the maximum score.
Campaign revenue is always a priority. Some brands are getting good conversions from a search with a lower than average score. However, this does not happen often, but do not exclude this possibility and constantly analyze the results obtained.
Google’s Quality Score is influenced by three factors:
1. CTR. The higher the CTR, the more often users click through your ads and find them useful. Each business niche has its own CTR. More information in the article – What Is a CTR. Why Is Click-Through-Rate Important?
2. Relevance: A measure of how well the ad content matches the keyword.
3. The quality of the landing page: Evaluating the content that is on the page where the URL from the ad leads. If the user finds useful information, the search engine can give the page a quality score that is above average.
How to Calculate Google Quality Score?
Marketers have been able to decipher the formula a search engine uses to determine the quality of trade ads. The assessment takes into account three main factors:
- Click-through rate.
- Website landing page user experience.
The formula for calculating the quality indicator is as follows:
When analyzing the final result, three sub-factors are taken into account:
How to Improve the Performance of Shopping Ads?
You need to continually work to improve the quality of your trade ads to get the most out of your ad campaign. Therefore, you need to first focus on the following key points:
- Research of the semantic core. Analyze relevant search results by topic and search popularity. Use long tail keywords to help drive more traffic. Read the related article – Long Tail Keywords: Secrets of Increasing Your Search Traffic.
- Segment your key phrases. This will help you more effectively promote multiple ad groups that share the same topic. For more information, see How to Do Keyword Research: A Complete Guide for Beginners.
- Optimize your landing pages. The content contained must be relevant. This is the main condition for increasing conversions and improving user experience. Related article – What Is a Landing Page and What Is It For?
- Stop words. To improve the effectiveness of your campaign, you need to eliminate search searches that waste your budget.
High quality scores for PPC campaigns are achieved through good structuring of keywords, ad content, and landing page. After eliminating irrelevant search terms, the rankings will improve.
Don’t forget to test different trade ad formats. This way you can determine which ones work best. For example, if you have an ad with a lot of impressions but a low click-through rate, it will negatively affect your Quality Score.
How Can I Scale Down My Contextual Campaign Without Risking My Budget?
When a brand conducts remarketing or launches an innovative product, you must reduce the volume of the contextual campaign. Let’s take a look at how to do this with minimal budgetary and efficiency risks.
1. Use less budget or remove secondary campaigns
If there are secondary campaigns, it makes sense to temporarily stop funding them or cut costs. This will not affect the effectiveness of advertising in any way, because they are not so valuable for the business and clearly bring less income.
However, if the secondary directions are quite promising, then it is dangerous to completely remove them. Competitors can take advantage of the situation and capture a certain segment. In this case, it is worth minimizing funding as much as possible, not excluding secondary campaigns from the overall promotion strategy. By doing so, you will continue to generate leads and increase brand awareness.
2. Stop advertising or reduce the budget for promoting certain products
It is important to find out which products can be discontinued. This is another loophole for competitors. If you are trying to conquer new market segments by promoting new products, it is definitely worth taking this step.
As a rule, these are the least promising goods in terms of sales. The main goal of any investment in advertising is to increase the company’s income.
3. Invest only in the most effective ad campaigns
The previous two points led to the logical choice. You want to fund extremely effective campaigns. Typically, they bring in the highest conversion rates for the lowest cost. Although this is obvious, there are also pitfalls.
For example, there is a product that generates the most potential customers. And there is another product with less lead efficiency. Logically, the first option should be preferred. What if it doesn’t bring in as much income as the second one?
In this situation, you need to conduct research among the target audience. Close communication and study of customer preferences will help to make a choice in favor of one of the products. Perhaps a product that generates fewer potential customers increases the company’s awareness in the market. And this is an important investment. In the future, good recognition helps to make a profit with minimal investment.
Rationally define your primary business goals for the brand and the segment.
There is another strategy that we did not specifically highlight as one of the steps to reduce the scale of the PPC campaign. It comes with a lot of risk but some brands use it successfully in practice. This is the termination of trading on non-brand terms. These leads are more expensive than branded leads. Therefore, abbreviations can seem quite tempting.
Advertising with non-branded keywords can accelerate the development of a company in the long term. If the issue of funding is tough, you can temporarily pause such campaigns and further analyze how this affected the effectiveness.
Sometimes campaigns are paused where the bet was originally placed on the name of the brand. This is due to the fact that the promotion for brand searches was carried out using an SEO strategy. In some cases, this may be justified, but such an experiment will typically end in failure. Customers place orders for a specific brand. Therefore, relying solely on organic results is clearly not worth it. Such risks are justified for young companies, which will have to spend much more to increase brand awareness. In this case, it is better to focus on non-branded queries.
Remember that any downsizing of an ad campaign is always risky. If this is a forced measure, it is necessary to increase the quality score of launched ads so as not to disappear from the field of view of the target audience. Analyze any changes in key performance metrics so you can quickly react to them. The faster you can scale your PPC campaigns, the better for your business.