What is Pay Per Click | PPC | How to Measure ROI For Pay Per Click Advertising

The chances are you’re spending money on Google. Who isn’t? If you’re a business and you’re not spending money on Google, you’re doing something wrong.
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Hey I’m going to share with you how to skyrocket your AdWords ROI. (light bubbly music) The first thing I want to educate you about is SKAG, Single Keyword Ad Group. If you have a hundred keywords in one ad group, what’s going to happen?

You’re ad text isn’t going to be related to all of those keywords. But on the flip side, if you only have a handful or one keyword related to one ad copy, what’s going to happen? That ad copy is going to be so relevant to that keyword, that you’re quality score’s gonna skyrocket, people are going to click on it, you’re going to save money, and you’re going to convert better.

So instead of writing the same ad text for hundreds and hundreds of keywords, write the same ad text for one keyword, or a handful of keywords max. But, ideally, just one keyword. That way, it’s specific each and every single time to the keyword you want to bid on. The second thing I want to teach you about is a landing page optimization.

Pay-Per-Click
Pay-Per-Click

Why does AdWords ROI have to purely be related to your ads? That’s a bunch of bullshit. That’s what everyone thinks, oh we gotta fine tune our ads and keep tweaking and adjusting our bids. And, yes, I’m not saying you don’t have to do that. But, you’re going to cap out on optimizing your ads. Eventually, the real ROI is going to be your landing page, your product that you’re selling, the offering that you’re going to make. So optimize that landing page.

And the way you do that is you install Crazy Egg. With Crazy Egg, it’ll show you how far people scroll down, where they click, they provide you with reports like heat maps. You’ve heard me talk about Crazy Egg tons and tons of times. Of course, I wouldn’t be talking about it if it didn’t benefit you. Plus, I also own the company, so that’s a plus for me as well. But check it out, it’s useful.

Once you have all of that running, you’ll get reports on where people are clicking and engaging in your landing page. Then you’ll want to run A/B test with Crazy Egg and you can do that through the WYSIWYG Editor. Make some tweaks, some changes, and then boom, start running some tests, and you can optimize your conversions.

Because you know what, if you keep paying a dollar per click from AdWords, and in general, you’re only getting one lead or one sale out of a hundred clicks, you’re paying $100 per conversion. But if you can optimize your conversion on your landing page by four times using Crazy Egg, or any other A/B testing tool out there, right, you don’t have to use Crazy Egg.

Now you’re paying $25 per conversion. You see how that’s a drastic difference? And that happens a lot. Countless times. I see it day in and day out. A lot of people just focus on their ad campaigns, and they forget about their landing pages. To do well, you have to do both.

– You’re spending money on Facebook ads and Google AdWords. How do you know if you’re generating ROI? Hey everyone, I’m Neil Patel and today I’m gonna share with you on how you should be measuring the ROI of your paid advertising campaigns.

Sure, Facebook and Google they try to tell you the ROI that you’re getting but you know what? They are wrong. The numbers you’re getting within your Facebook and AdWords accounts usually always show more conversions than you’re really getting. Just check out your products, your e-commerce store, your lead generation.

Whatever you’re trying to get, your leads, I bet you AdWords, Facebook and even Google Analytics show you more conversions than what you’re really getting. You need to be looking in your database. If you’re not really tracking that number, you’re gonna be off because if a lead or customer is wroth 100 bucks to you.

Google is saying that hey, you’re getting 10 customers when only you got five and you’re optimizing your Google spend, you could be losing money and if you’re not tracking it back to your true conversions, you’re gonna be off. Now, in general, the numbers are off not just for you, not just for me, but for almost everyone. So, what do companies do? Well, they double check their metrics.

They know that if their Facebook metrics say that there’s two conversions, they know, let’s say, if the rule of thumb is by half, because that’s what your database is showing, then when Facebook is showing you had 1,000 sales today, then you really only got 500 and that’s okay.

You just need to know how to optimize your spend based on your true conversions. You have to check within your database for the real sales and lead numbers. It’s that simple. There’s no quick, easy solution being like oh, if you use this software, it fixes it or if you do this, it fixes it.

Everyone says hey, try out this solution, or this company but the real true way that I’ve noticed is I look at my database and my bank account. When I can see numbers coming in, that’s how I know I’ve really generated sales. I don’t care to see what a number in a software solution shows me that’s off. I wanna see the real dollars.

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