Share This: RSS
November 08, 2013

Study Shows Small Businesses Waste 25% of Their Pay-Per-Click Budget

At a glance, Google’s AdWords is an appealing way to market your business. This pay-per-click (PPC) advertising model allows users the flexibility to set budgets, target specific audiences and quickly drive traffic to their sites. Without AdWords, a business might have to wait months before their organic web traffic turns into a steady stream of conversions.

Due to the apparent ease of use, some small businesses fall into the trap of believing that they can monitor their own AdWords accounts just as efficiently as the pros. According to a new study by Wordstream, Inc., small businesses are unnecessarily wasting 25% of their PPC budget, largely due to strategic and managerial errors.

After studying 500 small and medium-sized companies, WordStream found that many businesses failed to adhere to basic PPC best practices like improving ad relevancy and regularly managing their accounts. Failing to follow best practices can result in hundreds of lost leads and increased costs for small businesses. This 25% inefficiency is illustrated through actual examples of the client industries sampled: 367 lost bed and breakfast inquiries; 569 lost product sales for retailers; 126 lost insurance quotes; 157 lost B2B supplier leads.

So how can a small business better manage their AdWords campaigns? Here are some suggestions from Graphically Speaking to help you get started.

What is your end goal?

The relative ease of setting up an AdWords account can cause some business owners to act before they’ve strategized. Start by considering your ads’ objectives. Are you trying to find leads? Sell a particular product online? Or drive traffic to your site? Clarifying your goals allows you to create more effective and targeted ads.

Take the time to research

In order to make the best use of your advertising budget, you will need to conduct some keyword research. Use Google’s Keyword Planner and explore which search terms will bring the most relevant traffic to your site. Generic keywords can come with pricier bids, so consider using more specific or long tail keywords and exact match or phrase match options.

Limit your keywords…at least at first

It can be tempting to bid on every keyword that might be relevant to your site, but remember that the quality of your keywords affects your costs. The more relevant a keyword is to your site, the less you pay per click. Aim to create a few focused ads with highly important and specific keywords. Once you’ve let your campaigns run for a few days, analyze the collected AdWords data. It should give you a good idea of which campaigns, ads and keywords are resulting in conversions and which will require edits.

Track your conversions

Wordstream found that less than half of the small businesses they surveyed used any conversion tracking on their landing pages. If you don’t know which ads are converting and how much each conversion costs, then you’re shooting in the dark. Unless you’re operating an e-commerce website, determining the value of a conversion can take some research. First determine how many leads it takes to produce a sale. The value of that sale then determines what you are willing to pay for those leads. Now your goal is to get as many leads as possible for less than your target cost per lead.

Be ready to invest your time

Just because AdWords is up and running doesn’t mean that you can “set it, and forget it.” AdWords requires planning and consistent weekly management so that it operates smoothly and efficiently. Be prepared to spend an hour a week going through your campaigns and pausing inefficient keywords, testing advertisements, and adding negative keywords.

Prev article Next article
Share This: RSS

What People Are Saying About Us

What People Are Saying About Us

I absolutely love the new website, congratulations. I’m looking forward to continuing to work with you in the future.  Great job.

- Cloverdale Paint -

This is amazing and thank you again for all of your great work, we love it!

- Mr. Lube -

The site looks fantastic and is a piece to be proud of. Your team worked well with our management team. We would recommend Graphically Speaking in building a quality site.

- Squamish Terminals -

Bottom line... I would not hesitate to endorse Graphically Speaking, without reservation.

- Thomas FX Group Inc. -

Thank you so much, we are so happy with the design, and you nailed it first time. We wanted you to know we are really thrilled.

- PainPro -

You have completely impressed me with the depth of the work.

- Bezdan -

On behalf of the Webtech team, we want to say thank you for your efforts in the launch of our new website, and for helping us meet our rushed deadline.

- Webtech -

Graphically Speaking provides an expertise that never failed to impress. Their skillful team provided a level of direction that was both disciplined and creative. A very tough combination to find when collaborating in today's world.

- British Columbia Pharmacy Association -

Your team has provided us with excellent support in the areas of website strategy, design, and search engine optimization, usability testing and general ongoing project management.

- The Jim Pattison Auto Group -

I want to express my thanks for the amazing work you and your team put in.

- Absolute Software -

I am pleased with the design, UI and insights from the usability testing that has allowed us to develop an award-winning website. Job well done.

- City of Richmond -

I wanted to reach out to you to let you know how happy we are with the results of the work your team has done on our new website. Your team has helped improve our site while supporting us during this process.

- IABC Calgary -

I want to thank you for the custom development of our Product Information Management system. Well done to the architects, programmers, account, and project managers.

- Cloverdale Paint -

The new website is definitely a success. Once again, I would like to thank you and Graphically Speaking for helping us out.

- EasyPark -

You, and the teams behind you really do such amazing work and truly boost the capabilities of our team here at Canfor. Thanks for all your work!

- Canfor -

Some of Our Credentials

  • Microsoft Gold
    Application
    Development
    Partner
  • Google
    Agency
    Partner
  • Adobe Magento
    Agency
    Partner
  • Shopify
    Certified
    Partner
  • Progress Sitefinity
    Medallion
    Elite Partner
  • Project
    Management
    Professional
    PMP Certified
  • Certified UX & UI
    Specialists
  • Certified
    Usability
    Analyst
  • WEBSITE DESIGN
    & DIGITAL MARKETING

Graphically Speaking

#840 - 1140 West Pender Street Vancouver, BC, Canada V6E 4G1

Call us 604.682.5500
Toll Free 1.877.875.4337
© 2023 Graphically Speaking Services Inc.
All right reserved.
The BC Public Service (Graphically Speaking) acknowledges the territories of First Nations around B.C. and is grateful to carry out our work on these lands. We acknowledge the rights, interests, priorities, and concerns of all indigenous Peoples – First Nations, Metis, and Inuit – respecting and acknowledging their distinct cultures, histories, rights, laws, and governments.