(This is part 2)
The range of keywords is often much broader for a service than a product. Including direct searches like “ppc consultant” and a much larger number of indirect informational searches like “how do I improve my adwords ctr”. Even similar terms like “ppc agency” vs “ppc agencies” turn out to have very different conversion rates i.e. you may find 5% of people who search for “ppc agency” may call you up or fill in the enquiry form vs 8% for “ppc agencies”. Also someone searching for “ppc agency” might be a larger client than someone typing in “ppc consultant” However someone searching for “ppc consultant” may have a particular complex problem they need consultation on.
It can take a long time to gather enough data to calculate conversion rates like the above for service based campaigns as the searches are spread out across a lot of different keywords. Once gathered the data can improve your campaign a lot. This is how most of the improvements were made in the campaign shown in part 1. It can make a big difference.
It takes a lot of human input and experience to estimate conversion rates until you can get that data. You really have to think about the thought processes behind each keyword choice. It takes a lot more thought than working our what someone is looking for if they search for “blue widget” instead of “red widget”.
The spread of keywords is so wide for some services that you never accumulate enough data on some of those keywords to know for definite what the conversion rate is so you are very dependant on your interpretation of the meaning of the keywords i.e. what does a searcher mean when they type in “consultants” instead of “consultant”. Are they looking for the same thing, are the looking to compare a few consultants or do they want to understand how PPC consultants work in general?
Cost saving is a big part of managing a campaign for a service based company and this is due to the number of information searches and research people do. For instance they may research employment law before trying to sue their boss, research plastering before they decide what work they want doing on their house or research different types of teeth whitening before consulting a dentist. In my market, for example, anyone that types in “adwords” or “ppc” could be a potential customer. The conversion rate to enquiries would be very low for most broad search terms containing the word Adwords like “how to set up adwords”.
However low doesn’t mean zero conversions so you want some of those visitors if you can get them for a low enough price but if you can’t get them for a low price you would be better not getting them at all. For instance if I was paying £3.00 per click for a highly relevant term like [PPC Management Services] then 30p per click for generic terms with the words +improve +Adwords in like “how to improve adwords roi” might be profitable. However paying £3.00 a click for both those terms as though they are equally good would be a disaster!
If you imagine paying a lot for every keyword that is even slightly relevant that you come first all the time you would get 100% of the business available to your campaign but the cost would be astronomical. A really cost efficient campaign may get you 70% of this avialable business but for 20% of the cost. Giving you a 3.5 times better return on investment. It also leaves less knowledgeable competitor’s open to being outmanoeuvred and paying a high price for the unprofitable traffic that you avoided. This 3.5x return on investment would then be multiplied by whatever other improvements you make like a 2x improvement for using bespoke landing pages would result in 3.5 x 2 = 7 times more ROI than before.
If you are interested in help with your PPC campaign feel free to call me now to discuss.