What is ROI and why is it important to my PPC advertising campaign?

by Steve Taylor
•
06 Nov, 2017
•

What is ROI and why is it important to my PPC advertising campaign?

Return on investment.

It’s one of the most important elements of an effective PPC marketing strategy. Yet, something that many business owners don’t stop to consider, or truly understand.

It can become too easy to focus on conversion rates and click through rates rather than the actual value we’re getting from our PPC advertising.

Whilst this is great for collecting leads and generating traffic – it doesn’t mean much to our profit, and that is the point of marketing, right? To get new customers and increase profit.

Calculating the return on your advertising investment is a crucial measure for understanding its effectiveness

What does ‘return on investment’ really mean?

It’s an accounting term that most of us have heard, and most of us have left to our accountants to deal with. But, as a business owner, it’s one of the most basic tools for understanding how well your investment in marketing is working out.

The technical calculation for ROI is (profit – cost) / cost

But before we get into that, what we really need to consider with PPC marketing is ‘return on ad spend’.

It’s worked out in the same way – PPC revenue minus the cost, divided by the cost.

So, let’s take an example. If you make sales from your PPC worth £1000, and you paid £500 for the click costs, your return on ad spend would be 100%.

(£1000 profit - £500 cost) / £500 cost = 1.0 or 100%.

Ok, that’s useful to know. But how is that different from return on investment with my PPC campaign?

The difference lies in what we consider to be a ‘cost’.

PPC click costs are not the only expense associated with a PPC campaign. Additional costs can include:

· e-commerce costs for the products sold (stock, storage, carriage)

· payment processing costs

· cost of returned goods

· customer services costs (salaries, phone lines, computers for emails, etc)

· copywriting for the PPC campaign

· website costs

· marketing automation

You can argue that you have most of these costs running your business anyway, and that is a good point. But to truly get an idea of the cost of PPC advertising and how beneficial it is to your revenue and profits, you need to factor in all the costs.

Only then can you compare it to other forms of marketing and decide on the best approach for your business.

Pay Per Click Specialists

Is Amazon PPC marketing really worth it for your e-commerce business?

by Steve Taylor • 21 December 2018

Amazon has taken the world by storm with its range of products, drone deliveries and streaming services, but one aspect you might not have considered before is its pay per click marketing, otherwise known as “sponsored products”.

If you sell products, then advertising through Amazon is an effective way of reaching a bigger audience and increasing your revenue. But how do you get started with one of the world’s largest retailers?

Sponsored product ads appear in both Amazon’s search results and product listing pages

Although you will find that the PPC ads on Amazon are discreetly marked as ‘sponsored’, they do fit in seamlessly within the rest of the search results, dare I say it far better than on Google where it’s obvious to many that the advertisement has been paid for.

It’s also easy to get started with Amazon’s PPC system.

Any seller with a professional selling plan can place ads, although not all of Amazon’s categories are currently available to advertise under. You can quickly get started and find the answers to your questions under Amazon’s helpful service pages , and as always, their customer service is easily accessible for support.

Just like Google Ads, Amazon’s PPC works as an auction style system where you place bids for where you want your advert to appear, and the highest bidder wins the first position.

There are several key reasons why you should be considering Amazon for your PPC advertising

Amazon is fantastic at running seasonal promotions. Like many people, around those all important dates of the year – Black Friday, Cyber Monday, Christmas, Mother’s and Father’s Day and Valentines, you probably head straight to Amazon to either buy gifts or garner some inspiration.

Amazon advertising can be found everywhere, from billboards to television ads, so you know that your PPC campaign can tap into some of that marketing magic too, something that Google still struggles somewhat to achieve.

It’s also perfect for boosting a single product you might be struggling to shift from your warehouse. Where Google is best for landing page campaigns and sales funnels, when you just have a product to clear or a new line to introduce to the market, Amazon is perfect for giving an instant boost exactly where you need it.

Don’t forget about the “accidental effects” to your organic SEO either .

The more your products are viewed online, along with visits to your website, positive reviews and that crucial “social proof” is in place, you will find that your organic SEO is given a boost and the effects of an Amazon PPC campaign will be found elsewhere in your digital marketing.

We think that giving Amazon sponsored products advertising a try in 2019 is certainly worth a try if you’re an e-commerce or drop shipping business owner looking for a new marketing tactic. As always, for advice and support with all things pay per click marketing, get in touch with us here at Bargainarena Limited, and we’ll be delighted to help.

What is ROI and why is it important to my PPC advertising campaign?