Why You Are Not Making Money From PPC [Part 1] 13 Sep 2012
It’s one thing to make a PPC campaign. It’s another thing to make a campaign that has the potential to become profitable. There are a lot of advertisers out there that are still finding it difficult to make effective campaigns that have the potential to make money. The problem is that the advertiser doesn’t know why they are not making money. There are many reasons why a campaign might not be as successful as intended. Therefore, below are the main reasons PPC campaigns don’t make money. From identifying the problem, you can then look about reducing the deficit.
The Landing Page Is Not Getting Conversions
If you have read some of my other articles on landing pages, you will know that I rate the important of landing pages extremely high to a campaign. You may have done the hard work of getting targeted potential customers to your landing page. But, bluntly, if your landing page ‘sucks’, your effort in getting targeted traffic will be for nothing as they you won’t be getting the conversions you deserve. You may want to look at an article helping you decide what to put on your landing page to help improve it.
Your CPC is Too Low
The price you pay for each click is actually crucial to getting the right type of traffic to your landing page. The main problem is that advertisers are cutting their budgets due to this recession and becoming more cost efficient. From this, they see the solution to be to decrease their CPC. However, decreasing a CPC will do quite a lot to a campaign:
- The pages your adverts will appear will have a lower page rank and of less quality.
- As the saying goes, the higher you pay for a CPC, the higher the conversion rate is.
- A lower CPC will also cause your ad impressions and CTR to decrease.
For this reason, try to not cut your CPC because it won’t make your campaign run cheaper. Instead, it will cost you more for the same previous results and cause your campaign to run a lot more inefficiently.
Your Keywords Are Wrong
Remember that it is the keywords you choose that make your campaign contextual. That is why it is extremely important you choose the right keywords for your campaign. Choosing the wrong keywords will cause the wrong type of people to be coming to your landing page, that is if they even click on your advert. As well as this, you may find that the keywords you choose are quite costly too. Therefore, you may also be introducing your campaign to a much more competitive market which works as a catalyst to the failure of your campaign. All from just choosing the wrong keywords…
So there is the first three elements of a campaign that may be causing you to not make money in PPC. It is important to remember though that the solution to PPC problems are not overnight wonders. It takes time and effort to re-correct the problems you may have in PPC. After that, it will be the ongoing tweaks you make to your campaign to keep it running at its best.