Increasing ROI on Adwords is very simple. You need to increase your website’s category conversion rate. This is the easiest thing to improve.
Trying to improve your ROI Adwords by increasing profit margin or reducing your tax burden is extremely difficult.
Click here to see how to find out how to calculate your correct Adwords bid.
As I said, of all the aspect that go into calculating your Adwords bid, by far the easiest to change is your website’s conversion rate, the question is, “how do I do this?”.
Specific. You need your ads to be as focussed as possible. This means having extremely targeted keywords.
Don’t use soap as a keyword. Use terms like “natural soap” “handmade soap” and so on. And you should only target areas where your customers are, there is no point in advertising soap in Antartica if you don’t send your products there. Be as specific as you possibly can. Your keywords should describe what you are selling as accurately and humanly possible.
And you should ALWAYS use phrase or exact matching.
The landing page of the ads should take people direct to the product or within one or two clicks of the product. Your landing page should take visitors to a page where they have to choose the colour of their soap or the type of the soap. Your landing page for your soap ad should not take people to your homepage and it should not take people to the “cleaning products” category. The landing page should only contain soap products.
By using narrowly targeted keywords you are getting the most qualified visitors to your site and by taking people to the most relevant page on your website you are increasing the chance that visitors will actually find the product they are looking for.
This is where you start when you want to increase your ROI on Adwords.
Moving on, your ad text needs to be just as specific as your keywords.
The title of your text ad should contain the keyword phrase you are using for that ad. You want people to buy when the click your ad, you should include this information in the ad so people know what you expect them to do when they click your ad. This means including terms like “by now” order now” “subscribe now” in your ad.
From here you need to start improving your website. This means giving delivery time, delivery costs, prices, warranty information, shipping and returns information. And making this information easy to see as possible.
The correct Adwords bid maybe much lower than you think. To give yourself a bit more ammunition ie to increase your ad budget you need to increase one of the factors in the bid calculation.
You either need to increase the
profit on the advertised products
the revenue from your advertised products
the amount you want to spend on advertising
your website conversion rate.
Out of these four things, you have the most control over your website and it’s performance in converting visitors into buyers and the first step in this process is getting the most qualified visitors to your website using Adwords.