Question 1

What Can I Afford To Pay For A Lead From Paid Ads?

Accepted Answer

If you’ve been using Google Ads or other paid advertising platforms to generate leads, you probably noticed that among all of them, Google tends to have the highest cost per lead (CPL).

Why?

Because the conversion rates of those leads are usually higher. Google understands the intention of its users and uses their algorithm to actively seek out users who have shown an interest in your product—those who are ready to buy.

According to Unbounce, “50% of people arriving at a retailers site from paid ads are more likely to buy than those who came from an organic link.” Click-throughs from PPC results convert 1.5 times more than organic search results (Atomic Reach). Meaning, in terms of getting higher bottom-funnel conversions, PPC beats SEO.

To make sure you have a well-optimized PPC campaign that generates revenue, it’s crucial to gather conversion data first. Sure, it might take some time. But it’s one of the most important elements in building high-performing campaigns that give you a huge return for every dollar you spend in advertising.

Question 2

How do I know the cost per aquisition of a client if Google Ads is only bringing in leads?

Accepted Answer

If your Google Ads account is gathering leads (as opposed to revenue), then it will be important to manually determine the cost per aquisition of a customer. Cost per aquisition, or CPA, is your bottom line, after all.

Getting to the bottom of this number is not always straightforward, but it is always worth the effort.

THe goal is to look through your recent sales and leads, and then to try to determine the average conversion rate of a lead that comes from Google Ads. That way we can apply the conversion rate to the performance reported by Google Ads in order to determine the CPA of a customer/client.

Here is an example of the math equation that needs to be done:

If your CRM/sales reps are able to find 19 leads that originally came from Google Ads in the past 4 months.

And 8 of those leads converted into a customer/client.

Then, 8 converted leads out of 19 total leads is a 42% conversion rate from Google Ads.

If Google Ads is reporting 63 leads in the past 4 months and spent $20,000 in ad spend to do that, let's apply the 42% conversion rate to those numbers:

42% of the 63 leads gathered by Google Ads is 26.46 leads that were converted into clients, theoretically.

$20,000 spent on ads divided by 26.46 clients means each client cost $756.

Now that you know each client cost $756, you can ask yourself: Is that a profitable amount to spend aquiring a client based on how much revenue clients bring in over their lifetime with the business, on average? If so, then it's probably time to start talking about increasing the monthly ad spend to begin scaling how many leads are coming in each month.

How to find the leads that came from Google Ads

Leads that submit a form will need to be tracked using UTM parameters. This will need to be done ahead of time, so that the contacts in your CRM can be identified as having Google Ads as their source.

Leads that call your business won't have any UTM parameters attached to their contact record (and, in many cases, won't have a contact record unless the person who answered the phone added them into the CRM). In this case, we can send you a list of names & phone numbers from our call tracking app, and then you can manually match up your recent sales/new customers/new clients to the list.

Question 3

How important is it to have a fast website and does that affect ads?

Accepted Answer

Website speed can affect ads because it can cause a higher bounce rate (this means people might be more likely to click on an ad, get impatient while waiting for the page to load, and close the tab). It usually isn’t an urgent issue because it doesn’t make a huge impact, but if you are wondering whether your website is fast enough, here is what you can do:

Once you get the result, look at the Load Time. If it is less than 2 seconds, then you are all set! We have found the conversion rate is unaffected as long as the website loads in 2 seconds or less. If it is more than 2 seconds, contact your developer to see what can be done to speed things up.

Question 4

Why is the conversion rate higher when leads come from paid ads vs. organic?

Accepted Answer

The paid campaigns are always going to bring in higher quality website traffic than organic search results because:

Ads have headlines and descriptions - vast amounts of them - that have been optimized for click-through-rate by us and by the algorithms.
Organic searchers aren't always going to be sent the correct page. When someone does a search on Google and finds your website in the results, they might not get to the landing page/homepage. They might end up on a blog post, etc. In fact, you can see what percentage of the website visitors enter your site from the landing page/homepage by going into analytics.google.com, clicking on Aquisition, then Search Console, then Landing Pages on the menu on the left.
You're also getting a higher percentage of people who are motivated to buy. Many people are looking for information and will end up on an article on your site. The people who do click on an ad are looking to explore your brand/product/service from the perspective of someone who is considering pulling out their wallet.

Conversion rates from paid ads tend to be 6 times higher than conversion rates from organic searches.

Question 5

What is a Good Conversion Rate?

Accepted Answer

Across industries, the average landing page conversion rate was 2.35%, yet the top 25% are converting at 5.31% or higher. Ideally, you want to break into the top 10%.

Source: https://www.wordstream.com/blog/ws/2014/03/17/what-is-a-good-conversion-rate#:~:text=Conventional%20wisdom%20says%20that%20a,in%20the%20average%20performance%20bucket

Question 6

What is the best ad copy strategy to use for search campaigns?

Accepted Answer

The recommended approach for best ad copy strategy is to use 2 Expanded Text Ads & 1 Responsive Search Ad.

Every search campaign’s ad group has these 3 ads inside it.

The expanded text ads give a structured ecosystem to try out the two sets of headlines/descriptions you think will work the best, and then use the RSA ad to give you insights into which ad copy is most effective.

Effective copy can be a better click rate (which helps with the quality score) or a better conversion rate.

After there have been 100 clicks on the ads, then you can begin making changes to optimize the expanded text ads based on those insights.