Question 1

What's The Downside Of A Too-High ROAS Goal?

Accepted Answer

The higher the ROAS, the less of the market you can capture.

If you want to have a higher return, you need to spend less and make more.

Here’s why. In traditional sales funnels, we always have folks at the “bottom of the funnel” (people who are ready to buy) and folks at the “top of the funnel” (people who aren’t ready to buy yet).

Those who aren’t ready to buy are going to be more expensive. They’ll need to click on two or three ads before converting. Some of them won’t ever convert.

There's also people who will have a lower average cart value than others. So if you tell the algorithm, “I only want those who are cheap to acquire and who will spend a lot of money with me,” then you’re cutting out part of your market.

This is why a high ROAS goal will limit your ad spend and stop the account from growing.

The goal should be to choose the ROAS that’s just right (not too high and not too low) and try to maintain that ROAS while growing spend––gathering conversion patterns, optimizing the settings, keywords, product titles, etc.)

For further explanation, check out this video:

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

Here's What You Can Expect Now That You've Been Onboarded As A Client

Accepted Answer

Now that you have been onboarded as a client there are just a few technical things that we need to set up for your website, in order to properly track calls and conversions in order to better understand what optimizations need to be made.

This is a guide for you to know what these tools are, why they're important, and how they're paramount to the success of the campaign.

Don't worry. You don't need to do any of these things (that's what we're here for).

We might need to request access from you for some of these tools. If that's the case, we will reach out to you and make the process as easy as possible.

Google Tag Manager (GTM) Installation

Google Tag Manager is a tool that we use to track specific actions and events that happen on your website, such as conversions.

This tool integrates with Google Analytics, and allows us to see how your website visitors behave on your website.

By setting this up, we can track things like which forms a user has filled out, who has visited the website (important for remarketing), what links users are clicking on, etc.

Similar to how video cameras work to see what's going on in a physical store, Google Tag Manager with Google Analytics allows us to replicate that in a digital environment.

Call Tracking Metrics (CTM)

Call Tracking Metrics is important to set up, particularly if your goal is to have leads call your business.

This feature allows us to track conversations that leads have with your business. Our team will be listening in all of the phone calls to gauge the level of quality conversations that are being had. If lead quality is excellent, Call Tracking Metrics allows us to identify what campaign generated that phone calls so we can increase the frequency of calls from that campaign.

Conversion Tracking (Google Analytics)

Conversion Tracking helps us as advertisers to see when a user completes a desired action on your website, e.g. filling out a form, completing a purchase, etc.

Conversion Tracking utilizes Google Tag Manager in order to track actions and conversions.

Pixel Installation (Facebook)

Should your business goals require advertisements on Facebook, we will need to install what's known as Facebook's "Pixel".

The Pixel is Facebook's version of Google's "Tag", and it accomplishes many of the same functions that Google's Tag does.

Competitive Analysis

It's important to understand that other businesses in your space are likely advertising on Google as well.

Part of the process of creating a successful campaign is to see how your competitors are advertising. We uses a myriad of tools to identify what your competition is doing, if it's working, and how we can improve on it.

Ad Copy Creation

The Ad Copy is what a potential customer is going to see on Google when they type in their keyword to the search bar.

Every ad that we create will be relevant to the product/service that you sell and will be specific to the group of keywords that best describe your product.

Campaign Creation

Once we've received all the information relevant to your campaign, we can start the process of actually building out the PPC campaign. This is a complex process that involves taking the information that you filled out in the on-boarding process and translating that into keywords and advertisements.

Having the proper keywords, key phrases, ad budget, ad schedule, ad groups, landing page destination, etc. in place make sure that your ads are being shown to the right people, at the right time.

Also, depending on what your campaign goals are, it's at this stage that we configure the campaign to fit your desired customer actions, i.e. increase quality phone calls with potential customers, eCommerce transaction, contact form completions, acquiring customers for a particular cost, etc.

After The Campaign Has Been Created, But Before Launch

After the campaign has been created, we will schedule a time to review the campaign and discuss what has been created, why it's been created in that way, and the expected outcome.

Question 4

How can we make use of my existing customer base? / What is "customer match" used for?

Accepted Answer

If you have a large customer list, and if your Google account is eligible for "customer match," then you can implement some cross-selling and retargeting campaigns.

Because the audience size is limited and much smaller than an audience found on Google, we won't need a large budget for this strategy.

After about a month or two of gathering conversion data, we can also create a "similar audience" based on the customer list. Similar audiences are often effective, and we will incorporate it into our proactive targeting campaigns.

Question 5

Do you do Bing search campaigns?

Accepted Answer

Yes!

Typically, we wait until we have maxed out Google Ads. But in some cases, if your target audience is older, Bing can be a great channel to reach them.

Bing has about 10% of the traffic compared to Google, but it is very inexpensive and full of high-quality leads.

Question 6

Can I show my product ratings in my ads?

Accepted Answer

Yes, you can. However, we don't have a process to check for product ratings on our accounts with shopping campaigns. And here’s why:

We haven't seen a measurable performance boost by adding product ratings to the ads.
We don't recommend showing the ratings unless the average review capture is high.
The 3rd party review aggregator apps are expensive (popular ones like Trustpilot & ShopperApproved charge about $200/month.) We believe that money is often better spent on ad spend pulling in sales.
Google doesn't show the reviews if they are less than 30 per month (they don’t mention this in their help articles.) So most clients get frustrated when they pay for an expensive app that doesn’t even show reviews for that month.

Question 7

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.

Question 8

What are Dynamic Search Ads (DSA) Campaigns? When should I use DSA?

Accepted Answer

DSA Campaigns are used as learning experiments - You may choose to build dynamic search ad campaigns because they help you learn what ad copy & keywords to use in the other campaigns, in case you missed any important and effective words. Adding new words to the other campaigns can be helpful to optimize -- and it can be especially helpful if you’re hitting a spend ceiling and would like to raise the budget. It’s a way to identify, rather than guess, which keywords to target.

When to use - These campaigns are 100% created by the algorithm based on the words used in the landing page -- the algorithm decides what ad text and what keywords to use. These are only good for websites that are extremely specific and have content centered on a set of keywords.

How to use - Give the campaign a small budget. These campaigns have the ability to spend a lot of money very quickly, and DSA campaigns usually have a lower conversion rate than other types of campaigns, so it’s okay to let it be in the “limited by budget” status.

Optimize - When you’re ready to see it’s results, go to the DSA campaign and click on Search Terms. Sort by impressions to see which terms have a high amount of search volume. From there, find the ones that are actually getting clicks. Use those terms in the other campaigns.

Question 9

Why is my profit margin becoming thinner as we scale?

Accepted Answer

When you increase ad spend, it's common to see an increase in your CPL or a decrease in your ROAS. Here's why.

Increasing our ad spend means we are targeting a larger audience. These are people who aren’t ready to buy––and it takes more clicks and longer time to convert them.

Simultaneously, we are competing with big players who have enough money to over-bid on keywords. This brings our CPC up.

The more we expand the audience size, the less certain Google’s algorithm will be when they show an ad. That’s because we’re pushing the algorithm to go into uncharted territory––it doesn’t know who to target yet.

If our low-hanging-fruits are composed of only a small portion of our audience, it’s hard for Google’s algorithm to determine who will go for the click.

So we need to warm up our audience and add “brand awareness” strategies until the top-of-the-funnel audience gains familiarity with our brand.

For example, we can run a display ad that targets a proactive (not remarketed) audience. This might not get many clicks but we’ll get views that can increase our brand awareness.

How do we spend more without diminishing profit margin (i.e. lowering ROAS or increasing CPL)?

It is nearly impossible to increase your budget without thinning your profit margin, at least for a short time.

To balance it, we recommend temporarily “leaning out” your account when trying to scale. This helps you preserve your profit margin while waiting for the algorithm to adjust to a higher ad spend.

Here are a few of ways to do that:

Pause brand awareness campaigns like video shopping
Scale back brand campaigns by reducing budget and or changing bids
Find brand keywords that are taking money in the other search campaigns

When a campaign isn’t limited by budget, we can often increase the spend without lowering ROAS by much at all.

But what if your account has maxed out its spend and reached its entire market/audience?

Use lower-spend outbound campaigns. These are campaigns like YouTube or Display that help increase your brand awareness and introduce your offer to a new audience.

Start running these campaigns with a lower budget and analyze how they affect your overall campaign performance.

You will sacrifice your ROAS with these new outbound campaigns. So it’s best to keep the ad spend low in the beginning.

As a result, your main campaign conversion driver should become more active.

You’ll be able to increase your outbound campaigns’ budget incrementally.

Question 10

Can You Join Our Company Slack Channel?  (...Or Other Communication/Project Management Channels)

Accepted Answer

We take communication seriously. And that’s why we don’t join external client communication channels or project management applications (like Slack, Ryver, Asana, Basecamp, or TeamWork).

Here’s why:

1. Juggling channels is inefficient

Each of our client managers may work with dozens of clients at a time. So you can imagine that joining every client’s Slack channel would get a bit noisy; not to mention each client uses a different platform type, which would result in a lot of clutter.

2. We have rock-solid processes inside our own agency

From onboarding to account setup to ongoing management, our communication processes are about as efficient and streamlined as it gets.

We have automations and purposely-redundant methods in place to ensure each client account is managed with the sharpest eye.

Which brings us to our final point:

3. Limited access and workflow

Each client is assigned a powerhouse team dedicated to their account: a client manager, a specialist, a backup specialist, and two strategists.

To provide the best service, client managers frequently rope a specialist or strategist into conversations with the client.

However, if a client manager joins a client's external communication channel, it is nearly impossible to rope in those other team members—and it is similarly clunky to forward client information out to the rest of the team.

With our communication systems, we can move efficiently, tie automations to our emails, and allow access to our entire team.

We prioritize frequent and meaningful communication

We try to set clear expectations early on regarding our time and yours.

While adding your client manager to your internal Slack channel might seem like the best way to reach us, our policy to stick with internal communication processes actually results in more availability to speak with you and higher-quality communication.

As always, we’re happy to chat with you about any questions or concerns. Reach out anytime.