Nothing is more important than keywords in the world of pay-per-click (PPC) advertising. Keywords serve as the starting point for everything. Bids and Quality Score are both set at the keyword level, and your ad rank is also determined at the keyword level. You are charged for ad clicks that are triggered by your keywords. So it’s important that you keep track of your keywords and make sure they’re doing what you want them to do.
Keywords are what you manually enter into your Google Ads account to be triggered by search queries from users. These words or phrases are used to describe your product or service and are selected to help determine when and where your ad will appear. People will see your ads based on the keywords you select.
Keywords are also used to match your ad to Google Network sites that are relevant to your keywords and ads.
Keyword optimization is important because proper use of keywords communicates to search engines what your web page is about. This increases the likelihood that the search engine will find your web page relevant to a specific query from a user.
Well-chosen keywords and phrases ensure that your PPC ad is seen by people searching for products and services similar to yours. The right keywords can help you attract new customers, increase click-through rates, and lower your advertising costs.
Tips to managing keywords include:
Knowing who your potential customers are, what they do, and why they do it allows you to understand them and predict which terms they will type into the search box.
Keywords used in Google Ad campaigns can be broadly classified as follows:
A key performance indicator (KPI) is a trackable activity that measures how well a key aspect of your business is performing or how much volume it receives.
This can include:
1) Gross revenue per visitor (RPV) — This is an important metric because it shows which website actions ultimately translate into dollars. The higher the number, the more revenue your business generates.
2) The rate of conversion — If you can’t measure money (as in a lead generation website with no sales), the conversion rate is the next best thing.
3) Cost of Customer Acquisition (CAC) — Obtaining new customers is costly. If you know your lifetime value (LTV), the profit made after conversion should be more than the initial cost per customer. The goal here is to perfect your processes so you can cut costs and save time while increasing profits.
4) Customer Lifetime Value (CLV) — The amount of money you make from a customer over the course of their relationship with you.
Keywords should be paused if they have been given a good chance to perform but are still dragging down your pay-per-click ROI and your account-wide Quality Scores.
Look for keywords that have resulted in spending but no sales in the last 30 days. By pausing these keywords, you will be able to reinvest your marketing budget in keyword research and double down on your best keywords.
Long-tail keywords are those that combine three or more words to form a more precise keyword phrase. Long-tail queries are used by searchers to help them narrow down their search for products, services, or information.
When people are on a buying or learning journey, they frequently begin with very broad or general keywords, possibly two-word phrases. As they refine their research, their search queries become much more specific and, in most cases, much longer. As a result, long-tail queries frequently have a higher conversion rate than broad terms.
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