How we saved $8000 in AdWords

Editor note: This is a guest post from the SpyFu community.

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I want to share with you an awesome story about how we used SpyFu to save $8,029.44 per month for one of our clients.

It’s probably more. $8029.44 is just the amount we saved this month. It could have continued to climb had we not picked up on a big discrepancy.

How we found the huge gap

We recently took on a new client who had a previous PPC agency managing their AdWords. We looked at their old data–using SpyFu– and compared it to the competition. We immediately noticed that we shared a similar keyword subset and a similar position in rankings. But we were paying $1.23 more per click.

Our monthly spend, account structure, strategy, and creative were on par with the competition BUT we were paying 30% more. 

$1.23 per click may not seem like a lot, but it adds up pretty quickly. This is especially the case when SpyFu told us the competition was spending over $100,000 a month in AdWords.

Since our client had purchased 6,528 clicks in the previous month, we were needlessly spending 6,528 * $1.23 = $8,029.44 per month.

That’s a lot of wasted money!

That's a lot of wasted money

We promptly identified why and fixed it:

We had one-size-fits-all landing pages.

Because of this, we had poor quality scores, which leads to lower ad rankings and higher costs per click. We needed specific landing pages for specific keywords that were searched.
We fixed the problem by improving the quality score. We did this by creating unique landing pages and ads that included specific keywords. The increased quality score allowed us to pay a lower cost per click.

To give you a concrete example of this in action, let’s say you were selling cat food. What you don’t want to do is target as many keywords as possible and direct them to one generic landing page.
This is inefficient because:

  • You are paying for unrelated keywords.
  • Specific search terms won’t match the copy on the landing page.

Why generic pages don’t work

If someone searches “buy organic eco-friendly cat food,” she wouldn’t like to land on a webpage that only shows normal cat food.

And if someone searches “cat food that dogs can also eat,” she wouldn’t like a page that doesn’t deliver exactly what’s expected. A page that only has cat food and doesn’t address anything about food suitable for dogs would drive away prospects.

That is why it’s important to build dedicated landing pages for specific sets of terms.

Also, make sure you add negative keywords to avoid paying for keywords you don’t want. If you’re selling dog food, you don’t want people searching for “free dog food” or “fake dog food.”

Our client was questioning the ROI of their PPC program and was considering getting rid of it entirely. But now, we took them on and turned them into happy clients.

SpyFu has been a great tool for us because it has allowed us to map out and compare many metrics of competitors. This includes paid keyword trends, number of paid clicks, ad budget, and average cost per click.

Saved8000_chart

SpyFu allowed us to identify the top players by ad budget and cost per click. We can make sure ads are truly performing well based on ad history length.

It helps us find which competitors are paying less or making more with specific keywords. We can use this data to throw out unprofitable keywords and discover better keywords.

Have you ever wondered if your Adwords campaigns could be further optimized? Using the techniques mentioned, you can get a solid standard on what needs improvement.

PPC works if done right. According to Wishpond, businesses make an average of $2 in revenue per $1 they spend.

Let me know what you’re struggling with in the comments below and I’ll see if I can help.

This guest post comes from Will Chou of WebMechanix. Will is on a mission to help businesses increase profits through effective Adwords management. WebMechanix is a customer-first digital marketing agency that specializes in result-driven AdWords management.

  • http://www.webmechanix.com/ Arsham Mirshah

    YES! This is awesome – it’s all about using the best tools (especially your brain) to increase value — especially when that means SAVING $$$. Nicely done WebMechanix team!

    • http://willyoulaugh.com Will Chou

      Thanks for your comment Arsham!

  • Justin

    I have a paid app but can’t find much info for running a campaign that has a landing page first rather than a direct link to the download page. Do you have any experience with that & if so could you explain some best practices

    • AgentSidra

      Hi, Justin. Can you elaborate a little more on your question? Was it more a question about using SpyFu or one for Will (the author)?

    • http://willyoulaugh.com Will Chou

      I talked with someone experienced on our team. Try using the AdWords app extension. Like clothing, it may be better to send them to the download page if they’re a hot prospect. For clothes or other tech products, hot search terms mean that they’re ready to buy and can be sent to a salespage. Having said that, it’s always great to test to check out your unique situation. Test sending them to a landing page and sending value packed emails over time to nurture the relationship so they trust you enough to buy