5 Simple Ways to Do PPC Campaign Budget Optimization
February 21, 2024
When you’re running a marketing budget for a SaaS business, every dollar, pound, or euro counts!
If you use pay-per-click (PPC) advertising, you want to make sure your campaigns lead to a healthy return on ad spend (ROAS). This helps you understand which of your paid search and paid social campaigns are working well, and which need attention.
Our expert team here at Aimers is highly skilled in managing SaaS PPC budgets. Drawing from extensive experience, our PPC Technical Lead, Daria Ivanchik, has identified five key strategies to make your PPC campaign budget optimization and maximize revenue. Let's explore them in detail.
1. Define Your Goals
Before you jump in and start any campaign budget optimization, it’s crucial to identify the aims of your PPC campaigns.
We recommend doing this by the purpose of use:
- Awareness
- Consideration
- Lead generation
Or by position in the sales funnel:
- Top of funnel (ToFU)
- Middle of funnel (MoFU)
- Bottom of funnel (BoFU)
Source: ActiveCampaign
Why do this? This can help you determine how best to create, monitor, and configure your PPC advert, making it easier to get the right results.
Useful tip: Calculate ROAS for each individual stage of the sales funnel. Your ROAS will be higher for BoFU ads than ToFU ads, so doing this can provide you with more valuable insight.
2. Review your Budget Allocation Between Platforms
No two PPC platforms are the same. This means your Google Ads optimization strategy will be significantly different than, say, your Reddit Ads optimization strategy.
One significant error we often see SaaS companies make is splitting their budget evenly between all the platforms they use. However, it’s important to consider a range of factors including:
- Volume of traffic (for example, there is more competition in Google Ads, which generally makes it more expensive)
- The type of ad placement (Google Display Ads cost less per click than Google Search Ads)
- Your business goals (some ad platforms are better suited for the top of the funnel, while others are better suited for the bottom of the funnel)
Regularly monitor your paid ad platforms and tweak your budgets as needed to get the best results.
Useful tip: Split testing is a fantastic way to see which ad formats and types of campaigns generate the best ROAS and can help keep your SaaS PPC budgets in check.
3. Analyze Budget Efficiency by Location
When you offer a SaaS service, it’s highly likely that your ideal customers operate worldwide!
While this opens up your customer base, it can make it harder to evaluate the PPC profitability of each region.
The most serious mistake – using locations with different cost-per-clicks (CPC) in one campaign. For example, according to WordStream data, the Philippines has an average CPC of 75% less than the US.
Source: WordStream
You can optimize your campaign budget by grouping campaigns by location. This makes it easier to monitor CPC and ROAS and means you can tailor your ads to appeal to people living and working in a specific region.
Useful tip: PPC platforms let you target your ads not just by country, but by region, city… even neighborhood! Going granular means you can personalize your ads to get the best results.
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Get In Touch4. Use the Right Performance Tools
If you’re serious about campaign budget optimization, there are a range of tools out there that can help you manage your ads and achieve your goals, all while keeping your ROAS healthy. We use various PPC automation tools to help us create winning ads for our customers. Other popular tools include Ad Espresso, Semrush, Ahrefs, and AdZooma.
Useful tip: Choose one or two tools to help you achieve your goals. While utilizing a suite of performance tools might be tempting, this can be a waste of time and resources.
5. Separate your Ads by Intention
If you want to get started with PPC quickly, you may save time by creating a universal campaign targeting many search terms. The problem with this is that your targeting gets muddled, meaning you can’t deliver a clear and concise message that draws potential customers in.
We recommend separating campaigns by intention. For example, if Google Ad optimization is the name of the game, you can split campaigns by:
- Brand mentions
- Competitor names
- Product or service mentions
This means more control over your ads, which in turn leads to increased relevance and profit for your business.
Useful tip: If you use Google Ads, why not consider a Single Keyword Action Group, or SKAG? This is when you create separate ad groups for each keyword you want to target. This allows you to target prospective customers with laser precision.
While this may take a little extra time to implement, it can lead to a lower cost per click and improved ad relevance.
Takeaways
Aimers: the Campaign Budget Optimization Experts
As you can see, there are multiple ways of optimizing your PPC campaigns, no matter which platform you use.
Targeting and personalization is the key. By taking the time to optimize your campaigns in line with the needs and wants of your customers, you can reap the rewards later.
One final useful tip: Regularly revisit your campaigns and your optimization strategies to make sure you’re still getting the right results. The PPC landscape is constantly changing and evolving, and it’s vital to keep up!
Want to make sure that your ad campaigns are well-optimized and bring you the best ROAS? Contact us, and let’s find a way to take your paid ads to the next level.
Daria Ivanchik is a skilled PPC Growth Leader who excels in driving growth and optimizing campaign performance.