So last week, we went over an introduction and the basics of what you want to look for when doing advertising for your e-commerce business. This week, we’ll be going over structuring and budgeting your PPC campaigns. So, let’s dive in!
Ad Group Structuring
Good account structure helps you make changes to your ads quickly, and allows you more granularity when targeting. So, when just starting off with PPC, the best ad structure strategy to use is to copy your site structure, by product. Taking our example from last week, let’s say you’re selling knitting needles. So you have a campaign for steel knitting needles, bamboo knitting needles, ceramic knitting needles, so on and so forth. By structuring it like this, it’ll help you create keyword lists that directly relate to the corresponding ad along with the ads leading to that specific product. This works really well because it aligns ad groups and landing pages for those ads like so:
If you’re feeling frisky, and want to take a look at a more advanced ad structure or feel that the by-product structure isn’t for your business, you should check out this article by Sam Owen at Search Engine Land. He talks about structuring ads based on user intent, rather than by product. Definitely worth a read.
Now, this is where things get tricky. Budgeting is always a moving target. You may have a set budget for these ads to begin with, but deciding how you’re going to divide it amongst your campaigns is where things start getting a little murky. There are three things that you need to look for when you first start planning your budgeting for ads. First, which campaigns have products with high search volume? Second, what is their average cost-per-click (which can be found in the AdWords tool we went over in part 1)? Lastly, which product will make you the most money?
What you end up with is a secret sauce mix of giving a higher budget for ads that have a high search volume, where it will make you the most money, and those that have a higher CPC that in turn requires more budget money. However, you don’t want to give too much of your budget to a campaign that’s going to have a high cost-per-click that doesn’t make you as high of a revenue as other products, this will cost your ROI and be a waste of your limited budget.
A good way to get around this when you’re starting out is to just give all of your campaigns equal budgets for the base amount you (or the client) are willing to spend each day, and tweak from there. If you start seeing a campaign performing at a good ROI, start giving it a higher budget. Conversely, if you see another campaign is not hitting its necessary ROI, you can redistribute the money in that campaign accordingly.
This is what makes PPC great for e-commerce. If one of your products is one of your top money-makers than feeding its ad group a higher budget will help you produce even higher sales as long as you have the inventory for it. If you’re a mom and pop shop, that is hand-making everything, you may want to limit yourself to a number of sales per day. But, if you drop ship or are a distributing from a large warehouse, keep feeding those budgets as long as you continue to get a good ROI from them.
Well, that’s it for this week. Next week we’ll go over the last details of using PPC for e-commerce. See you then!