Here’s A Little Preview
How’d We Get There?
We’ve all heard the words of wisdom, “You’ve got to spend money to make money.”
This adage rings true for most things, but it leaves out the most important part – WHAT do you spend your spend the money on?
Well, the answer to that is actually easy: You spend your money on things that will make you even more money.
Learning how to increase ROI online will allow you to create exponentially increasing returns, or what we like to call, Snowballing ROI.
Here you’ll be guided through an example of Snowballing ROI (#SnowballingROI :)) involving a local countertop manufacturing company in the central Maryland region. We’ll discuss the problem, our proposed plan, our execution, and finally the increase in ROI associated with our efforts.
The client had been running a Pay-Per-Click (PPC) campaign for this client for quite some time before he had reached a stalling point.
His ads had been getting around 10-12 leads per month and he was spending about $80 per lead. Our goal was to try and cut that lead cost by at least 25%.
Before we could orchestrate a plan, we first must ask ourselves the fundamental question being discussed in this post – how do you increase ROI online?
- Do we optimize for conversions?
- Do we try new ad copy?
- Do we adjust our landing page?
The answer? Yes. We do it all. But where on earth do we begin?
Our writers got to work right away. They began by coming up with new headlines, different body copy, and dozens of new calls to action. We then took the headlines and copy that we’d created and began putting them together.
Eventually, there were about 100 ad variations to choose from. So, we took the next logical step and we sat down sifting through every last one.
We were looking for 5-10 of the best combinations in order to begin testing in our high volume campaigns. The best options were chosen based on the following criteria:
- How does the headline relate to the copy?
- Does the ad show value in the user’s click?
- Does the call to action pertain to the landing page offer?
- Does the ad spark a sense of urgency?
Once the ads were chosen, we began testing immediately.
We would test one new ad at a time, wait a few weeks, choose a new winner, insert a new ad, and repeat. Throughout this process, we could watch our conversion rate gradually increase and our cost per conversion decrease at the same speed.
We were one step closer to our goal of, not only, decreasing cost per lead by 25%, but of exponentially increasing ROI online.
Due to our success with ad copy testing, we had finally reached the threshold to enable Conversion Optimizer. For those of you not familiar, Conversion Optimizer is a tool that can be enabled once a campaign reaches a volume of at least 15 conversions in a 30 day span.
Once it is enabled, you no longer target bids but rather a target cost per acquisition (CPA).
This allows you to say, “I want to pay around/no more than $XX.xx for a conversion in [AdGroup]”. It then uses historical conversion data to set bids for keywords that will result in conversions within your target CPA requirements.
When we first launched Conversion Optimizer, we started our target CPA at $80 and over time, as our conversion rate increased and our ad copy helped drive down cost, we were able to get our target CPA down to $65. To this day it is still consistently being lowered.
So after all of the ad testing, all of the conversion optimization… did we get anywhere? Did we accomplish our goal of cutting CPA by 25%?
Did we increase ROI online? You bet we did!
In fact, we dropped CPA by almost 40% and more than doubled leads! Over the two and a half week time period, we successfully dropped our cost per conversion by 39%, increased our conversion rate by 154% and more than doubled our total number of conversions!
Cheers to Snowballing ROI!
Don’t believe us? Check out the cold hard facts one more time!