PPC advertising has long been a cornerstone of digital marketing plans, successfully enhancing SEO initiatives.
However, some marketers are beginning to reevaluate the use of PPC in light of changing user search habits and the introduction of AI-driven search tools such as AI Overviews (previously Google Search Generative Experience, SGE). PPC advertising is still a vital and effective advertising channel for many firms in spite of this.
What’s happening with PPC?
In addition to the growing influence of AI in search, there have been other significant shifts in the search landscape. These changes have brought about several challenges, which we recently explored on the DMI podcast. Below, we’ll dive into six of the key challenges in more detail.
Competition is increasing
People moved away from digital media after the epidemic, which decreased demand for internet services, but competition for clicks was still fierce. Keeping cost-per-click (CPC) under control in the face of increased competition is one of the biggest problems PPC experts encounter.
For instance, in 2023, Temu, an online retailer, spent about $15 billion on PPC advertisements. Because there is such a large spender in the market, there is more rivalry for clicks, which makes it difficult for advertisers to keep their CPCs low.
Brands need to move away from ROAS
The pressure to achieve conventional key metrics, such as ROAS, can cause marketers to feel limited and divert their attention from a more comprehensive, strategic perspective of their initiatives. A skewed perspective can occasionally result from relying only on measures. For example, during the pandemic, when online purchasing was at an all-time high, this can have an impact on performance outcomes that may not accurately reflect long-term trends.
Costs are rising
Costs are rising due to more than simply greater competition; Google also charges for clicks based on complex and frequently ambiguous factors that are difficult for PPC specialists to control.
PPC has grown more costly for many firms, even while Google search still plays a vital part in the consumer journey that marketers cannot afford to ignore.
Marketers need to grow brands
When assessing their campaigns, marketers should take a broader view and consider more than simply the specifics of their PPC expenses. This entails adding indicators like brand searches or overall brand growth to PPC KPIs.
Even though the cost-per-click (CPC) may have increased, a PPC campaign may still be expanding the brand’s consumer base. Actions taken in one area frequently have repercussions in other areas, affecting how consumers view your brand in other contexts. By doing this, you improve their reactivity to the many advertising platforms that feature your company.
Search’s role in the marketing funnel has changed
One noteworthy change we’ve noticed is the upward movement of paid search. In order to reach consumers who are still in the Awareness and Consideration phases, brands are now placing bids on more informative keywords.
Google Ads has added new campaign types, such Demand Gen, in response to this trend, enabling advertisers to interact with customers earlier in the customer journey. Therefore, if brands think that higher cost-per-click prices are helping them draw in more new leads or potential eCommerce customers in these early phases, they are becoming more and more prepared to accept them.
Marketers have to use AI and automation strategically
Automation and artificial intelligence (AI) can greatly increase PPC campaign efficiency, but marketers must use a smart strategy.
It’s critical to identify situations in which AI systems could not be acting in your brand’s best interests. Even though Google Ads’ AI and automation technologies can be useful, depending only on them can reduce your competitive advantage and produce unimpressive results.
Strategies for success: Thinking beyond search
What’s the best approach to optimize your sponsored search campaigns in light of all the changes and difficulties in the PPC landscape?
Here are our top ten tips:
- Use YouTube ads
- Explore Demand Gen campaigns
- Optimize landing pages
- Know when your search campaign isn’t working
- Have accurate measurement and reporting
- Get to know GA4
- Change your bidding strategy when necessary
- Change default location targeting, if necessary
- Use negative keywords strategically
- Set up proper conversion tracking, with one goal per campaign
1. Use YouTube ads
Don’t forget about display and video channels while creating your PPC campaign. These platforms, which include YouTube and the Google Display Network (GDN), let you connect with clients across the Google ecosystem.
You can successfully broaden your targeting and go beyond merely obtaining search-driven traffic by carefully controlling your budget. As users go across the Google ecosystem, there is a fantastic chance to display pertinent advertisements, but it is crucial to match with the appropriate campaign goals.
Because so many brands undervalue YouTube’s potential in their PPC campaigns, it may be a very powerful medium. In an area where rivals might not be as active, this offers you a chance to distinguish out.
YouTube is the most popular streaming service in the United States, with hours of user-generated video. Given that 8.6% of its users view material on their TVs with family, YouTube is a very cost-effective advertising platform. Although it’s a reasonably priced advertising space at the moment, keep in mind that prices could increase as big businesses start to see its potential, particularly given the continued fall of traditional TV. For the time being, YouTube advertisements allow small firms to reach consumers in their living rooms during prime time.
2. Explore Demand Gen campaigns
Keep in mind that the Google Ads suite is a tool for ad buying as well as an advertising platform. You can choose between search campaigns, video campaigns, and demand generation campaigns when creating a new Google Ads campaign.
During the Awareness and Consideration phases of the marketing funnel, a Demand Gen campaign enables you to use native ads to generate leads and increase demand. YouTube is one of the biggest channels for creating demand, so it’s basically Google’s strategy for social media advertising. By using this strategy, Google is able to pique consumers’ attention before they even start looking for answers.
A Demand Gen campaign can assist you in creating demand, which will encourage further searches, once your search campaign has reached its maximum.
3. Optimize landing pages
It’s simple to forget about what happens when users click on your ad while creating a PPC campaign. The landing page they are taken to, however, is very important since Google uses landing pages to assess the caliber of your advertising campaign.
Consider these important questions:
What are people looking for? (Their keywords)
In what way are you answering these searches? (Your PPC advertisements)
Where are you going to tell them to finish their action? (The page where you land)
In contrast to the ad auction or other components of the PPC marketplace, your landing page is the only aspect of the search process that you have complete control over. Using efficient data collection methods, design a customized landing page that aids the user in achieving their goal—and yours—instead of merely directing visitors to a generic page on your website.
Think about where users are at in their journey and what they should do. Instead of sending someone to the homepage, lead them to the product page if they are specifically seeking for it.
Pro tip: Verify that the appropriate product is available. If not, you can be squandering cash on clicks that don’t result in sales.
4. Know when your search campaign isn’t working
Search might not always be the best way to market your goods or services. Search may not be the ideal option, for example, if you’re targeting a specialized market or utilizing terms that don’t bring in a lot of traffic.
It’s critical to consider each case separately. A content marketing plan might be a preferable course of action if search isn’t producing results, particularly if your market is still in its infancy.
There might not be enough search volume for your particular keywords, even if your product is great. In this situation, you might have to concentrate on increasing brand demand instead. Focus on encouraging people to search for your brand name instead of trying to increase traffic for that specific term.
Remember that you may now develop a brand using only digital channels because digital marketing has grown so popular. Concentrate on creating interest in your brand (e.g., YouTube advertisements). People will remember you and come back to look for your brand when they’re ready to make a purchase.
5. Have accurate measurement and reporting
One of the main issues facing marketers today is measurement, particularly in light of Google Analytics 4’s complexity (GA4). You might need to add data from other sources, like Shopify’s backend insights, to GA4 data in order to better understand what’s influencing conversions.
Take a longer-term, more comprehensive look at campaign performance rather than focusing only on the monthly report. You can include more significant measures if you examine performance over a period of six months or a year. How many new clients have you acquired, for instance? How many individuals are looking for your brand right now? How does your percentage of searches look?
6. Get to know GA4
With upgrades, AI features, and suggestions that necessitate careful navigation, the GA4 interface is intricate and always changing.
Google adverts has been around for a while and is really good at what it does. It helps you show adverts and eventually makes money for Google. With GA4’s AI integrations, you can now automate a lot of choices and steer toward what Google considers best practices. (An alluring blue button to apply all recommendations is also present.) But it’s crucial to take the time to consider whether GA4’s suggestions are indeed the best option for your company.
7. Change your bidding strategy when necessary
You can use Google Ads’ Smart bids feature to automate your bids.
To find out if Smart Bidding is more effective for you than manual bidding, it is worthwhile to optimize through A/B testing. For example, you may be able to cut the cost per click or increase your impression share by using manual bidding.
Pro tip: Take into account combining automatic and manual bidding. For instance, manual bidding can work better early in a campaign so you can adjust your strategy. After a few weeks, when the campaign is operating properly, you can move to automated bidding. Later on, if performance begins to deteriorate, you can always return to manual bidding.
8. Change default location targeting, if necessary
People who are physically in your place are the basic location targeting option in Google Ads. You might not want to limit your target audience to people in your close vicinity, though.
For instance, targeting the UK would entail contacting users of the UK version of Google, those who are presently in the UK, and those who are interested in the UK. Targeting those that frequently visit your targeted site is the most crucial location setting to concentrate on.
9. Use negative keywords strategically
To prevent drawing in customers searching for free offers, it’s a good idea to include the negative term “free” in your campaign, unless you’re selling a free version of your product.
Google does, however, match searches in a variety of languages. For example, Google might still match your English term if someone searches in Spanish for it when you’re running advertising throughout Europe. In this instance, the Spanish word for “free” must also be added as a negative term.
You can add them as negative keywords after using ChatGPT to help create a list of price-related “free” terms in the target languages. You can prevent free-related searches in English and other languages by adding the word “free” as a negative keyword on a phrase match. This will protect you in the event that Google translates the search query.
10. Set up proper conversion tracking with one goal
Setting up conversion tracking incorrectly is a typical mistake made by digital marketers that can disrupt your entire strategy. Make sure your conversion tracking is set up correctly, that it’s monitoring the right conversion, and that you’re not counting more than one conversion for the same action.
Remember that conversion monitoring plays a major role in many campaign decisions, therefore it’s critical to do it correctly. For instance, any judgments made by you or the Google algorithm would be based on erroneous data if you’re tracking the incorrect kind of conversion or counting the same conversion more than once.
Pro tip: Since it keeps the campaign focused, focusing on only one target might help you make sure you’re tracking the correct conversions. For example, Google might record two conversions if you have two goals, such as “add to cart” and “purchase,” and someone completes both. But sometimes, you might only want to keep track of purchases rather than cart additions.
PPC is still a strong tool for increasing website traffic and conversions, despite its complexity and dynamic nature. Even while it’s critical to comprehend the subtleties of successful PPC advertising and make use of cutting-edge tools like AI, automation, and Smart Bidding, the fundamental ideas still boil down to:
Keywords (questions)
Advertisements (responses)
Landing pages (points of conversion)
Use this simple strategy to better match your marketing with human behavior while creating and overseeing your campaigns.
Refine your PPC skills
The need for PPC experts is only growing. Learn the basics of paid search, including how to set up, manage, and optimize PPC campaigns, as well as how to report using GA4 and data visualization tools, in DMI’s succinct Paid Search course. This will help you launch or advance your career.