1) Economic Condition = Noncompetitive
“Some other places were not so good but maybe we were not so good when we were in them.”
“PPC Advertising Doesn’t Work For Me”
Ever hear ex-advertisers complain that Adwords was a waste of money? Most likely, that company wasted ad dollars by advertising a poorly developed website or pursuing some other flawed internet marketing strategy. They likely spent it fast before they came to realize that enterprise value had been destroyed by purchasing clicks which didn’t convert to new business.
When an advertiser or new account manager finds himself on the Non competitive node of our PPC Ad Management Process Diagram, a common initial reaction is “Despair!” Well, there is some relative element of truth in that reaction, but in most cases, it doesn’t have to be a fatal ad space condition. Indeed consider yourself lucky for having discovered the condition before busting the bank on under-performing ads.
Our experience shows that the competitiveness of all ad accounts can be improved. Some have the potential for massive improvement, others for only marginal improvement. If you ask us to review your ad account, in connection with providing a quote, then as part of that process we are going to offer our candid assessment of the potential for improving your account. If you’re already doing a great job managing the account, then we won’t hesitate to say so. The last thing we wish to do is to raise expectations which we cannot confidently meet. If we can recommend some improvements, we’re going to mention those. If your ad space is quite competitive, then our assessment will mention that.
Evaluate Your Ad Space
Some ad spaces are hypercompetitive, and crowded with ads placed by savvy ad managers. Others are hypercompetitive, and crowded with ads placed by buffoons. [FYI, the second ad space is the truly dangerous one!!]
Others still remain open for virtual homesteading. The important thing before you get started is to understand the competitiveness of your ad space, potential ROAS, potential for improvement, and then to manage your own account in a manner which makes you richer not poorer. Sometimes this involves making the most of the hand you’ve been dealt, not necessarily the hand you wish you had been dealt. Most often there exists sufficient room for improvement to move you to a happier spot on our PPC Ad Management Process Diagram.
Compare Your Site, Compare Your Web Offers
Sometimes an ad space is so competitive, that only the strongest survive. In such conditions, before spending another dollar on Adwords, take a critical look at your website and web offers. If they don’t stack up, then improve them. If you’re not willing to do so, then put your money in your pocket and walk away.
Analyzing Failed PPC Accounts
There are a number of possible reasons why you may not be competitive within your ad space. As previously mentioned some of the factors impacting your competitiveness are endogenous, meaning they relate to things under your control, and some are exogenous, meaning they may not be directly under your control.
|PPC Advertising Endogenous Factors
- account structure
- keyword selection
- ad creative content
- landing pages
- selling process
- sales / customer service
- forms of advertising
- ad positions / CPC
- Advertiser web offers
PPC Advertising Exogenous Factors
- competitive market forces (supply)
- competitive ad space forces (bids)
- alternative web offers (mkt prices)
- market conditions (demand)
- market trends (product cycles)
- market gyration patterns (day, time)
- geo factors (disparate geo demand)
- market seasonality
If you wish to improve your competitiveness, then focus on improving your endogenous factors. If you improve the first four, then you’ll expect a higher quality score, which will directly impact the financial performance of your account.
Sometimes if you stay on your toes, you might also identify an opportunity for exploiting or influencing exogenous factors!