Folks don’t like not reaching goals and a PPC campaign manager HATES IT! The chance that desired ROI figures are not going to be met is enough for a professional to think of ending a campaign as soon as possible. That is a big mistake. Your campaign may still be on track and there is no reason to jump ship.
You may have more than one focus for the campaign. For example, if you are managing a women’s clothing campaign, conversion figures for dresses may be down, BUT the figures for shoes are doing quite well. Why stop both parts of the campaign if one is still delivering on expectations?
You must be able to see the forest and not worry so much about the trees. It requires you to not think on an incremental level, worrying by about the ROI of one part of the campaign alone. Instead, you should consider the overall effectiveness of the campaign. You are then better able to reallocate resources to the top performers.
Traffic Does Not Always Go One Way.
Your campaign can be dealing with several products and the traffic is not heading in one direction alone. It is probably because of differences in consumer needs or perceptions. Keywords for one may not be as productive for the other. The same message might not attract audiences for both. You must keep that last point in mind because too often advertisers forget it.
It is true that reports matter but hitting the panic button because the monthly report isn’t perfect is not necessary. Projected ROI figures do not surface for a number of reasons. Time and effort will be spent on terminating a campaign and replacing it with a new one. Do the figures really justify drastic steps?
Not always. The race is usually won by the long-distance runner. A little patience will help, and it gives the campaign time necessary to grow. Of course, it does not mean you ignore what is going on. Campaign figures ought to be examined periodically.
What to Look at Carefully
Key Performance Indicators (KPIs) are not simply interesting statistics. They are hard measures that gauge a campaign’s success. These are what you should be checking on a periodic basis.
Cost Per Acquisition. These figures will broadcast if your campaign is on the right track. It is possible that the ROI of the campaign is not setting performance records. Yet, if the Cost Per Acquisition is low, your campaign is possibly not in the negative and profit is being generated. If you examine this expense on a routine basis, it can alert you to trouble brewing. You can then do some adjustments and reallocate funds without going into crisis mode.
Conversion Rates. The analysis will include conversions, click-through rates, and average costs per click. You decide the intervals for evaluation but consider trends that may be affecting the data. Consumer behaviors such as Christmas shopping, vacation spending, and back to school purchases can impact the data. The same is true for traditional slow seasons. Keeping seasonal activity in mind will make the overall analysis a bit more realistic. The desired ROI figures might still not be there, but business revenue just might be up from a few months before and trending favorably.
Concentrate on What Works.
You could be doing better than you think. If you have two campaigns going and one is performing poorly, while the other is setting amazing records, there is no reason to stop both. That would not make sense at all.
Instead, reallocate budget cash from the underperformer and reinvest it in the one which is successful. You must stay positive. Being negative will only cause you to sink in the mud when being optimistic will pull you out. Redeploy your budget, give it some time to produce results, and then see if the ROI is what you want.
Evaluating success or failure of any PPC campaign means doing more than reaching a specified ROI figure. You must collect data, determine what is working, and then make needed budget changes. If you are making money, there is no need to stop the campaign entirely. It may just need some adjustments to churn out the ROI you want.