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Overcome Diminishing Returns with Ad & Keyword Testing in Paid Search

You’ve done everything! Everything is set up, the client is happy, and so are you. However, how do you continue to be successful and not lose steam toward the end of the campaign? Well, one thing not to do is spend your budget unnecessarily. Why? This could have the opposite effect on your goal and result in diminishing returns. How do you avoid this?

Higher Spending Doesn’t Equal Higher Revenue

It’s a common belief that more spending equals higher revenue. But in many campaigns, there’s a twist. After a certain point, instead of yielding results, your spending might lead to diminishing returns. In this situation, the increase in investment no longer results in a proportional increase in revenue. Here’s why: Initially, your campaign targets high-priority keywords and search terms. Once you hit these targets, the audience pool gets bigger and will start including lower-intent users and pricier audiences, which could result in less revenue over time.

How can we fix or stop this? This is where you start getting creative, especially during the testing phase. This is what makes Google Ads a great place to test out sample ads before officially launching your campaign. Embracing experimentation is vital, as it will analyze your ad performance and help you identify which customers and audience pool respond to you the best. Once you know what works best, you can focus your budget.

Find the Sweet Spot!

Loyal customers who frequent your brand and are familiar with your company can usually be recognized through their voice and tone. Are you staying true to the voice that drew customers in to begin with? How about promotions? Are your ads up to date on special offers or limited-time promotions? Is your CTA unclear? Test it out and see what styles of ad copy work best and which ones customers respond to! Remember, testing is key to finding the sweet spot in your campaign.

Then there’s keyword usage. Keywords are critical to finding out if you’re targeting the correct audience, but this can be expensive if you’re too off-target, resulting in overspending on irrelevant terms. Once again, Google comes to the rescue, as you can try out different keywords with their services, too. As you perform these tests, there are some additional strategies and tips to think about when choosing good keywords:

  • Focus your keywords on the product you’re promoting rather than the brand overall.
  • Identify negative keywords and themes quickly.
  • Remember what your campaign’s goal is. 
  • Pay attention to the different parts of your experiment. What’s the status of the conversion rate, budget, search terms, keywords, etc?
  • Review the overall performance of the experiment before giving the green light.

If the experimental campaign works well, you can launch the campaign using the same design as your practice run. You can also choose the keywords that performed the highest and add them to your current campaign. If the experiment fails, then use it as a learning experience about what will not work for your campaign.

Find What Works with TargetPPC!

You don’t have to go about a Google ad campaign alone. Target River will ensure that no part of your ad campaign goes to waste. Our extensive experience with Google ads, SEO website content, social media content, and much more will ensure the correct audience sees your Google ads. Our WhoHowWhat strategy goes beyond simple keyword bidding. We understand how to strategically place your ads so that the right community sees what you have to offer. We have many professionals working for us who specialize in various marketing sectors and are here to help lead your campaign to success.
Reach out to Target River and bring success to your company today!

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