Are you an SEA manager? Then you must be quite familiar with the following challenge of increasing the return on advertising spend (ROAS) in highly competitive industries without sacrificing investment in growth.
Competition on Google search engine results page (SERP) is extremely high in many sectors and everybody wants a slice of the pie. If you advertise in sectors where the keyword portfolio is competitive then the CPC will be in the upper one or two digit range. How can you still achieve a positive performance balance, while accelerating growth in these sectors at the same time?
A fast and effective way is to divide your campaign in granular structures. An example of how you can do this can be shown with car insurance.
Firstly, you have to book every keyword that might be relevant for the ROAS in a separate campaign with a keyword match type setup. (e.g. XYZ_exact, XYZ_phrase, XYZ_mbm, or XYZ_broad).
The SEA manager determines the daily budgets, the CPC bids and the positioning in order to make a detailed optimisation possible for every single campaign. The granular campaign structure helps you make a clear statement about the differences in performance within a keyword and the respective match type combinations, as well as about the extrapolation of the most efficient optimisation measures. In highly competitive sectors such as finance and insurance, this trick can improve the performance significantly.
The following measures guarantee a successful campaign:
Focusing on the strategic top keyword sectors and their restructuring into a special granular campaign setup: Since budgets might be restricted for some of the most important generic keywords, the exact match keywords will be separated into individual campaigns.
Managing the campaigns’ ROAS via CPC, positioning, and conversion strategies: After dividing the match types you will notice that the average CPC of exact keywords is higher than that of broad keywords. However, at the same time you will see an increased conversion rate. Separating the three keywords into individual campaigns allows more to be spent on exact keywords for performance strategic reasons, hence increasing the overall performance.
SEA growth strategy through controlled budget distribution in the fields “broad” or “modified broad”: If budget and range are not sufficient to place all keywords with broad match types, an SEA budget allocation from a performance point of view would be suitable to maintain the range and therefore also the growth strategy in the SEA channel.