I will talk about one of the most dangerous and, in my opinion, stupid mistakes in contextual advertising – the lack of understanding of the meaning of “keywords” and, as a result, the use of all queries that come to hand to promote the product.
After reading this material, you will be able to check your ad campaigns, ask your contractor or ad specialist what keywords are being used, and assess their relevance as they may be wasting your budget.
This will be useful for:
- business owners,
- advertisers with a limited budget.
The text can be skipped if:
- You are promoting events, webinars, infobiz, collecting a subscription base.
- The target semantics in campaigns have been worked out by at least 80% and you need to increase the number of leads.
- There are not enough resources to “fight” for the target semantics.
- Your product belongs to the goods of impulse demand “saw – wanted – bought”.
What is the problem
Let’s start with an example. To promote the product “electric ovens for a bath” they use keywords like “wood-burning stove”, “a stove for a bath with their own hands” or “how to choose a stove for a bath.” At first glance, these keywords can generate clicks and even bids. But are they suitable for attracting real “customers” and, moreover, do they lead to profit?
For example, a person is looking for a similar product, but it is not a complete analogue. “Electric oven for a bath” and “wood-burning oven” are completely different products with different prices, characteristics, and often they are even used in different objects and for different purposes. What is the likelihood that the user is interested in another product? And after that, will he start the process of finding a place of purchase again?
Or people are not looking for a product, but information about it, its analogue or a way to solve a problem, but they do not plan to purchase the product. For example, “do-it-yourself sauna stove” – in this case someone is going to make a do-it-yourself oven and is unlikely to buy a ready-made solution. And on the query “how to choose a stove for a bath”, it is clear what a person chooses, but if the site does not have an article on how to choose the right stove, then such a query will most likely not give the desired effect. The user is very far from the purchase stage: he has not yet figured out which oven is right for him.
Of course, you can get clicks and bids on them, sometimes even cheaper than from competitive keywords. But there is a catch – the requests received from the so-called “information” and “near-target” requests have significant drawbacks:
- Most often, users are not yet ready to buy, they think, count, “recount and change their minds”. Because of this, they take longer to make a purchase decision, and this affects the speed with which money invested in advertising “turns around.”
- With a high probability, the conversion to sales of such orders will be lower than that of orders with good keywords. This means that you will need to receive more applications in order to fulfill the sales plan.
- Most likely, to work with such requests, you need a separate strategy of the sales department, which will warm them up and lead them to purchase.
What’s going on from a business perspective
Rather than investing a budget in buying good bids that will make money faster and more likely, the advertiser is spending money on cheap bids that are less likely to make money and over a longer period of time. That is, the budget is spent inefficiently, and this is not visible until the ROMI is calculated.
Let’s look at a real example with numbers
Advertising budget – 9,000 rubles.
The average bill is 6,000 rubles.
Results for “good” keywords:
- Application price – 300 rubles.
- Number of applications – 30 pcs.
- Sales conversion – 30%.
- Sales – 9.
- Revenue – 54,000 rubles.
Results for “so-so” keywords:
- Application price – 150 rubles.
- Number of applications – 60 pcs.
- Conversion to sale (we took a very optimistic indicator) – 10%.
- Sales – 6.
- Revenue – 36,000 rubles.
Yes, advertising paid off and the difference in the example is small, but which is more profitable: get 54,000 rubles or get 36,000 rubles by investing 9,000 rubles?
If the budget was not 9,000 rubles, but 90,000, then the difference would have amounted to almost 180,000 rubles in revenue. And if the average check of the company is 50,000 rubles, then the difference in revenue would be 1.5 million rubles in one month. That is, the company would have earned in any case, but far from the same money, and the larger the budgets and the average check, the greater this difference in revenue will be.
Another example from life
We conducted an audit for a home construction business, which promoted through a huge number of “some” keywords in the Yandex Advertising Network (YAN), driving traffic to the site with an offer to get a directory of houses. This advertising campaign provided them with a conversion rate of about 10% in an application on the topic of “building houses” and the cost of an application in the region of 260 rubles.
When we calculated the conversion to sales, we got an indicator of 1-2%. That is, out of 100 applications, the company received 1-2 sales worth 13,000 – 26,000 rubles.
In this topic, such results are victory: the advertiser made a profit, but the victory was ensured by the high average check and product marginality. They compensated for poor ad performance. But not everyone is ready to pay about 17,000 rubles per client.
When the advertiser turned off all low-quality keywords, focused on more effective keywords, increased the advertising budget and made a website with an offer for “warm” customers, the bid price more than doubled. They began to receive orders for 630 rubles, but the conversion to sale increased to 12%, and the sale price was at the level of 5500 rubles, which is at least 3 times less than it was before.
Why is this happening
Contextual advertising is a tool for working with generated user demand. If a person is looking for a specific product or service, just give them a good offer and you have a high probability of a sale.
Now we quickly perceive and absorb information, we are accustomed to landing pages, forms of collecting contacts, online consultants, so it is possible to sell a product to a very cold user. However, if it is not specially warmed up, it will remain cold and will not make a purchase. He does not just need to call, say the price and ask “well, take it?”, He needs to be friends with him, he needs help, consult and remind about himself, drag him to a blog or social network.
More often than not, managers do not do this, they say that these are “the wrong leads” or “he only needs a consultation,” or they simply silently put a “rejection” upon hearing the first objection. When do you think they are ready to buy, they will look for your site? If he has not received due attention from you, then no, he will simply enter a new query into the search box and go to competitors.
What to do?
If you have a question about the effectiveness of advertising and you understand that you are buying low-quality applications, then you have two options:
- Change your advertising strategy and refuse to buy “bad” bids, clean up keywords and change placement positions;
- Change the strategy of the sales department and adapt them to work with low quality orders.
How to proceed
- Find out what keywords are used for promotion and collect data on their effectiveness: conversion to an application, cost of an application, conversion to sale, cost of sale, ROMI.
- Check keywords for “junk” and check for which queries your ad is shown. And then carry out a “cleanup”: remove all requests that do not bring results in the form of requests, or even better, refuse requests that do not lead to sales.
- Set up and maintain analytics of advertising and sales, monitor the final indicators (average bill, transaction cycle, ROMI). It is desirable with the help of end-to-end analytics services, but for a start, at least in Excel.
- Having made a website with an offer for warm customers, tell us what you provide the service and how you do it. Suggestions like “download a catalog” or “take a survey” and get an 80% “checklist” will give you a lot of low quality leads.