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Does a Profit Maximization Strategy Make Sense For Your PPC Bidding Optimization? [Pains Series Doc]

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Does a Profit Maximization Strategy Make Sense For Your PPC Bidding Optimization? INTRODUCTION Having a focused and defined strategy is a necessity – not a luxury – in the modern era, especially when you consider the numerous interactions that can be tracked and attributed directly to specific campaigns and ads. Strategy nowadays is oen best determined by the data that is actually captured and plugged into your decision making. While all digital mar- keting provides powerful data, the best channel for tracking data across the entire funnel – from impressions to conver- sions – is Paid Search. Perhaps not surprisingly, then, the bidding strategies that produce the best results come from data that illuminates outcomes (conversions or revenue) at- tributed back to the ads, keywords, and the clicks that drove them. Thus, a successful digital marketing strategy will also incorporate new and innovative paths for maximizing profits as much as humanly possible. DEFINING YOUR GOALS When it comes to SEM, most advertisers focus on either con- version- or revenue-related goals, depending on the needs of the business. Why focus on revenue goals? Simply put, utilizing revenue data for modeling and bidding tends to be one of the best ways to generate returns on ad investment. While revenue data from online transactions are immediately available for some businesses, other teams are able to put latent or offline revenue data to use for optimization. But why focus on conversions? Focusing on conversions can be meaningful for bigger types of online purchases or subscriptions. This is especially pertinent in scenarios where revenue data tracking isn't available or has integrity issues. E N T E R P R I S E PA I D S E A R C H PA I N S 1 Ultimately, the best tangible data that maps to meaningful ad-click outcomes for your business will probably be the best indicator regarding the type of strategy your program needs. While every bidding strategy has its benefits, one gold nugget revenue-focused method called Profit Maximization stands out. In Paid Search, it's pretty straightforward: maximize profit dollars. It focuses on this specific revenue goal without another restraint, allowing two notable outcomes: 1) The strategy is able to yield the best absolute profit figures possible, however: 2) There is oen some decrease in total volume due to the bidding decisions. ENTERPRISE PAID SEARCH PAINS: Does a Profit Maximization Strategy Make Sense For Your PPC Bidding Optimization?

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