PPC (Pay-per-click) ads have become an increasingly popular marketing strategy for e-commerce businesses.
With the rise of online shopping 🛍️, PPC ads are an effective channel for driving traffic to your site and increasing sales.
In this substack, I’ll go over how to create effective PPC ads and how much you should spend.
Why should you use PPC ads?
Increase visibility and brand awareness
Targeting specific keywords and demographics let you reach a wider audience and attract more potential customers.
According to a study by Google, companies make an average of $2 in revenue for every $1 they spend on Google Ads. The ROAS is 200%.
Cost-effective advertising
Unlike traditional advertising methods, such as TV or print ads, PPC ads let you target specific audiences and you only pay when someone clicks on you ad.
What does this mean?
Well, this means you can avoid wasting money on ads that don't generate results.
A WordStream study found that the average cost per click (CPC) for Google Ads in the e-commerce industry is $1.16.
Boost website traffic and sales
WordStream also noted that businesses that use Google Ads generate an average of 50% more website traffic than businesses that don't use Google Ads.
Additionally, companies that use Google Ads generate an average of 65% more revenue than businesses that don't use Google Ads.
Target your advertising
You get to target specific audiences based on their interests, demographics, and search behavior.
As a result, you can reach potential customers more likely to be interested in their products or services.
Google has shared that organizations that use targeted advertising generate an average of 2.7 times more revenue than businesses that don't.
Measurable results
Track your advertising performance, and adjust your strategies accordingly.
In fact, track metrics such as clicks, impressions, and conversions to determine the effectiveness of your ads.
The Wordstream study, mentioned above, also details that companies that use Google Ads have a conversion rate of 3.75%.
How to set up the right PPC ads for your e-commerce site
Step 1: Define your goals
The first step in choosing the right PPC ads for your e-commerce business is to define your goals:
What do you want to achieve with your ads?
Are you interested in increasing sales?
Would you like to drive traffic to your website?
Do you want to raise brand awareness?
Defining your goals will help you choose the right type of ads and target the right audience.
Step 2: Choose the right platform
The next step is to choose the right platform for your e-commerce PPC ads.
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