According to Hochman Consultants (2017), the average cost of pay-per-click (PPC) advertising is increasing – with the average cost-per-click in 2016 being nearly double that of 2013.
When you consider the fact that Google processes over 2.3 million searches per minute (Business Insider, 2016), this is hardly surprising.
But what can marketers do to ensure that they can attract customers on this increasingly competitive channel, while avoiding these burgeoning costs?
In my previous two articles, I looked at how to stop Google AdWords campaigns from failing by using a Customer Data Platform (CDP) to gain a holistic overview of customer behavior, and how data-driven attribution with a CDP can supercharge your paid search.
In this article, I’ll outline five ways that a Customer Data Platform can improve your AdWords performance and ROI by keeping costs down and attracting new business.
Content produced in partnership with Fospha.
1. Data accuracy
Many businesses continue to struggle with optimizing their keyword bids. The simple reason for this is the fact that, regardless of how modern and advanced your Bid Management platform is, inputting inaccurate data can hinder success – and be costly to your business.
A Customer Data Platform gathers, integrates and centralizes customer data from various sources to give marketers more control of, and visibility over, their data. This data-driven approach stitches together the customer journey, and uses attribution to accurately assign credit to various marketing channels based on their importance in the path to conversion.
Without this true view of their data, businesses are missing the accurate value of their different channels. They also risk making poor decisions about which marketing channels are beneficial, and which are not, which might result in budget being taken away from a channel which has a huge role in the path to conversion.
With more accurate data, Customer Data Platforms are able to highlight the true value of keywords – allowing your business to pinpoint high and Low Performing Keywords and campaigns, and optimize their spend on paid search.
For instance, with a more accurate data source, Fospha were able to help a client identify that 50% of their keywords weren’t contributing to any conversions. Check out the full case study here.
Manual bid Management can be a laborious task, but with the help of a bid management platform to automate the process, this becomes a quick, effortless and efficient process. The next step lies in super-charging the capabilities of this platform. And the answer lies in an accurate data source.
Combining the power of the Customer Data Platform to discover high and low performing keywords across all channels through this data, with the automation of a bid management platform, enables spend on poorly performing keywords to be quickly reallocated – resulting in an improvement in ROI.
3. Real-time access
Unlike most other Customer Data Platforms, Fospha facilitates real-time interactions for bidding, helping reduce and eliminate the amount of wasted clicks on incorrect audiences. A Customer Data Platform integrates seamlessly with bid management platforms like Kenshoo and Marin to support these real-time interactions, such as bidding on ad clicks.
Real-time access through a Customer Data Platform also enables marketers to automate their bid management through advanced machine learning.
Marketers are becoming increasingly aware of the importance of moving away from keyword-based marketing, and towards audience-based marketing. However, they can go one step further – making a move towards people-based marketing.
This is no less of a necessity with your bidding strategies. Understanding your audience is crucial, and by utilizing a data-driven attribution model, a Customer Data Platform provides you with a granular understanding of a single customer. From here, you are able to use your data to optimize your targeting and increase conversions by offering more relevant content to your customers.
In addition to this, keyword performance is largely dependent on types of devices used. It is important to boost keywords that do better on mobile and to suppress those that do not. Marin found that by adjusting bids for mobile, their clients enjoyed 10% higher CTR and 2.5% lower CPC than those that failed to do so.
A Customer Data Platform is able to detect these optimized conditions and adjust your bid management strategy accordingly.
5. Bidding strategies
Defining your bidding strategy can drastically improve the performance of your paid search campaigns. However, in order to reach a truly optimized level, different keywords, audiences and goals will require different bidding strategies.
A Customer Data Platform gives you a granular view of all your marketing channels to ensure the strategy deployed is custom to each specific need.
Content produced in partnership with Fospha. Views expressed in this article do not necessarily reflect the opinions of Search Engine Watch.