A few weeks ago at SES New York, Wister Walcott gave a short presentation on “Portfolio Optimization;” he was referring to your PPC accounts. Walcott is Co-founder and VP of Products at Marin Software.
Portfolio optimization can be a motivator to be able to say: “We lost less than the other guys.” Here it can be viewed as managing a collection of keywords and/or ad groups to a high level financial target. You need to be tweaking that managed collection to maximize revenue.
Here are some tips on how to achieve this feat.
- Tip #1. Overspend on competitive terms. Your brand terms will be cheaper, so don’t overspend here. Overspend on head terms and general terms.
- Tip#2. Implement a range of conversion types; this will help indicate how well a keyword is performing. This will result in support for low-volume keywords by having more, lower cost conversions.
- Tip #3. Tune creative “snippets” (fragments of shared text). Creative text exists over thousands of ad groups, so how can you compare them? Walcott suggests exporting metrics and rolling up by these snippets. This is directional only; you must keep the comparison within the confines of the same ad group for a full test.
- Tip #4. Go Negative. Try to utilize your negative keywords properly so you ultimately end up with exact, phrase, and negative match keywords in your campaigns. If done correctly, broad matched terms should eventually be weeded out. (This should result in a higher ROI.)