Pay per click advertising is tedious work. You have to ensure that every keyword you invest in pays its way. How do you do that? Today, I’m going to share with you a simple though not perfect way to find unprofitable keywords that you can eliminate from your inventory.
In order to use this method of keyword management you have to establish some history. That means you must run a PPC campaign and take notes.
What you are looking for are low-level keywords that you invest a lot of money in but don’t see a return on. Those are the keywords you want to eliminate from your inventory. The way you do that is by tracking click-throughs and conversions on your keywords and establishing categories to manage them properly.
Your keyword categories are:
- High Click-Through, Low Conversion – These keywords get a lot of click-throughs but result in low or no conversions.
- Low Click-Through, Low Conversion – The bottom of the barrel, these keywords don’t do a lot for you at all.
- Low Click-Through, High Conversion – While these keywords don’t result in many click-throughs, they do have a high conversion rate relative to click-throughs.
- High Click-through, High Conversion – This is your workhorse category.
Obviously, you want to keep that last category of keyword. It’s making you money, but it may not be your most profitable category. After all, you have a high investment. It’s possible to actually be losing money on these keywords and still benefit from them as a branding element. However, your low click-through, high conversion category could be very profitable. You want to keep those keywords too.
The other two categories are a little more tricky. The high click-through, low conversion category is the unprofitable one. Those are the keywords you want to eliminate. They’re costing you money.
The final category – low click-through, low conversion – may or may not be unprofitable. Since the click-throughs are low you aren’t investing a lot, however, you’re not gaining a lot on your conversions either. You want to tinker with this category and see if you can’t find a way to make them more profitable.
This isn’t a perfect PPC management strategy, but it will help you identify unprofitable keywords that you can segment and eliminate quickly.