CEOs, CMOs, and marketing leaders - it's time to audit your agencies paid search results.
I've had the pleasure of managing paid search budgets in budgets in excess of $100k+ month and found better revenue results when we scaled them down to $30k a month after cutting all the wasted spend.
Book a discovery call and let's do a deep dive into your paid acquisition strategy. We typically recover 30% - 70% of ad spend.
In the past 30 days I've audited 3 paid search accounts ranging from $125k monthly budgets down to $10k a month.
All of them are making the same fatal mistake. ?
They optimized for leads and a cost per lead metric.
CPL was anywhere from $10 - $500.
Even when tracked back to revenue they had some signs of success.
Agencies found ways to attribute revenue by taking credit for all revenue with a paid search touch point.
But when I dug deeper here's what I found ?:
- Branded made up a majority of the revenue (up to 80%) and yet non-branded searches accounted for 90% of ad spend.
- The payback period for paid search exceeded 50+ months.
- The payback period for non-branded search terms exceeded 29 years in some campaigns. ?
- Most of these accounts were structured with the help of Google reps or agencies following "best practices".
It's time to start having tough conversations with your agency about their performance - or lack thereof.
Paid search is a performance marketing direct-response channel.
You have the data to track it back to revenue and your agency should be doing this.
Get an agency that analyzes it by ad group AND keyword not just a cost per click metric and lead volume.
If you want to get serious about your revenue results from paid search - book a discovery call.