Your Bids Should Be Placed to Earn Maximum Profits Rather than Maximum ROI

In a continuation of our discussion regarding the myths surrounding the effects of Quality Score on your CPC with Google AdWords, we look at maximising your profits rather than worrying about trying to maximise your return on investment. Keep in mind that just because one or more of your keywords starts to make a profit, you are not going to earn brownie points because you are getting a higher ROI.

Your only goal should be to garner as much profitable traffic to each ad as you can, your bank balance is far more concerned with your making the highest possible profits and nothing else. This of course unless you have already reached maximum capacity, in which case you will need to pay more attention to the margin than the volume for each keyword.

Understanding the Theory

Many people do not understand this theory and they set a limit with regard to how much they are willing to pay per click for each keyword they use, no matter how much of a return they might see. In no way will this practice allow you or anyone else to reach maximum profit levels for any given keyword.

Instead, you need to optimise your ad content for your keyword and then work to match them to the ideal audience. When you do this, you should easily be able to significantly increase your bids, generate even more traffic and see massive jumps in both ROI and profits. While there is nothing wrong with doing your best to keep your CPC as low as possible, this shows that there is little point in wasting time trying to fool Google in believing your QS is actually higher than it is.

Of course if all you are interested in is the penny cheap bids, then you will need to pay more attention to your quality score. If you are more serious about making real profits with AdWords, you need to pay less attention to that perfect 10 QS with a 500 per cent ROI with almost no traffic and look at what you can accomplish by paying more per click.

If you look at the current Google algorithm, you will find that if you “overbid” and pay the full dollar for your bid, you are far more likely to see several thousand times the amount of traffic per ad. While this might make your individual ROI fall off the charts, when you multiply the new lower profits per click by the massive increase in the number of click-throughs you are getting, your profit levels will be through the roof.

How exactly does this work again? Your QS has gone from 10 all the way down to 4 and now Google wants you to pay more per click, a major disaster right? Wrong, Google now insists you pay 50 cents per click, but you are already paying the full dollar. What difference does the bottom number mean when you are already paying more and your profits are soaring?

There Is a Right Way to Increase Your Quality Score

Consider this, if you have been diagnosed as being obese, the right way to bring your weight back under control is to eat right, exercise and take better care of yourself.
The same thing applies to having a low quality score; you should do something about it. To do this there are a number of steps you can take that are not going to require mass expenses.

• Ensure your ads are not only compelling, but must connect solidly with your keyword. Your text must stand out from the crowd on the SERPS (Search Engine Result Pages)

• Never rest, you need to keep testing your ad copy and making improvements so that your ads are the ones that make money and not those of your competitors

• Adapt the messages in your ads to suit each of your targeted audiences as this will help you to “connect” with them more effectively

Once you have taken the time to do all of this, you can let your quality scores take care of themselves as long as they stay above 2. Keep a very close eye on your conversion rates as this will let you place your bids based on overall performance rather than wasting your time trying to bid as low as possible. Remember the perfect one dollar keyword is going to net you far more profits than a weak 50 cent one.