PPC Explained

A well-run Internet Marketing Pay-Per-Click (PPC) advertising campaign is the fastest, most controlled way to ramp up your online business revenues while maintaining and controlling your return on investment (ROI).

Targeting prospects with the right ad copy for the right keywords that they’re searching for is key to the success of any PPC campaign. Setting your goals and understanding how to track the success of those goals is essential for knowing how well this marketing channel is working for your business.

Often Pay-Per-Click (PPC) Campaigns focus on very different goals and metrics.

Two primary examples are “Brand Centric” vs. “Return on Ad Spend (ROAS) Centric”

1) Brand Centric

The purpose here is brand awareness and customer acquisition. Generally this approach aims to get your company and logo visible to your target audience. These efforts may include PPC, display campaigns, and social media. Generally with this particular goal, you can spend more than you make, or just break even. The purpose of this goal is to increase your brand awareness.

2) Return on Ad Spend (ROAS) Centric

The second method of running PPC is ROAS Centric. This is the type that RhinoFish Media predominately focuses on. The main business objective here is to optimize profit. We start by learning your margins, and then mutually determine the ROAS goal based on those margins.

Sometimes the overall account wide ROAS goal includes a hybrid of both of the examples mentioned above.

Here’s a ROAS example:

If we determine that 5.0x is our overall goal for a particular client, and after a month, we have the following data:

Spend = $5,900
Revenue = $32,450
Revenue / Spend = ROAS
$32,450 / $5,900 = 5.5x

This means we were successful in exceeding our goal to generate $5.00 revenue for every dollar spent.

If you’re interested in taking the ROAS Centric approach to your pay per click marketing channel, then contact us today for a free site review.