How To Run A Profitable Google Ads Campaign In 7 Easy Steps
“How to run a profitable Google Ads campaign?” is a common question business owners ask every day, because Google Ads is a great way to quickly waste a marketing budget unless you have some idea of what you’re doing.
So what are the 7 steps we’ll be covering?
- Conduct thorough keyword research
- Create targeted ad groups
- Optimize your ad copy and extensions
- Set a realistic budget and bidding strategy
- Design high-converting landing pages
- Implement and monitor negative keywords
- Continuously optimize and test your campaigns
Running a profitable Google Ads campaign can transform your business. It’s a reliable way to enhance your digital presence, drive qualified leads, and turn website traffic into substantial sales. The success stories are out there; businesses leveraging Google Ads see growth in both visibility and revenue.
The key is understanding the process step-by-step and executing it effectively. The right strategy will connect you with your target audience, convey your message clearly, and convince them to take action.
Let’s get started with the basics of a winning Google Ads campaign!
Step 1: Conduct Thorough Keyword Research
To run a profitable Google Ads campaign, the first and most crucial step is conducting thorough keyword research. This process involves identifying the best keywords that will connect you with your target audience and drive conversions.
Keyword Tools
Start by using keyword tools like Google Keyword Planner. This tool helps you find keywords related to your business and provides data on search volume and competition levels. By entering basic terms related to your product or service, you can discover a wealth of potential keywords.
Another useful tool is keywordtool.io. This tool generates a vast number of keyword ideas quickly, helping you identify negative keywords that you don’t want to target. It’s a must-have for refining your keyword list.
Competitor Analysis
Analyzing your competitors is a smart way to uncover profitable keywords. Tools like Semrush allow you to see which keywords your competitors are bidding on. Here’s how to do it:
- Plug your competitor’s URL into Semrush’s domain overview report.
- Click on “view full report” for “top paid keywords.”
- Filter the results to find the winning keywords:
- Include keywords with a competition level of 0.90 or higher.
- Focus on keywords with a search volume of 500 or higher.
- Select keywords that send your competitors more than 1% of their traffic.
By doing this, you can identify high ROI keywords that are already working for your competitors.
High ROI Keywords
Focus on keywords that offer a high return on investment (ROI). These are often more competitive (expensive) but worth the cost.
For example, if a keyword costs $25 per click but has a 40% conversion rate, it can generate significant profit for your business vs a cheaper, lesser converting keyword.
Example Calculation:
- $25 per click: 40 clicks = 16 conversions at $500 each = $8,000 gross profit.
- $13 per click: 76 clicks = 11 conversions at $500 each = $5,500 gross profit.
In this case, the higher-cost keyword generates more overall profit.
Summarizing Keyword Research
- Use keyword tools like Google Keyword Planner and keywordtool.io.
- Analyze competitors using Semrush to find profitable keywords.
- Focus on high ROI keywords that drive conversions and profit.
Step 2: Create Targeted Ad Groups
Creating targeted ad groups is essential for running a profitable Google Ads campaign. By organizing your ads into specific groups, you can ensure that your ads are shown to the right audience at the right time. Let’s explore some key strategies for creating effective ad groups.
Single Keyword Ad Groups (SKAGs)
A Single Keyword Ad Group (SKAG) focuses on one keyword per ad group. This approach allows you to create highly relevant ads and landing pages, improving your Quality Score and lowering your Cost Per Click (CPC).
For example, if you’re targeting “men’s running shoes,” you would create an ad group specifically for that keyword.
Benefits of SKAGs:
- Higher Relevance: Ads match the search intent more closely.
- Improved Quality Score: Google rewards relevance with better scores.
- Lower CPC: Higher Quality Scores generally lead to lower costs.
Geo-Modified Keywords
Geo-modified keywords include location-specific terms to target users in specific areas. This is especially useful for businesses with multiple locations or services in different regions. For instance, if you offer “interior decorating” in different cities, you can create ad groups like “San Diego interior decorator” and “Chicago interior decorator”
Example:
- Keyword: “Lexington appliance repair services”
- Ad Group: Focused on users searching for appliance repair services in Lexington, KY
Personalized Ads
Personalized ads are tailored to the specific needs and preferences of your target audience. By using the user’s location, search intent, and other relevant data, you can create ads that resonate more deeply with potential customers.
In keeping with our example above for our example of appliance repair service in Lexington, let’s put ourselves in the shoes of what our “searcher” might be thinking when they are looking for our services.
They are probably concerned about when someone can come service their appliance, the cost of the diagnosis, as well as the reputation of the repair company.
Our ads might take a more personalized approach by addressing these concerns/needs initially, even before someone clicks on the ad.
Tips for Creating Targeted Ad Groups
- Use SKAGs: Focus on one keyword per ad group for maximum relevance.
- Incorporate Geo-Modified Keywords: Target users in specific locations.
- Personalize Your Ads: Tailor your ad copy to the user’s intent and location.
By implementing these strategies, you can create highly targeted ad groups that drive better results. Next, we’ll explore how to optimize your ad copy and extensions to further enhance your campaign’s performance.
Step 3: Optimize Your Ad Copy and Extensions
Optimizing your ad copy and extensions is crucial for running a profitable Google Ads campaign. Well-crafted ads and useful extensions can dramatically improve your click-through rates (CTR) and conversions.
Let’s break it down step-by-step.
Ad Copy Tips
- Be Clear and Concise: Your ad should directly address what your customer is looking for. If someone searches for “24-hour flower delivery lilies,” your ad should say something like “Order Lilies Fast – 24-Hour Flower Delivery.”
- Include Keywords in Headlines: Make sure at least one of your keywords is in your ad headline. For example, if “digital cameras” is a keyword, your headline could be “Buy Digital Cameras Today.”
- Highlight Unique Selling Points: What sets your product or service apart? Mention special offers, free shipping, or unique features.
- Use a Strong Call to Action (CTA): Encourage users to take action with phrases like “Shop Now,” “Get a Quote,” or “Learn More.”
Ad Extensions
Ad extensions add extra information to your ads, making them more compelling and informative.
Here are some key types:
Callout Extensions
Callout extensions let you add short snippets of text to highlight additional features or benefits of your product or service. For example, “Free Shipping,” “24/7 Customer Support,” or “Money-Back Guarantee.”
Sitelink Extensions
Sitelink extensions add additional links to your ad, directing users to specific pages on your website. This can be particularly useful for e-commerce sites. For instance, you can include links to “New Arrivals,” “Best Sellers,” or “Customer Reviews.”
Price Extensions
Price extensions display your products or services along with their prices directly in your ad. This helps users see your offerings at a glance and can attract those who are ready to make a purchase.
Example of a Well-Optimized Ad
Let’s put it all together with an example:
By following these tips and using ad extensions effectively, you can create ads that are more likely to attract clicks and drive conversions.
Next, we’ll discuss how to set a realistic budget and bidding strategy to ensure your campaign remains profitable.
Step 4: Set a Realistic Budget and Bidding Strategy
Setting the right budget and bidding strategy is crucial for running a profitable Google Ads campaign.
Think of it like seasoning a dish: too little, and you won’t taste anything; too much, and it’s overwhelming.
Daily Budget
To find the sweet spot for your daily budget, start by estimating your monthly spend. You can do this by conducting keyword research and looking at industry benchmarks for cost-per-click (CPC) or cost-per-acquisition (CPA).
For instance, if you anticipate spending $1,000 per month:
- Divide your monthly budget by 30.4 (average days in a month).
- Daily Budget: $1,000 / 30.4 ≈ $32.89
This helps ensure your budget is spread evenly throughout the month, preventing early burnout or prolonged underperformance.
Bid Strategies
Google Ads offers various bid strategies to help you reach your goals, whether it’s maximizing clicks, impressions, or conversions.
Automated Bidding
Automated bidding uses Google’s AI to optimize your bids for each auction. It’s like having an experienced chef adjust the seasoning for you. There are different automated strategies, but one of the most popular is:
- Maximize Conversions: This strategy adjusts bids to get the most conversions within your budget. It’s ideal if you have conversion tracking set up and want to focus on driving actions like sales or sign-ups.
Pro Tip: Automated bidding is great for beginners. It’s like having an expert snowboarder pick your gear when you’re new to the slopes. As you gain experience, you can switch to more customized strategies.
Extra Pro Tip: Always start with a traffic campaign for clicks. We need to aggregate a lot of data before we can start refining our strategy and getting a bunch of clicks to the site is the fastest way to do that. Once we start getting a good number of conversions from this campaign (at least 30), then we can switch bidding strategies and tell Google we want to Maximize Conversions since Google is now familiar with what a “conversion” for us is.
If we start with a Maximize Conversions campaign without any historical data, our campaign will take forever to get up to speed since Google will be guessing on which behaviors, demographics, and keywords lead to a conversion for us.
Manual Bidding
Manual bidding gives you more control over each bid. It’s like adjusting the seasoning yourself, requiring a bit more expertise but allowing for finer tuning. You can set bids at the keyword level, which can be beneficial if you know which keywords perform best.
- Enhanced CPC (ECPC): This is a semi-automated strategy where Google adjusts your manual bids to help you get more conversions while trying to keep your cost-per-conversion the same as you set manually.
Balancing Act
Finding the right balance between automated and manual bidding can be tricky. Start with automated strategies to gather data and then gradually incorporate manual adjustments as you learn what works best for your campaign.
Real-World Example
A leading e-commerce business selling women’s fashion used a budget of $10,600 across Google Ads and Meta platforms. By starting with automated bidding strategies like Maximize Conversions, they were able to gather data and optimize their campaigns effectively, resulting in over $110,000 in revenue generated for their business.
By setting a realistic daily budget and choosing the right bidding strategy, you can ensure your Google Ads campaign is both cost-effective and more importantly, profitable.
Next, let’s dive into designing high-converting landing pages to maximize the impact of your ads.
Step 5: Design High-Converting Landing Pages
Designing high-converting landing pages is crucial for turning clicks into customers. Your landing page is where potential customers decide whether to take action or leave.
Here’s how to make it count:
Keep It Simple
Simplicity is often the winner when it comes to landing page design. A cluttered page can overwhelm visitors and drive them away. Focus on one primary action you want the user to take.
The more friction you add to the CTA, the less conversions you’ll have. We need to make the action easy and uncomplicated.
An example of this would be having a form that asks for name, email, and phone number vs a 12-step form that asks for way too much information. You’ll end up losing people by making it too difficult and complicated.
Use Psychological Principles
Leverage psychological principles like the deictic gaze to guide users. The deictic gaze suggests that people tend to look where others are looking or pointing. Including images of people looking at or pointing to your call-to-action (CTA) can increase engagement.
Example: A landing page with a person pointing to the “Sign Up” button can significantly increase conversions.
Clear Call to Action
Your CTA should be unmissable. Use contrasting colors to make it stand out. For instance, blue buttons are often used because blue creates a feeling of trust and security. Make sure your CTA tells users exactly what to do and what they’ll get in return.
Example: “Order lilies fast – 24-hour flower delivery” is a clear, direct CTA that tells users what they can expect.
Speed and Clarity
A slow or confusing landing page will make users bounce. Ensure your page loads quickly and is easy to navigate. Remove any unnecessary elements and use white space to keep the design clean.
Fact: Reducing your landing page’s average load time can improve user experience and increase conversions. Check your website/landing page load speed with Google PageSpeed Insights. This tool will tell you (or your developer) what needs to be changed in order to speed your website up.
A/B Testing
Always test different versions of your landing page to see what works best. Use tools like VWO for A/B testing. Compare elements like headlines, images, and CTA buttons to find the most effective combination.
Case Study: A company tested two landing page designs and found that a simpler design with a clear CTA increased conversions by 20%.
By following these principles, you can create high-converting landing pages that maximize the impact of your Google Ads campaign.
Next, let’s explore how to implement and monitor negative keywords to further refine your campaign.
Step 6: Implement and Monitor Negative Keywords
To run a profitable Google Ads campaign, you must focus on negative keywords. These are terms that prevent your ads from showing up in irrelevant searches, saving your budget for the clicks that matter. This is arguably the most important factor in running a profitable Google Ads campaign. Without monitoring negative keywords, you might just end up paying for expensive traffic.
Why Negative Keywords Matter
Negative keywords help you avoid wasting money on clicks that won’t convert. For example, if you sell luxury watches, you don’t want your ad to appear for searches like “cheap watches.” By adding “cheap” as a negative keyword, you ensure your ad only shows to potential customers looking for premium products.
Monitoring with Search Terms Report
The search terms report in Google Ads is another invaluable resource. It shows the actual search terms (not keywords) people used when they clicked on your ads. Regularly review this report to catch irrelevant terms and add them to your negative keywords list.
Pro Tip: Check the search terms report daily in the first week of your campaign. This helps you quickly refine your negative keyword list and optimize your budget.
Practical Example
Imagine you’re running an ad campaign for a high-end women’s fashion store. You start by adding obvious negative keywords like “cheap,” “discount,” and “free.” After a few days, you check the search terms report and notice clicks from terms like “DIY fashion” and “fashion for teens.” These terms are not relevant to your luxury brand, so you add them to your negative keyword list.
By carefully managing negative keywords, you can significantly improve the efficiency of your Google Ads campaign.
Next, let’s look at how to continuously optimize and test your campaigns for ongoing success.
Step 7: Continuously Optimize and Test Your Campaigns
Once your Google Ads campaign is live, the work doesn’t stop. To run a profitable Google Ads campaign, you must continuously optimize and test your campaigns. This helps you get the best results and the highest return on investment (ROI).
Let’s break down how to do this effectively.
A/B Testing
A/B testing, also known as split testing, involves comparing two versions of an ad to see which one performs better. You can test different elements like headlines, images, and call-to-action buttons.
For example, you might run two ads with different headlines:
- Ad A: “Buy Luxury Watches Online”
- Ad B: “Exclusive Luxury Watches for You”
After running both ads for a few weeks, you can check which one gets more clicks and conversions. This method helps you understand what resonates best with your audience.
Performance Tracking
To ensure your campaigns are profitable, you need to track their performance continuously. Use Google Ads’ built-in analytics to monitor key metrics such as click-through rate (CTR), conversion rate, and cost per conversion.
Tips for Effective Performance Tracking:
- Set Up Conversion Tracking: This allows you to see what happens after a user clicks your ad. Do they make a purchase, fill out a form, or sign up for a newsletter?
- Use Smart Bidding: Strategies like Maximize Conversions can help you get the most out of your budget by automatically adjusting bids.
- Review Reports Regularly: Check your user locations report to see where your ads are performing well and where they aren’t. Adjust your targeting accordingly.
By following these steps, you can continuously optimize and test your campaigns to ensure they remain effective and profitable.
Conclusion
We’ve covered the essential steps to run a profitable Google Ads campaign:
- Conduct thorough keyword research
- Create targeted ad groups
- Optimize your ad copy and extensions
- Set a realistic budget and bidding strategy
- Design high-converting landing pages
- Implement and monitor negative keywords
- Continuously optimize and test your campaigns
By following these steps, you can create a Google Ads campaign that not only attracts clicks but also drives conversions and maximizes your return on investment (ROI).
Limestone Digital: Your Partner in Digital Success
At Limestone Digital, we specialize in tailored digital solutions that address your unique business needs. Our team of experts understands the intricacies of Google Ads and is dedicated to helping you achieve your advertising goals.
We believe in building strong client relationships. This means working closely with you to understand your business, your audience, and your objectives. Our collaborative approach ensures that we create and manage campaigns that drive real results.
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- Tailored Solutions: Every business is unique. We provide customized strategies that align with your goals.
- Expertise: Our team is well-versed in the latest trends and best practices in PPC management.
- Client Relationships: We value our clients and strive to build long-term partnerships based on trust and mutual success.
- Revenue Growth: Our primary goal is to help you grow your revenue through effective and efficient advertising campaigns.
By partnering with Limestone Digital, you can ensure that your Google Ads campaigns are set up for success from the start.
Let’s work together to turn clicks into customers and drive your business forward.
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