With many Pay Per Click (PPC) campaigns one of the most frequently asked questions is, “Should we be promoting all of our products through paid search?” The answer is no!
First, companies must take a deeper look into the relationship between Sales Velocity and Margin which equals Return On Investment (ROI). (See Chart Below) By identifying where each company’s products fall under the following four sections: (High Margin, Low Sales Velocity) (High Margin, High Sales Velocity) (Low Margin, Low Sales Velocity) and (Low Margin, High Sales Velocity) they will be able to design specific PPC campaigns for each segment in the chart.
For a High Margin, Low Sales Velocity, companies should refresh their keyword list regularly, utilize time bound promotions to boost sales, and experiment with ad copies and landing pages. Companies can use long tail keywords with more descriptive words to help generate more targeted searches. Ex. (Car Dealership or Designer Furniture Companies)
For High Margin, High Sales Velocity, companies should focus on efficiency and growth, controlled keyword list expansion, and identify new sources for keywords. (Tablets or iPhone)
For Low Margin, High Sales Velocity, companies should figure out their average order value, the order margin, and number of inventory turnovers. Here companies should have high impact keywords that draw attention to the ads. Since there is a low margin, there is very little room to experiment or be creative with ad campaigns. Ex. (BIC Pens)
For Low Margin, Low Sales Velocity, companies should not be utilizing any PPC campaigns and should instead be evaluating of keyword search advertising is right for them. (Specialized trinkets like keychains)
-The NetElixir Team