Are You Starving Your MSP’s Pay-Per-Click Campaigns?
Is Google telling you that you don’t have enough budget to run your ads? Unfortunately there are negative consequences to not having enough budget to fund your campaigns. Here are some steps you can take to keep your PPC running when you don’t have enough budget.
How To Determine a PPC Budget For Your MSP
When deciding whether to run a PPC campaign to generate leads for your MSP, the first question is, “how much will it cost?” While it is tempting to develop a complicated formula, the simplest method to determine this is by deciding how much a lead is worth to you. For example, if a sale generates $1,000 a month in revenue, you should be willing to pay at least that much to acquire a lead.
The next thought concerning an investment in PPC is usually, “if I pay $1,000 to run ads and I get a client who generates $1,000 in revenue, then I’m just breaking even! What’s the point?” The answer to this question is that the goal of advertising your MSP isn’t to obtain only one lead. Even if you only close two sales, that’s an additional $1,000 you didn’t have before you started running your ads.
One thing to remember is the primary goal of your marketing is to bring the services you provide as an MSP to the attention of businesses that may need your services. The next important thing to consider is that marketing, including online marketing, can take time. It is essential to not only adequately fund your Google Ads but invest in them over time because an ad needs to be seen several times before it can break through the noise and enter the consciousness of potential customers.
Your PPC success is intrinsically linked to how much you spend, as well as how long you spend it.
How Too Low of a Budget Prevents PPC Success
It’s important to understand that Google Ads operates under an auction model, in other words, a bidding system. While having the highest bids doesn’t necessarily guarantee your ads will be shown more often, it is undoubtedly a core part of Google’s determination. Known as ad quality, this determination is determined by several metrics, including your landing pages, keywords, ad headlines, and more. If, for example, you and your competitors have the same overall ad quality, your budget can and does affect your campaigns' success.
An insufficient budget will limit your ability to win bids against your competitors on the keywords and search terms your campaigns generate leads for. Further, a low budget will result in your ad(s) having a reduced impression share (impressions are the number of times an ad is shown). It should be evident that the lower the number of times your ads are displayed, the lower their opportunity to be offered to potential leads.
Additionally, if for example your daily budget is $20, and the top performing keyword is $18, once you bid on that keyword, your budget for the day is spent. This means that Google will stop running your ads, until the next day. Marketing has always been driven by volume, the more people who see your ad, the greater the chance you will have to make a sale. If your ads are one and done, you have greatly reduced your chance to make an impression into the mindset of your audience.
Impression share is significant because the more your ad is shown and clicked on, the more abundant and accurate the data Google receives. As Google relies upon data to determine most of your campaign goals, this data is used to optimize your campaigns, making them more successful. Ironically, the more optimized your campaigns are, the less expensive it can be to run your ads over time. Any way you examine it, your budget is the primary driver of your Google ad success, and unfortunately, its failure.
What To Do If I Can’t Increase My Budget?
First, we don’t want you to have the impression that PPC isn’t worth it, that it doesn’t work, or is a hardship. PPC does work and can generate leads. However, it isn’t for everyone, and it’s often one of the least cost-effective ways to market yourself, depending on your area. As we noted, if you cannot fully fund your campaigns, chances are you’re not going to see the results you’re hoping for. Here are some tips to consider if you’re determined to give PPC a try, even with a reduced budget.
- Run ads only on specific days and hours
- When your ads are under budget, they will often run out of money before the end of the day, causing Google to stop running them until the next day. As you can imagine, not having your ads shown from noon until 9 am the following day leaves many opportunities on the table. If you can’t push your budget, then the next best thing you can do is take charge of when your ads are being shown. Instead of letting Google decide when to stop your ads from showing, you can determine what time and day of the week your ads have the best chance to convert.
- Limit the locations your ads will show
- After you have determined your ad schedule, the next step is to consider where your ads are being shown. While having your ads displayed in as many locations as possible increases reach and brand recognition, doing so can increase your expense. By targeting your ads to a local audience, you can get those most likely interested in your services.
- Buttress your paid ads with SEO and social media
- The goal of marketing is to have your MSP enter your audience's consciousness, but it can come with a price. Instead of relying solely on PPC to develop name recognition or to drive traffic to your website, use your SEO and social media to gain the attention of potential customers.
Don’t Stop Marketing Your MSP
If you’ve reached your budget limit and can’t invest any more resources into PPC but aren’t seeing a return on investment, it’s ok to focus your efforts elsewhere. PPC makes sense when you are already generating leads and have the means to expand your marketing resources. The reality is most businesses turn to PPC out of desperation for leads, often when they are at their financial weakest and unable to maintain their investment.
Investing in PPC without fully understanding what it requires to maintain progress often leads to an MSP setting themselves up for failure and believing that marketing doesn’t work. That being said, don’t toss in the towel on marketing your MSP.
Even if you haven’t had the success you hoped for with PPC, you have other marketing options. Most importantly, these options can be implemented without the financial commitment PPC requires. We are confident you can market your MSP on a budget and see good results. However, these require you to invest some time to do so. If you’re unsure how to start your marketing journey, here are some tips to help you get started.
Are you concerned about the value of social media? Here are the answers to excuses MSPs have about social media. Not sure if SEO can move the needle? Here are some reasons why SEO doesn’t work for MSPs and how to make it work for you. Finally, if you’re not sure precisely what MSP marketing is, here’s a primer to help you better understand what marketing can achieve for lead generation.
Do You Need Help Marketing Your Services?
While you can market your MSP on your own, it’s essential to recognize that you don’t have to go it alone. We can help your MSP create a marketing campaign to generate the leads you need to grow your business. We offer services to develop your content, drive traffic to your website, and transform your website into a lead-generation tool without the investment of PPC. Contact us today to learn more about our MSP marketing solutions.