Tuesday, February 28, 2017

Facebook Ad Benchmarks for YOUR Industry [New Data]

Facebook is one of the fastest growing ad networks – in fact, the number of advertisers using Facebook has more than doubled in the last 18 months.

If you’re one of the 2 million advertisers who started advertising on Facebook in the past 2 years, you may have found that it can be easy to get overwhelmed on the new platform. Facebook has nearly countless ad targeting options to explore, and performance differs for every client. Just like on AdWords, performance can differ across different industries on Facebook, so what numbers should you be looking to beat in your industry?

We dug into our data to find out! Check out the Facebook ad performance benchmarks our clients are seeing, including:

  • Average Click-Through Rate (CTR) on Facebook by industry
  • Average Cost per Click (CPC) on Facebook by industry
  • Average Conversion Rate (CVR) on Facebook by industry
  • Average Cost per Action (CPA) on Facebook by industry

You’ll find averages across these Facebook metrics for eighteen industries: Apparel, Auto, B2B, Beauty, Consumer Services, Education, Employment & Job Training, Finance & Insurance, Fitness, Home Improvement, Healthcare, Industrial Services, Legal, Real Estate, Retail, Technology, and Travel & Hospitality. Let’s dig in!

Average Click-Through Rate on Facebook

average click through rate for facebook ads

Legal advertisers may struggle with low click-through rates on the SERP, but they’re lucky to have the highest CTRs on Facebook (1.61%). No doubt, it can be hard to impress the prospective client looking for a lawyer when your ad is one among seven ads on the SERP, but a lawyer’s high-value offer and call to action certainly stands out more when it’s standing alone on a prospect’s social feed.

Other advertisers with high CTRs are in the retail (1.59%), apparel (1.24%), beauty (1.16%), and fitness (1.01%) industries. It’s no surprise that these industries often feature models and high-quality images in their ads, and those ads perform particularly well on highly visual platforms like Facebook and Instagram.

You have to be pretty crafty to distract potential job hunters from their social feeds, and employment & job training services can have relatively low CTRs on Facebook (0.47%). Facebook and Instagram may not be the network for job seekers, but LinkedIn may have promise for these advertisers!

Average Cost Per Click (CPC) on Facebook

average facebook cost per click

Even though financial advertisers have the highest CPCs on Facebook at $3.77 per click, advertisers may still be quite satisfied with that CPC on Facebook. The terms “Insurance,” “Loans,” and “Mortgage” are the three most expensive keywords on Google, each costing about $50 per click.

The cheapest clicks on Facebook are reserved for the apparel ($0.45 per click), travel and hospitality ($0.63) and other retailers ($0.70) industries, with clicks well below a dollar. These industries often have the largest audiences so even at these low CPCs, it’s important to understand how to manage your budgets so that your Facebook costs don’t run amok.

Average Conversion Rates on Facebook

average conversion rate on facebook ads

Fitness studios have plenty to sweat about, but finding prospects on Facebook doesn’t appear to be one of them! Facebook can connect driven prospects into the hands of fitness advertisers and help them convert at remarkably high rates, averaging 14.29% conversion rates from Facebook ads.

Other industries with high CVRs are education (13.58%), employment & job training (11.73%), healthcare (11.00%), real estate (10.68%) and B2B (10.63%). Facebook’s unique lead generation ads help these industries outperform most other ad platforms!

However, industries such as retail, travel & hospitality, and technology may not benefit as much from Facebook’s lead generation ads and consequently have much lower conversion rates (3.26%, 2.82%, and 2.31%, respectively). For these advertisers, remarketing on Facebook may be particularly powerful to help improve conversion rates. As it turns out, exposure to remarketing ads can help increase conversion rates over time!

Average Cost Per Action on Facebook

average cpa on facebook

With an average CPA of $7.85, nearly all education advertisers agree that it’s a smart decision to cater to Facebook and Instagram’s relatively young audience. While Facebook may be a great place to find your new students, it can be an expensive place to find a new car, architect, or IT specialist – average Facebook CPAs for auto, home improvement, and technology services are $43.84, $44.66, and $55.21, respectively. Of course, the lifetime value of a new client in these industries is very high, making it all worthwhile in the end.

What Does It All Mean?

Facebook advertising is really taking off because it offers an abundance of opportunity for advertisers of nearly all industries. If you’re not advertising on Facebook, try running our Facebook Opportunity Calculator to see how your ads could potentially perform on Facebook.

If you find yourself on the lower end of these numbers, that just means there’s plenty of room for improvement! To learn how to improve your ads on Facebook, visit PPC University or call us to speak with a Facebook expert today. If you’re hitting these benchmarks – don’t stop and settle for average either! Always strive to be a unicorn by writing the best ad copy and creating landing page unicorns that convert better than anyone else!

Check out the full infographic below:

facebook ad performance benchmarks

Data Sources

This report is based on a sample of 256 US-based WordStream client accounts in all verticals (representing $553,000 in aggregate Facebook spend) who were advertising on Facebook between November 2016 and January 2017. Facebook campaigns can have several different objectives, so only Facebook campaigns with the objective of driving conversions were considered when determining average CVR and CPA numbers. Average figures are median figures to account for outliers. All currency values are posted in USD.

About the author

Mark is a Data Scientist at WordStream with a background in SEM, SEO, and Statistical Modeling. Follow him on Twitter, LinkedIn, and Google +.

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Facebook Power Words, Avoiding PPC Rip-Offs, & Other Top Stories from February

Every month, I try to come up with novel ways to essentially say the same thing – “Phew, what a month!”

Best of the WordStream blog February 2017

So, rather than try to dazzle you with witty wordplay or amusing anecdotes, all I’ll say is that some of the content on the WordStream blog this month was quite literally unmissable. From secret, arcane words of power you can use in your Facebook ads to drive even more leads and sales, to a cautionary tale from Larry about avoiding PPC service providers ripping you off, here’s what struck a chord with our readers in February.

1. 7 Power Words & Phrases to Test in Your Facebook Ads

If only there were some magical combination of words that could help you harness the power of Facebook Ads even more effectively. Fortunately, there is – and you don’t need to embark upon an epic quest to obtain it. All you have to do is read our most popular blog post of the month, courtesy of Brad!

2. 8 Facebook Ad Tools to Help You Increase Leads and Sales

Now that you’ve learned of the ancient power words you can and should be testing in your Facebook campaigns, it’s time to turn to the various tools of the trade that the most successful Facebook advertisers use in their campaigns, which is exactly what yours truly does in this post.

 WordStream Social Ads screenshot

3. 5 Tips to Personalize Your Marketing (Without Looking Like a Creep)

Let’s face it – personalized marketing can come off as (more than) a little creepy, which is why it’s so important to balance personalization – and the sweet, sweet user data that comes with it – with the needs and expectations of your target audience. Luckily for you, The Drum’s Lisa Lacy knows more than a thing or two about this precarious balancing act, and she shares this valuable knowledge in this post.

4. 6 Ways to Lower Your CPC with Landing Page Optimization

Every PPC advertiser wants lower CPCs, and sometimes, it’s hard to see how to improve campaigns that have already been thoroughly optimized – but have you taken a look at your landing pages lately? In this post, Ivan Kreimer shows you six ways you can lower your CPCs by further optimizing your campaign’s landing pages.

5. NEW: Tailor Ads by Device or Audience with AdWords IF Functions

If you’re familiar with the Internet of Things (or computer programming), you may be familiar with “IF” functions. Essentially, these functions allow you to set parameters in your ads to display certain things IF certain conditions are met; “IF this happens, THEN something else happens.” It’s not nearly as complicated or ambiguous as I’ve made it sound, though, so read this excellent explainer post by Allen to get up to speed on AdWords’ IF functions quickly.

 AdWords IF Function explanatory gif

6. 5 Luxury Marketing Strategies to Increase Conversions (At The Right Price)

How do you market to individuals who seemingly have everything? This is the dilemma facing marketers of luxury goods, and it’s not nearly as easy to sell luxury items to wealthier people as it might sound. In this post, Allen outlines five luxury goods marketing strategies you can start using in your own campaigns, and explains why “Gucci doesn’t do infomercials for tiger-print duffels.”

7. How to Use Brand Affinity to Dramatically Increase CTR

Brand affinity is one of the most powerful motivators for your audience, but attaining it is another matter entirely. However, you don’t need to be one of the best-known brands in the world to leverage brand affinity and lower CTRs – you just need a strategy, and who better to offer you the tips and techniques you need to succeed than Larry Kim?

8. How to Tell If Your PPC Provider Is a Huge Rip-Off

Everyone’s had a negative experience with a retailer or service provider, but choosing the wrong PPC provider can be nothing short of completely disastrous. Unfortunately, many of the shadier shops out there do a decent job of hiding their intentions to leave you high and dry, so how can you tell whether your PPC provider is a rip-off? By following these tips by Larry Kim, that’s how. Ignore at your financial peril.

 PPC pricing models how to avoid being ripped off

9. 4 Super-Effective Content Syndication Strategies for Bloggers

Content syndication can be awesome for bloggers and content producers, but establishing relationships with industry publications, buttering up editors, and generally making in-roads with the venues you want to publish your stuff can be tricky, especially for newcomers. If you’re looking to broaden your audience, follow these strategies for content syndication by Larry, whose content has been syndicated in many major publications.

10. How to Use Answer the Public to Earn Featured Snippets

Featured Snippets – AKA Position Zero – are among the most coveted pieces of SERP real estate there are, but how do you ensure your content is placed in this envious spot? By using Answer the Public to provide timely, relevant answers to common searches. Find out everything you need to know about this unconventional tactic in our final post of this month’s round-up, courtesy of Klipfolio’s Jonathan Taylor.

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How to Create Content That Keeps Earning Links (Even After You Stop Promoting It)

Posted by kerryjones

Do your link building results look something like this?

  1. Start doing outreach
  2. Get links
  3. Stop doing outreach
  4. No more links

Everyone talks about the long-term benefits of using content marketing as part of a link building strategy. But without the right type of content, your experience may be that you stop earning links as soon as you stop doing outreach.

In this sense, you have to keep putting gas in the car for it to keep running (marketing “gas” = time, effort, and resources). But what if there was a way to fill up the car once, and that would give it enough momentum to run for months or even years?

An example of this is a salary negotiations survey we published last year on Harvard Business Review. The study was picked up by TechCrunch months after we had finished actively promoting it. We didn’t reach out to TechCrunch. Rather, this writer presumably stumbled upon our content while doing research for his article.

techcrunch-link.png

So what’s the key to long-term links? Content that acts as a source.

The goal is to create something that people will find and link to when they’re in need of sources to cite in content they are creating. Writers constantly seek out sources that will back up their claims, strengthen an argument, or provide further context for readers. If your content can serve as a citation, you can be in a good position to earn a lot of passive links.

Read on for information about which content types are most likely to satisfy people in need of sources and tips on how to execute these content types yourself.

Original research and new data

Content featuring new research can be extremely powerful for building authoritative links via a PR outreach strategy.

A lot of the content we create for our clients falls under this category, but not every single link that our client campaigns earn are directly a result of us doing outreach.

In many cases, a large number of links to our client research campaigns earn come from what we call syndication. This is what typically plays out when we get a client’s campaign featured on a popular, authoritative site (which is Site A in the following scenario):

  • Send content pitch to Site A.
  • Site A publishes article linking to content.
  • Site B sees content featured on Site A. Site B publishes article linking to content.
  • Site C sees content featured on Site A. Site C publishes article linking to content.
  • And so on…

So, what does this have to do with long-term link earning? Once the content is strategically seeded on relevant sites using outreach and syndication, it is well-positioned to be found by other publishers.

Site A’s content functions as the perfect citation for these additional publishers because it’s the original source of the newsworthy information, establishing it as the authority and thus making it more likely to be linked to. (This is what happened in the TechCrunch example I shared above.)

Examples

In a recent Experts on the Wire podcast, guest Andy Crestodina talked about the “missing stat.” According to Andy, most industries have “commonly asserted, but rarely supported” statements. These “stats” are begging for someone to conduct research that will confirm or debunk them. (Side note: this particular podcast episode inspired this post – definitely worth a listen!)

To find examples of content that uncovers a missing stat in the wild, we can look right here on the Moz blog…

Confirming industry assumptions

When we did our native advertising versus content marketing study, we went into it with a hypothesis that many fellow marketers would agree with: Content marketing campaigns perform better than native advertising campaigns.

This was a missing stat; there hadn’t been any studies done proving or debunking this assumption. Furthermore, there wasn’t any publicly available data about the average number of links acquired for content marketing campaigns. This was a concrete data point a lot of marketers (including us!) wanted to know since it would serve as a performance benchmark.

Screen Shot 2017-02-27 at 1.16.47 PM.png

As part of the study, we surveyed 30 content marketing agencies about how many links the average content marketing campaign earned, in addition to other questions related to pricing, client KPIs, and more.

After the research was published here on Moz, we did some promotion to get our data featured on Harvard Business Review, Inc, and Marketing Land. This data is still being linked to and shared today without us actively promoting it, such as this mention on SEMRush’s blog and this mention on the Scoop It blog (pictured below).

scoop-it-citation.png

To date, it’s been featured on more than 80 root domains and earned dozens of co-citations. It’s worth noting that this has been about far more than acquiring high-quality links; this research has been extremely effective for driving new business to our agency, which it continues to do to this day.

Debunking industry assumptions

But research doesn’t always confirm presumptions. For example, Buzzsumo and Moz’s research collaboration examined a million online articles. A key finding of their research: There was no overall correlation between sharing and linking. This debunked a commonly held assumption among marketers that content that gets a lot of shares will earn a lot of links, and vice versa. To date, this post has received an impressive 403 links from 190 root domains (RDs) according to Open Site Explorer.

How to use this strategy

To find original research ideas, look at how many backlinks the top results have gotten for terms like:

  • [Industry topic] report
  • [Industry topic] study
  • [Industry topic] research

Then, using the MozBar, evaluate what you see in the top SERPs:

  • Have the top results gotten a sizable number of backlinks? (This tells you if this type of research has potential to attract links.)
  • Is the top-ranking content outdated? Can you provide new information? (Try Rand’s tips on leveraging keywords + year.)
  • Is there a subtopic you could explore?

Additionally, seeing what has already succeeded will allow you to determine two very important things: what can be updated and what can be improved upon. This is a great place to launch a brainstorm session for new data acquisition ideas.

Industry trend and benchmark reports

Sure, this content type overlaps with “New Research and Studies,” but it merits its own section because of its specificity and high potential.

If your vertical experiences significant change from one year, quarter, or month to the next, there may be an opportunity to create recurring reports that analyze the state of your industry. This is a great opportunity to engage all different kinds of brands within your industry while also showcasing your authority in the subject.

How?

People often like to take trends and add their own commentary as to why trends are occurring or how to make the most of a new, popular strategy. That means they’ll often link to your report to provide the context.

And there’s an added promotional benefit: Once you begin regularly publishing and promoting this type of content, your industry will anticipate future releases.

Examples

HubSpot’s State of Inbound report, which features survey data from thousands of HubSpot customers, has been published annually for the last eight years. To date, the URL that hosts the report has links from 495 RDs.

Content Marketing Institute and MarketingProfs have teamed up for the last seven years to release two annual content marketing benchmark reports. The most recent report on B2B content marketing has earned links from 130 RDs. To gather the data, CMI and MarketingProfs emailed a survey to a sample of marketers from their own email marketing lists as well as a few lists from partner companies.

http://ift.tt/2cV19Ek

In addition to static reports, you can take this a step further and create something dynamic that is continually updated, like Indeed’s Job Trends Search (171 RDs) which pulls from their internal job listing data.

How to use this strategy

Where can you find fresh industry data? Here are a few suggestions:

Survey your customers/clients

You have a whole pool of people who have been involved in your industry, so why not ask them some questions to learn more about their thoughts, needs, fears, and experiences?

Talking directly to customers and clients is a great way to cut through speculation and discover exactly what problems they’re facing and the solutions they’re seeking.

Survey your industry

There are most likely companies in your industry that aren’t direct competitors but have a wealth of insight to provide to the overall niche.

For example, we at Fractl surveyed 1,300 publishers because we wanted to learn more about what they were looking for in content pitches. This knowledge is valuable to any content marketers involved in content promotions (including ourselves!).

Ask yourself: What aspect of your industry might need some more clarification, and who can you reach out to for more information?

Use your internal company data

This is often the easiest and most effective option. You probably have a ton of interesting data based on your interactions with customers and clients that would benefit fellow professionals in your industry.

Think about these internal data sets you have and consider how you can break it down to reveal trends in your niche while also providing actionable insights to readers.

Curated resources

Research can be one of the most time-consuming aspects of creating content. If someone has pulled together a substantial amount of information on the topic in one place, it can save anyone else writing about it a lot of time.

If you’re willing to put in the work of digging up data and examples, curated resource content may be your key to evergreen link building. Let’s look at a few common applications of this style of content.

Examples

Collections of statistics and facts

Don’t have the means to conduct your own research? Combining insightful data points from credible sources into one massive resource is also effective for long-term link attraction, especially if you keep updating your list with fresh data.

HubSpot’s marketing statistics list has attracted links from 963 root domains. For someone looking for data points to cite, a list like this can be a gold mine. This comprehensive data collection features their original data plus data from external sources. It’s regularly updated with new data, and there’s even a call-to-action at the end of the list to submit new stats.

Your list doesn’t need to be as broad as the HubSpot example, which covers a wide range of marketing topics. A curated list around a more granular topic can work, too, such as this page filled with mobile email statistics (550 RDs).

Concrete examples

Good writers help readers visualize what they’re writing about. To do this, you need to show concrete evidence of abstract ideas. As my 7th grade English teacher used to tell us: show, don’t tell.

By grouping a bunch of relevant examples in a single resource, you can save someone a lot of time when they’re in need of examples to illustrate the points they make in their writing. I can write thousands of words about the idea of 10x content, but without showing examples of what it looks like in action, you’re probably going to have a hard time understanding it. Similarly, the bulk of time it took me to create this post was spent finding concrete examples of the types of content I refer to.

The resource below showcases 50 examples of responsive design. Simple in its execution, the content features screenshots of each responsive website and a descriptive paragraph or two. It’s earned links from 184 RDs.

Authority Nutrition’s list of 20 high-protein foods has links from 53 RDs. If I’m writing a nutrition article where I mention high-protein foods, linking to this page will save me from researching and listing out a handful of protein-rich foods.

How to use this strategy

The first step is to determine what kind of information would be valuable to have all in one place for other professionals in your industry to access.

Often times, it’s the same information that would be valuable for you.

Here are some ways to brainstorm:

  • Explore your recent blog posts or other on-site content. What needed a lot of explaining? What topics did you wish you had more examples to link to? Take careful note of your own content needs while tackling your own work.
  • Examine comments on other industry articles and resources. What are people asking for? This is a gold mine for the needs of potential customers. You can take a similar approach on Reddit and Quora.
  • What works for other industries that you can apply to your own? Search for terms like the following to see what has been successful for other niches that you can apply to yours:
    • [Industry topic] examples
    • types of [industry topic]
    • list of [Industry topic]
    • [Industry topic] statistics OR stats
    • [Industry topic] facts

No matter which way you choose to proceed, the time investment can help you garner many links down the line.

Beginner content

Every niche has a learning curve, with various words, concepts, and ideas being foreign to a beginner.

Content that teaches noobs the ins and outs of your vertical has long-term linking potential. This type of content is popular for citations because it saves the writer from explaining things in their own words. Instead, they can link to the expert’s explanation.

And the best part is you can tap your internal experts to provide great insights that can serve as the foundation for this type of content.

Examples

101 Content

Moz’s Beginner’s Guide to SEO is a master class in how comprehensive beginner-level content becomes a link magnet. Not only does the guide have backlinks from more than 1,700 RDs, it also edges out the home page as the most-trafficked page on the site, according to SEMrush.

“What is…?”

Beginner content need not be as massive and thorough as the Moz guide to be linkable. It can be as simple as defining an industry term or concept.

Moz’s meta description page, which has backlinks from 244 RDs, is a solid example of an authoritative yet simple answer to a “what is?” query.

Another example is the first result in Google for the query “what is the Paleo diet,” which has 731 links from 228 RDs. It’s not a 10,000-word academic paper about the paleo diet. Rather, it’s a concise answer to the question. This page has served as an excellent source for anyone writing about the Paleo diet within the last several years.

screenshot-robbwolf.com 2017-02-21 14-17-01.png

If a lot of adequate top-level, definition-style content already exists about topics related to your vertical, consider creating content around emerging terms and concepts that aren’t yet widely understood, but may soon be more mainstream.

The perfect example of this? Creating a definitive explanation about content marketing before the entire world knew what content marketing meant. Case in point: Content Marketing Institute’s “What is Content Marketing?” page has amassed an impressive from 12,462 links from 1,100 root domains.

How to use this strategy

Buzzsumo recently released a new tool called Bloomberry which scours forums including Reddit and Quora for questions being asked about a keyword. You can search by time period (ex. questions asked within the last 6 months, all-time results, etc.) and filter by source (ex. only see questions asked in Reddit).

Use Bloomberry to see what beginner questions are being asked about your keyword/topic. Keyword ideas include:

  • [Industry topic] definition
  • How does [industry topic] work
  • [Industry topic] guide
  • What is [industry topic]

After doing the search, ask yourself:

  • What questions keep coming up?
  • How are these common questions being answered?

Bloomberry is also useful for spotting research opportunities. Within the first few results for “SaaS” I found three potential research ideas.

bloomberry.png

Pro tip: Return to these threads and provide an answer plus link to your content once it’s published.

Yes, you still need to promote your content

Don’t mistake this post as a call to stop actively doing outreach and promotion to earn links. Content promotion should serve as the push that gives your content the momentum to continue earning links. After you put in the hard work of getting your content featured on reputable sites with sizable audiences, you have strong potential to organically attract more links. And the more links your content has, the easier it will be for writers and publishers in need of sources to find it.

What types of content do you think are best for earning citation links? I’d love to hear what’s worked for you – please share your experiences in the comments below.

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Monday, February 27, 2017

How to Build a PPC Offering at Your Digital Marketing Agency

Clients have been clamoring for leads and sales for long enough; the time to launch a pay-per-click offering at your agency was yesterday.

building a ppc offering for your digital marketing agency

Now, there are infinite possibilities when it comes to designing, launching, and managing a PPC offering for your digital marketing agency. On one hand this is fantastic: you can tailor your offering to best fit your existing skills and the needs of your clients. On the other, you’ve probably got a thousand questions…

Should you fake it till you make it? Outsource the complicated stuff? Hire SEM and paid social specialists?

Does it make sense to begin with a single network and grow? Is Bing necessary?

Which agency-specific tools out there will make your life easier?

Paralysis by analysis is all too possible (but to answer your questions: No, maybe, eventually, depends how comfortable you are, yes, WordStream Advisor for Agencies).

This guide is designed to minimize the time it takes to get your agency’s PPC offering off the ground. In it, you’ll learn:

  • What kinds of PPC Services you might provide
  • How to structure your pricing model
  • How to spread the word about your new PPC offering

In addition to this in-a-nutshell guide to building your agency’s PPC offering, we’ve asked some of our agency clients to provide tips on how they got started.[EG1] 

What Kinds of PPC Services Should My Agency Offer?

Most digital agencies offering PPC provide a fully managed solution; they take on full responsibility for the day-to-day management of online advertising campaigns.

Agencies with managed services typically have some number (one or several depending on the scope of the offering) full time hires devoted solely to PPC, as full-time management requires a significant amount of time and resources.

Aside from building and optimizing paid online advertising campaigns across AdWords, Bing, Facebook, and other social platforms, account managers are also responsible for customer relationships; they typically have frequent calls with the client to provide updates, align marketing goals, and report on account performance.

Let’s jump into some of the various PPC services your agency might offer in addition to run-of-the-mill account management:

adwords account audit for digital marketing agency

Account Audits

An in-demand service (and one you can use to acquire new business), account audits are simply an analysis of an existing account. Unlike ongoing strategic consulting, account audits are typically written in report form and reviewed over the phone. Consider charging a flat rate for audits, or, once you’ve developed a more streamlined process, offer them as a complimentary service; audits represent a ton of value for prospects, and showing them opportunities for optimization and growth can be the leverage you need to turn a skeptic into a client.

Account Buildout

Offering an account buildout service is important if you are selling to prospects that do not currently have an AdWords, Bing Ads, or Facebook Business Manager account. This service requires intimate knowledge of:

  • Best practices for each network
  • The client’s business
  • Important KPIs

In all, from planning to execution, buildouts can take anywhere from several hours to several weeks. 

adwords account structure

Account Restructure

If a client has let their account structure run amok, inherited an account responsibility from a colleague, or taken back control of their account from an agency, a one-time account restructure service can be a valuable add-on package to include. When pricing an account restructure, consider the size of the account, the historical account data, and marketing goals of the client to understand how many hours of resources a restructure may take.

Creative

While you may be taking the reins on your clients’ PPC campaigns, you might be less than willing (or able) to complete the necessary design work; display ads and Facebook ads require visual creative, and putting it together can be a real time sink. Make sure if you don’t have an in-house designer you’ve got a slew of trusted freelancers, and work their rates into your billing structure.

Landing Pages

If you can’t create, test, and optimize landing pages, you’re hamstringing your managed PPC offering; after all, if you have no control over the places paid traffic goes, your ability to maximize results is significantly inhibited. While there are agencies that put the onus for landing page optimization on the client, we wouldn’t recommend it! Doing landing page work will allow you to add value and stand apart from competitors who aren’t willing (or don’t know how) to do it. Landing page optimization will likely require design and development resources, so make sure it is reflected in your pricing (and pitch deck, too).

Strategic Consulting

Strategic consulting is one of the most in-demand services in PPC. There’s just one catch: you really need to know your stuff if you’re going to offer it! If you are interested in providing consulting services, you should be comfortable with identifying areas of opportunity and teaching clients how to implement strategic changes. Consulting sessions are typically held over a web conference call and are billed on an hourly basis at $99-$150 an hour depending on market and experience.

digital marketing agencies offering conversion tracking

Implementation, Analytics, and Tracking

Of all of the recommended services, conversion tracking implementation is the least time consuming. That said, helping clients install these codes on their website can be extremely impactful for client retention (there’s likely a pixel for every platform on which they advertise). If things start getting messy, tracking can be consolidated using Google Tag Manager). Consider charging a small flat rate for these services or providing them for free; since it’s likely that implementation will occur at the outset of a client relationship, this can be an excellent way to build trust and value right out the gate. 

digital marketing agency pricing scale for ppc services

Pricing Your PPC Service

Once you’ve decided which services you wish to offer, you will need to design a pricing and packaging structure. There are several common factors to consider.

Start-Up Fees

Start-up fees or setup fees are typically justified by the amount of initial overhead that comes with taking on a new account. It can take significant legwork to become familiar with a new account, get acquainted with the client’s’ marketing strategy, and make any important structural changes. Start-up fees often take shape as a flat one-time fee ranging from 50-100% of the recurring monthly rate. 

digital marketing agencies with ppc services make cash

As for recurring charges, there are several ways to model pricing. Charging based on a percentage of ad spend is among the most common, although the percentage itself varies significantly based on the level of service you are offering. Are you offering Display Network management? Weekly reporting? Paid social?

Percentage of Ad Spend

Consider the total value of your offering and pick a number that makes sense. For example, an agency charging 15% of spend will charge $750 to a client with a budget of $5,000/month. The most important thing to remember here is to avoid selling yourself short! If you’re providing exceptional service in every aspect of your offering, there’s no reason to be bashful about a high price tag.

One advantage of charging on a percentage of ad spend is the immediate gain in revenue when a client decides to increase his or her budget. Presumably, if a client is happy with your performance and decides to increase their budget, you will capture some additional revenue for a job well done. However, if a business has some seasonality to it, their budgets may fluctuate from month to month. Agencies that use a percentage model may find that they struggle with the unpredictability of monthly recurring revenue.

Flat Rate (Tiered Pricing Structure)

In order to ensure some stability, some agencies opt for a tiered pricing model, in which they charge a flat rate for different levels of spend. In this instance, agencies choose a budget range and charge the same amount each month so long as the client stays within that range. 

digital marketing agency ppc offering tiered pricing structure

A tiered model allows for some budget flexibility, without constant fluctuation in revenue on the side of the agency. However, some clients may be turned off by the drastic increase in charges if/ and when they do jump tiers.

Hybrid Pricing Model

The final pricing model you might want to consider is a hybrid, in which large fluctuations in revenue are offset by installing a flat fee or base fee on top of a percentage of spend. 

hybrid pricing structure ppc offering

If you opt for this pricing model, you should charge a lower percentage of spend than you would if you didn’t have a base fee. For example, if you decide to charge a $500 base fee plus 8% of total ad spend, a client with a budget of $5,000 would be charged $900/month. Typically, base fees can help filter out inquiries from lower budget prospects who still require a lot of work but will not bring in much revenue.

Add-On Pricing

Depending on what additional services you decide to provide (see above for the list of options), pricing options will vary. For services like account restructures, build-outs, and strategic consulting, it may be best to bill at an hourly rate (again typically $100-$250/hour). For services that can be streamlined (meaning they won’t take much time to complete), like account audits and implementation, a flat fee is typically easiest.

Getting the Word Out 

Once you have structured and priced your offering, you will need to get the word out! It is important to keep your message consistent across all channels, from your website to your marketing collateral and even your own PPC campaigns.

Update Your Website

Your new Paid Search offering isn’t official until it’s listed on your website alongside your other offerings. You should dedicate a portion of your website to present your PPC services to visitors. Explain the extent of what you offer and the different plans that are available. Some opt to include pricing on their website, while others prefer to leave pricing as a discussion during the pitch process.

Establish Your Authority

One of the more difficult challenges for business entering the paid search industry is establishing authority. What makes you qualified to manage or sell online marketing solutions? How do you gain trust from your website visitors and prospects? 

digital marketing agency google premier partner

One such way is to attain certifications. It may take a little bit of studying, but endorsements from Google, Facebook, and Bing are a great way to establish authority with prospects struggling with paid search. Eventually, once your offering is scaled up, you can leverage these initial certifications into partnership badges, which can be displayed on your website. These can give you instant clout with skeptical prospects.

bing elite smb partner badge

Another way to establish authority is to earn (and ask for) customer testimonials. If you’ve done great work in the past, prospects will be more apt to consider your services; people love social proof!

Present an Enticing Offer

Catching the eye of a prospects is just the first hurdle; once they know about your PPC services, it will still take substantial effort to turn them into clients. Offerings such as free white paper downloads can help you nurture your leads.

At WordStream, we have found that another enticing offer you can provide is a free account audit. If you can promise to leave a prospect with actionable takeaways during a 30-minute assessment, it can be difficult for them to walk away from the table. Most businesses aren’t even aware of the fact that their accounts are suffering until you lay it all out for them. Once this comes to light, prospects are much more likely to want to take action and consider your services.

Advice from our Agency Clients

It’s better to hear it can be better to hear it straight from the horse’s mouth. We asked some of our Agency partners— digital marketing outfits who leverage WordStream Advisor for Agencies as the foundational component of their PPC offering— how they got started and what advice they would give to fledgling agencies.

Lightpost Digital

digital marketing agency ppc service ceo 

Jimmy Hendricks, CEO

According to Lightpost Digital CEO Jimmy Hendricks, the agency expanded into PPC at the request of their clients. “We initially started our agency by developing WordPress websites and managing social media marketing. As our client base grew, we started getting referrals to lawyers, dentists, and home service companies whose #1 marketing metric was phone calls.”

As a result, Lightpost added PPC management to their repertoire and hired two Google AdWords experts. Today, PPC is their fastest growing service. 

“There is nothing more fulfilling than sharing positive metrics with clients and hearing they want to increase their budget because the marketing is working so well,” says Jimmy. Music to our ears.

Two tips for agencies building a PPC offering…

lightpost digital ppc services

  1. Really understand what a profitable lead is for a client so you have a target cost per acquisition (CPA) target.
  2. Give your clients realistic timelines and a clear plan on how you are going to work to achieve this CPA target.                 

Learn more about Lightpost Digital!

VGM Forbin 

digital marketing specialist

Alex Nicoll, Web Marketing Specialist / Employee-owner

Back in 2006, Forbin identified PPC as a great way to get their clients in front of prospects online in an affordable manner.

“One of our first clients was a local manufacturing company who, in the past, had spent the majority of their marketing budget to be included in an industry publication. They had little success and results were difficult to track.” According to Alex, once the Forbin began running PPC campaigns instead of ads in trade publications, the client saw a much higher ROI on PPC with measurable reporting.

“Since then,” says Alex, “the PPC program has continued to grow into what it is today.”

Two tips for agencies building a PPC offering…

vgm forbin

  1. Stay on top of current PPC news by participating in webinars, reading blogs and attending conferences. PPC is always evolving and it is important to stay ahead of changes. If you can, find a mentor who understands the industry to help guide you in the right direction.
  2. Learn to speak PPC to clients in layman’s terms. There are a lot of complex terms and ideas that are hard for clients to grasp without a solid understanding of the industry. If you can learn to speak PPC to clients, it will be much easier to show value and grow the program.

Learn more about VGM Forbin!

Flypaper 

seo sem strategist

Amber Stanley-Kruth, Project Manager – SEO/SEM Strategist

Flypaper began offering PPC services through an outside multi-media organization, and when they were ready to pull SEM/PPC operations in-house, they struggled to manage spend across AdWords, Bing and Yahoo.  According to Amber Stanley-Kruth, “Trying to manage several clients with different monthly budgets across multiple advertising platforms was a challenge. We eventually dropped Bing and Yahoo, and had much better results only advertising on AdWords.” 

As Flypaper grew, their client-base expanded and the agency started to see a drop in performance with the cost and engagement in PPC campaigns. “It was a strain on our workforce,” says Amber, “to monitor and optimize every campaign for every client. There are many elements of SEM/PPC that contribute to the success of the campaigns and each factor seems to cause an avalanche on the other parts of the advertising campaign.” 

The avalanche was stymied, in part, by Flypaper’s decision to use WordStream Advisor for Agencies.

“WordStream’s ability to scan every element of each campaign and ad group saves our team many hours every week and gives us a detailed and holistic view of each account performance. The educational blogs, how-to articles and incredible staff resources have more than made up for the investment,” says Amber. 

Two tips for agencies building a PPC offering…

flypaper digital

  1. Knowing how to setup a PPC campaign is one of the most important requirements for success. Study the guidelines of the advertising platform, sign up for updates and insights, and follow professionals and websites that post regularly on the best practices of Search Engine Marketing/Pay-Per-Click.
  2. Start small and scale up; Use one platform (eg. Google AdWords) and become comfortable with it by learning what is expected for success. Share data with your clients. Be transparent.

Learn more about Flypaper!

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Ready to get your digital marketing agency’s PPC service off the ground and sign your first clients? Start your free trial of WordStream Advisor for Agencies today!

About the Author

Allen Finn is a content marketing specialist and the reigning fantasy football champion at WordStream. He enjoys couth menswear, dank eats, and the dulcet tones of the Wu-Tang Clan. If you know what’s good for you, you’ll follow him on LinkedIn and Twitter.

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