The following Pay Per Click Study summarizes the results from my PPC ProfitMax service for a paid search client in the apparel industry. ProfitMax is one of my most popular pay per click management services.
Paid Search Client Situation
- Small apparel company sells through an online store.
- Spends over $2,500 per day on paid search programs on all major paid search platforms.
- Participated in pay per click programs from Google, Yahoo! and Microsoft for over two years and became nicely profitable – achieving ROI well into double digits.
- Paid search programs managed in-house.
- Client hired Terrakon Marketing to conduct a Pay Per Click Audit to quantify the opportunity for improvement in pay per click advertising and make Go/No-Go recommendation on Terrakon Marketing’s Pay Per Click ProfitMax Program.
- Based on the Pay Per Click Audit results, partnered with Terrakon to implement the PPC ProfitMax Program to significantly improve paid search performance.
Pay Per Click Audit Summary
- Identified significant opportunity to increase pay per click profits – estimated a new pay per click strategy across all major paid search programs could increase profits by 2-5 times current levels.
- Identified “quick-fix” items to immediately implement across paid search campaigns in all pay per click programs resulting in an increase of $154,628 in annualized profits.
- Portion of quick fix items used to fund “Go” on Terrakon Marketing’s PPC ProfitMax which included further research and the design, implementation, tracking and continuous improvement of a new pay per click strategy and structure for all major paid search platforms.
Pay Per Click ProfitMax Results
- Terrakon Marketin’s Pay Per Click ProfitMax Program resulted in a bottom-line profit increase of 383% when comparing eight actual months on a year-to-year basis for this season-sensitive company and an increase of 425% when projecting the incremental profits out one full year.
- The client’s return on their investment with Terrakon Marketing on this project was 2,135% – over 21 times their money back – based on the first year of incremental profits alone.
- The payback time on the paid search optimization project was just over one month through realized incremental profits.
PPC ProfitMax Results Graphs
These graphs depict the significant change in performance for one of the pay per click search engine programs after I designed and implemented a completely new pay per click strategy/structure and optimized over twenty campaigns in each major paid search platform.
In the first graph, the light blue line represents clicks and the dark blue line the average cost per click (Avg CPC). After the new pay per click campaign strategy and structure was implemented, you can see it had a huge impact on these two metrics. The number of clicks went way up and the Avg CPC went way down – a great combination!
In the second graph, the light blue trend line represents the number of conversions (purchases), while the dark blue trend line represents the cost of each of those conversions. As you can see, the new pay per click strategy resulted in immediate and significant improvement to my client’s bottom-line profits. Again, we see the number of conversions went way up and the cost per conversions went down – again, a fantastic result.