Reducing Wasted Ad Budget: The Hidden Costs of Close Variants
Managing ad spend efficiently is crucial for successful PPC campaigns. Close variants in search terms, while designed to capture more traffic, often lead to unintended expenses. This article explores the hidden costs associated with close variants and offers strategies to optimize your ad budget effectively.
Understanding Close Variants
Close variants include plurals, misspellings, synonyms, and other keyword variations. Google’s close variant matching aims to capture additional traffic despite minor search query discrepancies. Although beneficial in some cases, it can also result in irrelevant clicks, wasting ad budget.
Example: If your keyword is "digital camera," close variants might include "digital cameras," "digital camara," or "electronic camera."
Hidden Costs of Close Variants
Irrelevant Clicks
Not all close variants are relevant. For example, "electronic camera" may not be as targeted as "digital camera," leading to non-converting clicks.
Increased CPC
Close variants can raise your cost-per-click (CPC) as they may not be optimized, increasing ad spend without proportionate conversions.
Diluted Performance
When close variants trigger ads, it can dilute your primary keywords' performance metrics, complicating the optimization process.
Strategies to Reduce Wasted Spend
Regular Search Query Reports
Conduct regular reviews of search query reports to identify irrelevant close variants. This helps in spotting terms to be added as negative keywords.
Action: Schedule weekly or bi-weekly reviews to monitor and reduce wasted pend due to irrelevant close variants.
Use Negative Keywords
Negative keywords prevent ads from appearing for specific search terms that are not relevant to your business.
Action: Update your negative keyword list based on search query reports to exclude irrelevant close variants.
Phrase and Exact Match Keywords
Utilize phrase and exact match types for greater control over ad triggers, reducing irrelevant clicks from close variants.
Action: Adjust your keyword strategy to include more phrase and exact match keywords for targeted reach.
Optimize Ad Copy and Landing Pages
Ensure ad copy and landing pages align closely with your keywords to increase quality score and improve conversions.
Action: Continuously optimize ad copy and landing pages for relevance and user intent.
Monitor Performance Metrics
Regularly track performance metrics such as CTR, conversion rate, and CPC to identify the impact of close variants.
Action: Set up automated reports and alerts to monitor metrics and make data-driven adjustments.
Use Smart Bidding Strategies
Implement smart bidding strategies to optimize bids for conversions, adjusting automatically for close variants that are more likely to convert.
Action: Experiment with strategies like Target CPA or Target ROAS to optimize ad spend.
Real-World Application
A digital marketing agency working with an online retailer reduced wasted ad spend by 20% by implementing these strategies. Regular search query reviews and negative keyword updates minimized irrelevant clicks, while focusing on phrase and exact match keywords improved traffic relevance and conversion rates.
Example: Excluding terms like "cheap camera" from a "digital camera" campaign helped target more relevant traffic and achieve a higher ROI.
Conclusion
Close variants can significantly impact your ad budget if not managed properly. By understanding the hidden costs and implementing strategies to mitigate wasted spend, you can enhance PPC campaign efficiency. Regular monitoring, effective use of negative keywords, and optimizing match types are key to reducing unnecessary costs and improving overall performance.
