Looking for ways to scale an existing eCommerce business, or you've just started one?
Either way, since you landed on this page, I'd assume you want to know...
Is PPC Good for eCommerce?
Yes, PPC is highly beneficial for eCommerce businesses as it efficiently reaches the target audience. With PPC advertising, you can quickly improve online visibility and increase sales. The flexibility in budgeting and targeting makes it a cost-effective online advertising strategy.
According to PPC stats published by FitSmallBusiness:
Nearly 65% of consumers with high purchase intent are more likely to click on Google ads rather than organic results when searching for products online.
Now that you know the answer to one of the most common PPC advertising questions, here is what else we'll talk about today:
- What is PPC for eCommerce sites?
- How to set up your PPC campaigns
- How to measure campaign success
- The best eCommerce PPC Platforms
My name is Evan Ernst, founder of a Spokane-based digital marketing agency. The goal of this article is to help you understand how PPC ads can grow your eCommerce biz.
What is PPC for Ecommerce?
Pay-per-click (PPC) is a digital advertising model where eCommerce businesses pay a fee each time their ad is clicked. PPC ads are commonly displayed on search engine results pages or social media platforms in front of potential customers who match the targeting criteria.
The simplest way I explain it to eCommerce business owners interested in our affordable PPC management services is:
You pay PPC advertising platforms to send folks who need your products to your online store.
Obviously, running an effective eCommerce PPC campaign isn't as simple as that. A lot more goes into the success of a PPC strategy, and I'll cover the basics in the following sections.
Setting Up an Ecommerce PPC Campaign
The first steps in setting up a PPC campaign involve a strategic approach to selecting keywords, crafting an ad copy, and creating a landing page that converts. These three elements must be perfectly synced to see a decent increase in traffic and online sales.
Choosing the Keywords
You start by identifying the search queries potential customers use when looking for products similar to yours. I'm sure you can come up with a list of keywords related to your eCommerce industry.
Next, you can use free tools like Google Keyword Planner to see the forecast of your keywords based on ad spend or discover more keyword ideas.
If you have the time, I'd recommend learning to use paid keyword research tools like Ahrefs. You can take a much deeper dive to find specific phrases for attracting highly-targeted traffic.
Crafting Your Ad Copies
When crafting copies for your eCommerce PPC ads, the main focus is writing concise yet appealing messages that resonate with your target audience.
What works best for us at Ernst Media is:
Blending the unique selling points of a given product and consumers' desires and pain points. As I emphasize in my PPC tips for small businesses...the ad must touch your target audience on an emotional level.
The next ingredient of your digital ads is a strong call to action. If you want to guide people from desire to purchase, you need to tell them what to do.
So, if I want to target you with a PPC ad, I could write something like this:
"Struggling to get quality traffic and conversions? We have 15+ years of experience in eCommerce PPC management. Get a FREE consultation today and see your sales soar tomorrow."
Okay, maybe without the "tomorrow" part, but you get the point.
Optimizing Landing Pages
The landing page design can make or break your eCommerce PPC campaigns.
If you want your eCommerce business to grow...people should be met with what they've been promised after clicking on the advertisement. Your landing page must be:
- aligned with your ad copy on 100%
- appealing and easy to navigate
- immediately displaying the product
Mobile friendly pages that load quickly, attention grabbing images, and clear calls to action (again) will further help transition online store visitors to spenders.
My team and I have been managing PPC campaigns for ages, and I can guarantee you that...
If you get any of these 3 steps wrong, your ads won't perform because they'll fail to meet your potential customer's expectations.
Let me give you a quick example:
You're running a PPC ad campaign using Google search ads for a dietary supplement online business targeting people looking for quick weight loss solutions.
Your keywords and ad copy are on point, so people click on it. But then, they end up on a page displaying various dietary supplements (proteins, vitamins, probiotics, etc.) with no weight loss pills shown above the fold.
The buyer's journey is interrupted!
When folks don't immediately see what they want (the weight loss pills), they bounce back and click on any of the other paid search ads.
Managing and Optimizing Ecommerce PPC Campaigns
Once your PPC ads are up and running, you need to manage and optimize those to achieve optimal results. The basic steps involved in this process are setting a budget, picking a bidding strategy, and monitoring and refining your eCommerce ad campaigns.
Setting a Budget and Bidding Strategy
Setting a clear budget is important because it lets you control ad spending and allocate resources efficiently. If you don't do it, you'll probably end up overspending and quitting.
It's one of the common digital marketing mistakes I've seen many small business owners make. And when someone jumps to conclusions like "PPC for eCommerce isn't worth it"...I like to quote Stacey Kehoe, who said:
"If you think online marketing is expensive, you're doing it wrong"
Moving on to bidding strategies, the right choice allows you to compete effectively for prominent positions when using Google Shopping Ads, for example...or achieve more measurable outcomes with social media advertising, like Facebook ads...yes, they still work.
I hope you figured this isn't just about keeping your eCommerce advertising budget in check:
» It enhances the visibility of your PPC ads in search engines and social media platforms.
» It improves the traffic quality, which translates to more online sales and better returns.
Monitoring and Optimizing Performance
To maximize the return on your eCommerce PPC advertising, you need to monitor important key performance indicators (KPIs). We track a variety of metrics to deliver optimal results, but I'll only show you the ones you need to get started.
Click-Through Rate (CTR)
It measures the percentage of users who click on your ad after seeing it, providing insight into the effectiveness of your ad copy and targeting. A higher CTR indicates more engaging ads.
What's a good CTR for eCommerce?
A good CTR for eCommerce PPC ads typically ranges between 2% and 5%, but this can vary depending on the industry and the platform used. For Google ads, anything above 2.5% is considered a good CTR, but you should always aim for higher than the average.
Cost Per Click (CPC)
CPC represents the amount you pay when someone clicks on your eCommerce PPC ad. This metric helps you to manage your ad spending and assess the competitiveness of your keywords.
What is a good CPC for eCommerce?
A good CPC for e-commerce generally ranges from $0.40 to $1.25, with PPC ads being one of the cheapest compared to other industries. To balance CPC and ROI, you must focus on the quality and relevance of your ads.
Cost Per Acquisition (CPA)
CPA calculates the cost of acquiring a customer through your eCommerce PPC ad. By dividing the total cost of your ad campaign by the number of acquisitions, you can evaluate the overall profitability and efficiency of your advertising efforts.
What is a good CPA for eCommerce?
A good CPA for eCommerce varies depending on the product type. Generally speaking, it falls within the range of $40 to $65. An optimal CPA is achieved by taking full advantage of PPC ad targeting and improving conversion rates.
Which Platform is Best for Ecommerce Ads?
It's hard to name one platform as the best for eCommerce ads, but several stand out with their advantages. Google is a top choice, offering extensive reach through search and shopping ads. Meta, particularly Facebook and Instagram ads, are great for their precise audience targeting. Amazon is ideal for eCommerce companies looking to capitalize on the platform's massive consumer user base.
If I had to choose the best ad format for an eCommerce PPC campaign, I'd go for Google Shopping Ads. In most cases, a well-structured shopping campaign will perform much better than anything else.
Apart from the above mentioned, at Ernst Media, we've seen good results with YouTube, Microsoft, and Apple Search ads. At the end of the day, it all depends on your eCommerce business goals, marketing budget, and specifics of the product you want to advertise.
The Bottom Line
These are the basics of PPC advertising for eCommerce businesses that will get you started on the right foot. I have another article covering more advanced PPC campaign management and optimization methods...however, I'd recommend sticking to the basics so you won't get overwhelmed.
Do you want to skip the trial and error and maximize eCommerce PPC returns from day one?
My team and I at Ernst Media are certified experts with a proven track record of success.
We work closely with each client and have no campaign setup fees.
Founder of Ernst Media. Fifteen years running paid search and paid social for small and mid-size businesses, and still the person who builds the audits by hand. Writes here about what actually moves accounts.