5 Signs That Your PPC Agency Is Dropping the Ball
Not all PPC agencies are created equal when it comes to delivering the full potential of your ad budget.
Your PPC (or paid search) strategy is a new customer pipeline that’s essential for sustaining your business growth. It’s the #1 late-journey channel to reach and convert high intent leads - so you can’t afford not to get it right.
The difference between a good and a poor PPC agency is night and day.
If you leave a poorly performing PPC agency in place, the best case scenario is poor budget ROI far below potential. The worst case scenario is business growth or even revenue declining over time. You could lose your job if you're the CMO or paid media owner.
5 Signs That Your PPC Agency Is Failing You
Any one of these 5 signs that your PPC agency isn’t performing should probably be a deal breaker. But if you’re seeing all 5 of these, it’s definitely time to break up!
Do bear in mind - you get what you pay for.
An agency that hires the best talent and delivers results is worth the money. The higher ROI on your PPC budget should adequately cover their fee.
1. They Aren’t Proactive
- They behave like “task rabbits” and “yes-men”, following instructions rather than performing like a true consulting PPC partner.
- You have to chase for communication or updates and responsiveness is slow.
- Deadlines or key dates are missed.
What You Need - A great PPC agency will lead you as a consultant, proactively pointing out what your PPC strategy needs to be successful. A true PPC partner will challenge your preconceptions, guiding you through the process.
2. They Don’t Build a Holistic Strategy
- They don’t ask about the objectives, targets and wider strategy your business is trying to achieve.
- They don’t take time to understand your brand and your industry.
- They don’t track how PPC activity is directly affecting the bottom line.
What You Need - A great PPC agency will take a wider and longer-term outlook on your brand’s objectives and positioning. They will have a view on your competitors, your TAM, key KPIs, and develop forecasting that ties back allocated campaign budgets to expected results. They will set and share clear PPC KPIs that layer into achieving your target business objectives.
3. The Team Is Junior Or Has High Turnover
- You only ever communicate with junior account managers and can’t get any of the senior team’s time.
- Account managers are thinly spread - you have 1 person assigned to your account and you get the feeling they have too many accounts or are more focused on some other clients.
- The turnover (or attrition) of the agency staff you work with is high, and knowledge of your campaign history and set-up suffers as a result.
What You Need - A great PPC agency looks after their talent and carefully manages staff to client ratio, resulting in a high quality service. You have regular access to senior PPC strategists and there is deep knowledge and consistent management of your PPC accounts.
4. Reporting Isn’t Great Or Results Are Unclear
- You don’t proactively receive regular reporting on your PPC campaigns.
- Reporting accuracy is questionable, or tangible financial results and business outcomes are unclear.
- They only report the on-platform metrics provided, or any reporting from outside the ad platform is limited to Google Analytics.
What You Need - A great PPC agency will use their own attribution tools (covering MTA, MMM, incrementality, etc.) to track which ad exposures are most effective for conversion. They’ll report direct business outcomes for the budget invested in your search campaigns and ad groups. They can offer additional support to improve closed-loop reporting so that bottom-line financial results are accurately tracked. Reporting will be clear, the cadence will be regular, and your questions will be answered as part of the process.
5. You Aren't Seeing The Results Promised
- Poor ROI performance (after 2 quarters from activation) is the most important sign that you need a better PPC agency, ASAP.
- The traffic generated by campaigns is low quality and doesn’t convert.
- Brand awareness or vanity metrics are used as an excuse for poor conversion rates.
- Ad budget allocation is misaligned for growth, often over-invested in late journey (bottom-funnel) and not feeding a pipeline at the top.
What You Need - The skillet of a great PPC agency will cover full journey planning and matching budget allocation, right through to conversion rate optimization (CRO). All ad touchpoints are designed to work together in a complete journey extending beyond just search. Budget ROI will be maximized in the short-term without sacrificing long-term growth using a full-funnel strategy.
PPC Audit Metrics That Will Tell You The Truth
Ideally, you can use selected KPI benchmarks to tell you how well your current PPC agency is performing.
And if your agency isn’t reporting these, it’s definitely a red flag!
To run a quick and simple PPC audit on your agency, here are the top KPIs that every brand should have visibility on.
(Please note: the guideline benchmarks we have provided below are high-level and can vary widely by industry. Contact us if you’d like benchmarking and KPI support).
1. Impression Share (IS)
IS for chosen keywords is a great indicator of how effective your bidding strategy is, and also indicates the search algorithm’s quality score for your ad copy and landing pages.
If your IS is <20% for all non-branded keywords, there’s definitely a problem. However look for >80% IS for branded keywords, with ~95% being really good.
2. Branded vs. Non-Branded % of Total Spend
Unless you are an extremely well-known brand in a highly competitive environment, you should not be spending >10% of your total search budget on branded terms.
If you are, it’s typically a case that whoever is managing the account is trying to inflate performance. Branded terms will outperform all other terms given that searchers are putting in queries to find your brand specifically. They already have brand awareness and the highest intent.
As long as your brand appears on the first SERP organically, your ad budget is more effectively spent getting in front of users who are:
- Searching for your products or solutions but without being brand specific.
- Searching branded keywords for your competitors.
3. Click-Through Rate (CTR)
CTR will tell you if your search ad copy is giving the right message to a relevant audience.
If CTR is below 1% then one of these elements is way out of alignment. You want a CTR of at least 3% for your paid results, but ideally 5%+.
4. Conversion Rate (CVR)
Whatever your business model, your PPC agency should help you set up conversion goals on all your search ad landing pages, such as completed visitor actions.
What qualifies as a good CVR varies a lot by industry, however good CVRs for B2B brands is 6% on average, while DTC should look for at least ~3-5%.
In addition to those:
5. For B2B brands - Cost Per MQL
By nature of most B2B conversion processes, you’ll have a longer period between ad click, sales conversion and accounts receivable payments. Closed-loop reporting will have a couple of extra steps, perhaps relying on some manual inputs from the sales team. That’s why B2B brands with offline sales conversion processes need to lean more heavily on MQL generation rather than conversions or revenue for immediate traffic quality and ROI feedback. You’ll need to develop measurable MQL criteria for this metric.
Cost per MQL does vary dramatically by industry vertical. Around $200 to $300 per MQL would be low, and for some can be ~$1,500. Industry benchmarks are an important data source here.
Your agency should consistently monitor first-step and next-step conversion rates for MQLs through the entire pipeline, optimizing for higher quality leads and faster sales cycles through closed-won.
6. For DTC brands - ROAS
As an ecommerce operator, you have the luxury of precisely tracking immediate ad conversions and order values to determine ROAS by revenue results. Just watch out for double attribution across your active ad platforms, especially if your current PPC agency only uses on-platform reporting!
Around $2 in revenue to $1 in ad costs is average. However a 4:1 ratio — $4 in revenue to $1 in ad costs — is a better target that a great agency will aim for.
Summing Up
At Half Past Nine, we work with brands who want more than the standard marketing agency service and are ready to invest in paid customer acquisition more strategically.
We don’t see ourselves as merely an “agency". As our clients will tell you (just check out our Clutch reviews), we continually go beyond what is expected. Our proactive consultancy service:
- Brings stronger strategic direction.
- Builds complete customer journeys with precisely timed targeting built on intent signals.
- Delivers above average paid media results, extracting the full growth potential of your budget.
Learn more about how we help brands scale quickly and sustainably, delivering holistic strategy support as a true agency partner.
Or get in touch for a free scoping call - we’d be interested to hear your objectives and discuss making them a reality.
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Facebook Ads Bidding Strategies can either make or break your advertising campaign. If you've been struggling with getting the best results, understanding the benefits and drawbacks of each strategy can save you both time and money. The right bidding strategy can help you reach your target audience more effectively and get the most out of your advertising budget.
Each bidding strategy has its unique benefits and challenges. Some are great for maximizing visibility, while others prioritize cost-efficiency. Choosing the right one depends on your specific goals, whether that's more clicks, better engagement, or higher sales. Knowing the pros and cons of each strategy will help you make informed choices that benefit your business.
This article will guide you through five key Facebook Ads Bidding Strategies. You’ll learn about their benefits, drawbacks, and how to pick the one that suits your campaign objectives. By the end, you’ll have a clear understanding of which strategy will help you achieve your advertising goals effectively.
Understanding Facebook Bidding Mechanics
Facebook bidding is essential for advertising success. It involves auctions where advertisers compete for ad placements. Understanding key elements like Auction Dynamics and Different Bidding Strategies is crucial.
Auction Dynamics and How Bids Work
In Facebook's auction, ads compete based on bids, estimated action rates, and ad quality. Bid represents how much you're willing to pay for a specific action (like clicks, views, or conversions). The Cost Per Result adjusts based on competition.
Bid Cap lets advertisers set a maximum bid. This ensures spending control but may limit campaign reach. Meta bidding strategies, like Lowest Cost and Target Cost, help optimize for specific goals, balancing cost and performance.
Factors influencing the auction include:
- Bid amount
- Ad relevance
- Estimated action rates
Exploring Different Bidding Strategies
Advertisers can choose from several Facebook bidding strategies. The Lowest Cost strategy aims to get the most results for the lowest price but may lack spending control. The Cost Cap strategy helps maintain an average cost while driving results.
The Bid Cap strategy is useful for high-control needs, letting you set the max bid per action but it might restrict delivery. Target Cost aims for a stable cost per action, ideal for steady budget planning.
Choosing the right strategy depends on your campaign goals, budget, and desired Cost Per Result. Evaluate each option to find the best fit for your needs.
Implementing Bidding Strategies for Campaign Success
Successful implementation of bidding strategies can drive better results and optimize ad spend. Key factors include setting appropriate bid caps, maximizing returns using ROAS goals, and balancing volume and value.
Setting the Right Bid Cap for Your Campaign
Setting the right bid cap involves determining the maximum amount you are willing to pay for a result. This ensures costs don't exceed the budget. Bid caps can help control spending and improve efficiency.
- Analyze past performance: Review historical data to identify the highest bid that achieved desired results.
- Adjust as needed: Be flexible to change bid caps based on real-time campaign performance.
- Consider the competition: Higher bid caps might be necessary in competitive markets.
Maximizing Returns with ROAS Goals
Use the Return on Ad Spend (ROAS) bid strategy to drive maximum returns. ROAS goals ensure that every dollar spent on ads generates a specific amount of revenue.
- Calculate target ROAS: Set a realistic ROAS based on past campaigns.
- Monitor and tweak: Regularly check ad performance and adjust your ROAS goals to meet revenue targets.
- Balance quality and cost: High ROAS might limit reach, so find a balance between cost and quality.
Balancing Volume and Value in Bidding
Balancing volume and value helps achieve the right mix of reach and profitability. Consider using both Highest Volume and Highest Value strategies.
- Highest Volume: Bids are set to get the most conversions, good for awareness and large-scale campaigns.
- Highest Value: Focuses on getting the highest-value conversions, suitable for targeting high-value customers.
By carefully implementing these strategies, advertisers can meet their campaign goals effectively.
5 Facebook Bidding Strategies: Benefits, Drawbacks, and Selection Guide
Static ads and dynamic ads serve different purposes in the world of marketing. Static ads are simple and stay the same at all times. They are easy to create and can be effective for straightforward messaging. But dynamic ads offer customization, changing their content to fit the audience's preferences and behaviors.
Dynamic ads might seem complicated, but they bring better results by targeting specific groups with personalized messages. This means higher engagement rates and more conversions. Static ads, on the other hand, are less effort to produce but may not capture attention as effectively.
Deciding between static and dynamic ads depends on the brand's goals and resources. Each has its strengths and can be powerful if used appropriately in a marketing strategy.
Understanding Static and Dynamic Ads
Static ads and dynamic ads serve different purposes in digital marketing. Each has unique features and benefits that cater to varied marketing needs.
Exploring Static Image Ads
Static image ads are straightforward. They are typically still images that do not change once created. These ads are ideal for conveying a clear, unchanging message or brand image.
A static image can include text, graphics, and logos, and is often used on websites and social media platforms.
Advantages of Static Images
- Consistency: The message remains the same, which can be useful for brand recognition.
- Simplicity: They are simple to create and often cost less than dynamic ads.
- Predictability: Once the ad goes live, what you see is what you get.
Unpacking Dynamic Advertising
Dynamic ads are more complex. They can change content in real-time based on user data and behavior. Unlike static ads, dynamic ads can alter images, text, and calls to action depending on who is viewing the ad.
Benefits of Dynamic Ads
- Personalization: Content can be tailored to each user, potentially increasing engagement.
- Flexibility: They can show different messages to different audiences without creating multiple ads.
- Efficiency: They adapt to user preferences, making the ad experience more relevant.
Comparative Analysis and Use Cases
Static and dynamic ads offer different benefits and limitations. This comparison will help you understand where and how to use each type effectively in your marketing strategy.
Static Images Vs. Videos
Static images are simple and quick to create. They load faster than videos, which is great for mobile users and slow internet connections. They allow for clear, focused messages without distractions.
Videos, on the other hand, capture attention better with motion and sound. They convey more information in a short time. Videos are more engaging and can demonstrate products or services in action.
Leveraging Opportunities for Static Ads
Static ads are useful in various scenarios. Billboards are a great example, as they need to be read quickly. Print ads in magazines and newspapers also benefit from static images. Online banners are often more effective when static, as they load quickly and are less intrusive.
Static ads are best when the message is straightforward. They work well for short calls to action like "Buy Now" or "Sign Up." Visually, they should be clean and uncluttered to convey the message quickly.
