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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Localizing UGC ads involves tailoring the content to fit the cultural and linguistic nuances of specific regions. By doing so, businesses can make their ads more relevant and appealing to local customers. This not only enhances user engagement but also increases the effectiveness of the ad campaigns.
To run these ads at scale, a streamlined process is crucial. Effective tools and strategies are needed to gather, curate, and distribute UGC quickly and efficiently. This ensures that the message remains consistent while still catering to the local tastes and preferences of different customer groups.
Developing a Strategy for Localized UGC Ads
Creating an effective strategy for localized UGC ads requires a clear understanding of how localized advertising works, how to leverage user-generated content, and the best ways to incorporate performance branding principles.
Understanding Localized Advertising
Localized advertising tailors messages to fit the specific needs and preferences of different regions. This involves understanding cultural nuances, local slang, and regional preferences. Marketers need to research and identify what resonates with the target audience in each locality.
- Cultural Relevance: Ads should reflect local customs and culture.
- Language: Use the native language or local dialect where possible.
- Local Trends: Stay updated on regional trends and popular events.
Engaging with local influencers can also boost the credibility and effectiveness of the campaign.
Leveraging User-Generated Content
User-generated content (UGC) involves real users creating content related to a brand. This content can include reviews, photos, videos, and social media posts. UGC is powerful because it’s seen as more authentic and trustworthy.
- Encourage Participation: Brands should motivate users to share their experiences.
- Content Curation: Collect and select high-quality UGC to feature in ads.
- Incentives: Offering rewards or recognition can boost user engagement.
Using UGC in ads helps build trust and shows real experiences with the product or service.
Integrating Performance Branding Principles
Performance branding aims to achieve both short-term results and long-term brand building. For localized UGC ads, combining performance branding can drive immediate action while strengthening brand perception.
- Measurement: Track key performance indicators (KPIs) like engagement rates.
- Optimization: Continuously test and refine ads for better performance.
- Consistency: Ensure branding elements like logos and slogans are consistent across all ads.
This approach ensures that localized UGC ads not only engage users but also contribute to branding goals over time.
Execution and Scaling of Localized UGC Campaigns
To effectively run localized user-generated content (UGC) ads at scale, one must carefully plan the campaign structure, tailor the content for each market, and use the right tech solutions for efficient scaling. The goal is to optimize performance and reach the targeted audience with relatable content.
Creating the Campaign Structure
Success starts with a well-structured campaign. Begin by identifying the target regions and creating specific campaigns for each. Each campaign should have its own set of ads, keywords, and budget allocations.
Organizing ad groups by regional markets helps in tracking performance. For instance, a UGC ad targeting New York will differ from one targeting Miami. This setup allows advertisers to monitor which ads perform best in each market.
Use clear naming conventions for ease of management. For example, naming campaigns with prefixes like US-NY or US-MIA can help keep track of regional differences. This strategy simplifies reporting and optimization for various local markets.
Content Customization and Approval
Localized UGC ads require customized content. Start by collecting content from users within specific regions. This can include images, videos, and testimonials. Authentic, local content resonates more effectively with the audience.
A robust approval process ensures content meets brand guidelines and is culturally appropriate. Using a content management system can streamline approvals by storing, editing, and approving content in one place.
Ensure that all content respects local sensitivities and regulations. For instance, an ad campaign for Paris might include different imagery and language nuances than one for Tokyo. This localization boosts engagement and relevance.
Technological Solutions for Scaling
Technology plays a crucial role in scaling UGC campaigns. Ad management platforms like Meta Ads Manager offer tools for creating, optimizing, and scaling ads efficiently. Automation tools help in adjusting bids, budgets, and placements in real-time.
Utilize analytics tools to measure performance across different regions, adjusting strategies as needed. These tools offer insights into what works best, enabling quicker and better decision-making. Leveraging AI can assist in personalizing content and targeting effectively.
Adopting Dynamic Creative Optimization (DCO) can further enhance ad performance. DCO automates the customization of ads based on user data, making tailored ads at scale possible. This leads to higher engagement and better ROI.
How to Build and Run Localized UGC Ads At Scale for Maximum Impact
Expanding your reach on Meta takes more than just regular posts. It requires creative thinking and innovative strategies. By exploring diverse audience segments and utilizing Meta’s range of tools, you can tap into incremental audiences that you might have missed before. These strategies can help you connect with new users, enhance engagement, and ultimately grow your presence on the platform.
For instance, leveraging lookalike audiences allows you to find people who are similar to your current followers. This can help you reach those who are likely to be interested in your content but haven't yet discovered your brand. Another effective lever is using video content, which tends to have higher engagement rates compared to images or text posts, thus capturing the attention of potential new followers.
Experimenting with boosted posts and paid ads tailored to different demographics can further broaden your reach. Meta offers detailed targeting options, enabling you to tailor your messages to specific groups. Using these tools smartly ensures that your content gets in front of the right eyes, driving growth and engagement.
Strategies for Expanding Audience Reach on Meta
Reaching new audiences on Meta involves optimizing digital campaigns and diversifying creative content. These strategies boost ad resonance and efficiently target broader or more specific groups.
The Importance of Digital Campaign Optimization
Optimizing digital campaigns ensures that ad spending is efficient. By tweaking variables like audience settings, budgets, and bidding strategies, businesses can better allocate resources.
Meta Advertising Strategies include using tools like A/B testing to compare different ad versions. Campaign Efficiency is improved by continuously monitoring results and making data-driven adjustments.
Broad targeting reaches large numbers of people but may lack precision. Narrow targeting hones in on specific demographics or interests, making ads more relevant to those users.
Creative Diversification: Enhancing Ad Resonance
Diversifying creative content is key to keeping ads fresh and engaging. Different types of visuals, messages, and formats can appeal to various audience segments.
Creative Diversification can involve using videos, carousel ads, and interactive content. This helps in capturing attention and maintaining engagement.
Enhancing Ad Resonance requires regularly updating ad creatives based on performance data. This way, ads stay relevant and appealing, reducing ad fatigue among the audience.
Targeting Mechanisms for Audience Precision
To reach the right audience on Meta, it's crucial to use targeting mechanisms that focus on age, gender, and geography. These tools help advertisers zero in on specific groups, making their ads more effective.
Decoding Age Targeting in Ads
Advertisers can tailor their messages to different age groups. By choosing the age range of their audience, businesses can make sure the content is relevant.
For example, a clothing brand may target teens and young adults with trendy styles, while a retirement community ad might focus on people aged 55 and older.
Benefits of Age Targeting
- More relevant ads
- Better engagement
- Higher conversion rates
Using age targeting ensures the right people see the ads, improving campaign outcomes.
The Role of Gender Focus in Advertising
Gender focus in advertising allows businesses to tailor their messages based on gender. This is especially useful for products with a gender-specific market.
For instance, a makeup brand may direct ads primarily to women, while men's grooming products are aimed at men.
Key Points
- Customizes ad content
- Increases appeal
- Boosts engagement
This targeted approach can lead to higher interest and sales, as the ads resonate more with their intended audience.
Maximizing Reach through Geographic Targeting
Geographic targeting helps advertisers show ads to users in specific locations. This is useful for businesses with physical stores or services tied to certain areas.
For example, a local restaurant can target ads to people living within a 10-mile radius.
Advantages
- Reaches local customers
- Reduces wasted ad spend
- Enhances marketing efficiency
By focusing on geographic areas, advertisers can attract nearby customers, making their campaigns more effective.
