By 
I have been managing online marketing and advertising campaigns for several years. Ecommerce sites are of particular interest to me compared to B2B sites for the simple fact that it is much easier to determine the effectiveness of SEM (search engine marketing) efforts when the goal is a sale or conversion. I want to share some basic tips for small business owners who are creating or managing their ecommerce PPC campaigns. This is not advice coming from a Google Certified Ad Partner, but from an entrepreneur who knows what it takes to launch a successful eCommerce site from scratch and grow your success.
1. Have realistic expectations from the start. If it was easy to sell products online just by launching PPC advertising, every small business would be successful. The advantage of PPC advertising when it comes to SEM is the ability to target your ads to people who are searching for a similar product. The key here is “search”. For example, if you sell “hand-painted purple rocks,” you’ll likely encounter very low search volume. On the other hand, if you sell skin care products, you will find a very high search volume. Google, BING, and Facebook make their advertiser user interface very easy to use. They want you to use their service and spend money. Systems don’t automatically optimize to spend that budget efficiently. That depends on you.
I have worked with many business owners and brands who are convinced they have the next million dollar idea or product to sell. Just because you’re passionate about it doesn’t guarantee that the world agrees! Your friends, family, and colleagues may support you and corroborate your belief, however, keep in mind that they are supporting YOU. Your average customer has no personal connection to you or your brand.
2. Know your conversion rates. By looking at your Google Analytics reports, or whatever program you use to measure traffic to your site, determine how many visits or clicks need to occur before you can make a sale. This is your conversion ratio. If it takes 100 clicks to make 1 sale, your conversion rate is 1%. This is extremely valuable information to keep in mind, as it will help you determine how much you can bid or pay per click. Let’s say your average sale is $34.95, you have a 1% conversion rate, and you pay $1.00 CPC. That means it would cost you $100 in PPC spend to win a $34.95 sale. If that’s the case, something’s off and it’s time to consult with someone with experience in small business ecommerce PPC advertising.
3. Budget, Budget, Budget. As you allocate the investment to build your eCommerce site and develop your product and stock your inventory, don’t forget to allocate a budget for advertising. The most common pitfall I’ve experienced is small business owners who have spent their entire budget on developing their site and product, with little left for advertising. PPC advertising is a testing game. It’s almost impossible to launch a PPC campaign and have outstanding success from the start. Search engines value your account history. Just like gambling in Las Vegas, make sure your mindset is such that you’re prepared to part with your advertising dollars without necessarily generating revenue initially. PPC ad campaigns need to be continually monitored and tested in order to optimize them.
4. Know your audience. By design, PPC advertising means that you only pay for clicks on your ad. However, you don’t just want clicks, you want potential consumers to click. This is why setting targeting parameters with your PPC campaigns is just as important as the ad copy itself. You’re better off paying a slightly higher CPC if it means a consumer is more likely to buy your product!