Jul 17, 2022
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company will still make $6,000 in profit. That's a huge difference! Advertising Continue reading below Since customer LTV for B2B companies is so high, B2B companies can afford to quickly test a variety of paid search, keyword and ad campaigns. After all, their profit margin can handle a few failures. As a result, B2C companies often struggle for years to gradually improve the profitability of their campaigns. Case study About a year ago, we launched an AdWords account for a company in the B2B space. Each new client was worth between $1,000 and over $10,000 in profit, but they didn't have a particularly high close rate, so the company hoped to get leads Raster to Vector Conversion for $150 per pop. Since we knew we had a pretty big profit margin, we started with 23 campaigns, 451 keywords, 139 ad groups, and 374 ads. Now, if you've read any of my other articles here on SEJ, you know I'm not a fan of massive accounts. Obviously it was too high for the client, but we learned a lot from our experience. We started eliminating campaigns and keywords and changing ad groups, advertising content and our landing pages to maximize lead flow. Advertising Continue reading below The results? Within a month, we had lowered their cost per lead to just over $150. After two months, their cost per lead was less than $75. So, by using their profit margin to quickly optimize their paid search strategy, we were able to generate leads from AdWords at half their “ideal” cost per lead.