How to run a successful paid media campaign without getting into a bidding war

Running a paid media campaign can be an effective way to drive traffic, generate leads, and increase sales. However, it can quickly become expensive, especially when you’re competing against others in the auction space. The good news is that even with a lot of competition, you can still run profitable PPC campaigns by focusing on strategic planning and smart execution. In this blog, we will guide you through the essential strategies to maximise your performance without getting into a bidding war.

Strategic Budget Allocation

Careful budget allocation is crucial, especially if you’re working with high cost per clicks. Rather than spreading your budget thin across multiple platforms, focus on one or two that are most relevant to your target audience. For most businesses, Google Ads is typically the go-to platform due to its targeting options and high direct response rates, however, if your objective is awareness then you may want to consider social platforms like Meta or TikTok.

Remember, you don’t need to advertise all your products out of the gate. Instead, focus on the products that will generate the best return for your business versus the cost per click estimates given by each platform. Once you’ve got a foothold, look to expand your product offering and potentially your spend.

Utilise Long-Tail Keywords

One of the most effective ways to utilise your budget is by focusing on long-tail keywords. These are more specific terms that tend to have lower-competition. You will find that these are often less expensive per click compared to broad, high-volume keywords. For example, instead of bidding on a highly competitive keyword like “running shoes,” you might target a long-tail keyword like “best running shoes for beginners.”

Long-tail keywords may have lower search volumes, but they often attract users with higher intent. This means that the traffic you do get is more likely to convert, offering a better return on investment (ROI). 

To find long-tail keywords, use tools like Google’s Keyword Planner. Look for keywords with a balance of search volume and low competition, and incorporate them into your campaigns. Long-tail keywords should reflect the copy on your website and in your ads. This will lead to better relevance and quality scores, which can ultimately reduce click costs. This is especially helpful if there is a lot of competition for a particular keyword you’re targeting. 

Implement Exclusions 

Negative keywords are a powerful yet often overlooked tool for maximising your budget. By adding negative keywords to your campaigns, you can prevent your ads from showing up in irrelevant searches, thereby reducing wasted spend. This opens you up to using broader match types for the keywords you’ve selected, which in turn increases your reach and keeps cost per clicks lower.

For instance, if you sell high-end furniture, you might want to add “cheap” or “discount” as negative keywords to avoid clicks from users looking for low-cost options.

To identify potential negative keywords, regularly review your search term reports to see which queries triggered your ads. If you notice that certain terms are generating clicks but not conversions, consider adding them to your negative keyword list.

Exclusions work in a similar way. You can exclude groups / categories users fall into that wouldn’t be relevant to your business. For example, if you are a mortgage broker targeting first time buyers, you can exclude users who are homeowners, or those older than 45 who are more likely to already have a mortgage.

Leverage Geographic Targeting

Geographic targeting, or geotargeting, is another strategy to optimise your budget. By targeting specific locations, you can ensure that your ads are shown to users who are most likely to convert, rather than spending money on clicks from users outside your service area. This may not immediately sound like a good strategy to minimise cost per clicks, however if you’re targeting a larger geographical area like the USA, you’ve typically got enough starting reach to identify those areas with the perfect balance of conversion rate and low competition.

Start by analysing your customer base to identify the regions where most of your sales or leads come from. If you’re a local business, focus your paid campaigns on your city or region to prevent wastage, and combine with a maximise clicks bid strategy. If you operate on a larger scale, you can start by prioritising areas where you’ve seen higher engagement or sales and then identify which of these has the lowest competition. 

Optimise Ad Placements and Scheduling

Optimising where and when your ads appear can also help you avoid bidding against every competitor, and identify any gaps in the auction. Start by analysing performance data to identify the best-performing times and placements for your ads. If you notice that your ads perform better during certain hours or days of the week, consider using ad scheduling to limit your ads to those times.

For example, If you’re a B2B service, you might only want to run on weekdays between 8am and 6pm when other businesses operate.  But this doesn’t need to be where you stop optimising. Once you’ve been running during working hours for a while, you can tailor the bidding to days or hours where cost per clicks are typically lower and you’re still picking up conversions.

Additionally, review your ad placements if you’re running display or video campaigns. Not all placements are created equal, and some may lead to low-quality clicks that don’t convert, but are still expensive. Exclude low-performing placements and focus on high-performing ones to maximise your budget.

It’s Not About Spending More, But Spending Wisely

Running a successful paid media campaign without breaking into a bidding war is possible with the right strategies. By focusing on budget allocation, long-tail keywords, geographic targeting, negative keywords, and optimising ad placements, you can achieve significant results while outsmarting your competition. 

Remember, the key to effective paid advertising is not necessarily how much you spend but how wisely you allocate your resources. It’s better to see great results from a refined campaign than mediocre results across multiple platforms.