Reading Time: 6 minutes*This post was updated on August 6, 2024.
Many PPC experts recommend that you should conduct at least one PPC audit every six months. However, some companies may need it sooner, especially if their ad returns are falling.
If you’re feeling the urge to spend more on ads because you are not getting your desired results, it’s time for an audit.
If you wait too long, you may find it challenging to sustain good campaign performance. You may also miss opportunities to maximize your returns. Problems like outdated optimization practices and poor ad copy may affect your quality scores and drive away searchers.
But with regular PPC audits, you’ll identify such issues before excessive losses.
Keep reading this blog to pinpoint when you need a PPC audit.
When Should You Do a PPC Audit?
You should conduct a PPC audit if your conversions and click-through rates (CTR) are poor. Increasing budgets without a proportional Return on Ad Spend (ROAS) is also a top sign you need one. Furthermore, you should do a PPC audit if campaign management issues become overwhelming.
Here’s a comprehensive walk-through of basic signs that you need a PPC audit:
Bad Click-Through-Rates (CTRs) and Poor Ad Relevance
You must pay attention to your ad relevance and CTR because they are vital for conversions. The more clicks you have, the more people know about your offers, and the more likely you’ll have better conversions. However, irrelevant content makes up to 83% of users less likely to respond to your ads.
Hence, you should establish a good CTR while making your ads and landing pages relevant.
Now, what’s a good or bad CTR for PPC?
Optimal PPC CTRs vary depending on your platform. According to WordStream, a good CTR for Google Ads is 6-7%+. Meanwhile, Microsoft only recommends 2% and emphasizes the need for auditing if CTR drops below 1%.
However, WordStream’s recent data indicates that Bing Ads’ CTR is 50% higher than that of Google Ads on average. So, Microsoft’s recommendation of a lower CTR is quite interesting.
That said, your industry also dictates what qualifies as a good CTR. For instance, Google Ads for legal services have an average CTR of 3.85%, meaning you should aim for 4-5%. Meanwhile, arts and entertainment average 10.67%, making a good CTR 11-12%.
You can use this overview of Google Ads’ CTR averages across industries to gauge what a good rate is for your brand:
Remember, your ad position limits your likelihood of earning clicks. So, a good CTR also depends on where your ads appear, below are CTR targets based on ad position: :
- First place: 6%
- Second place: 4-5%
- Third place: 2-3%
- Fourth place: 1-2%
- Fifth or lower: 1%
One of the top reasons for a low CTR is ads appearing for irrelevant searches.
Another issue could be having a decent CTR but getting the wrong clicks. Unfortunately, many users click on ads without adequately understanding your offers. In fact, a 2016 study found that searchers only look at 9% of digital ads for over a second.
So, you should focus on CTR in the context of conversion and not as a standalone metric. The minimum healthy CTR: Conversion ratio would be 100:2.
You’ll need to check your keywords and ad relevance to see why you have an imbalance ratio.
Declining Conversion Rates and Volume
Unexpected drops in conversion rates and volume are amongst the first signs your PPC campaign needs an audit.
Some of the reasons for fewer conversions include:
- New competitors.
- A drop in ad positions.
- Conversion tracking issues.
- Your offers aren’t in season.
- A change in your target audience.
- An increase in irrelevant impressions.
- Landing pages with unsatisfactory user experience.
- Less compelling adjustments to your ad copy and landing pages.
Pro tip: Consider the 2.35% average conversion rate for PPC as your baseline. You’ll often need to optimize for conversions below this point. It is important to review your own conversion benchmarks to see if there has been a drop to signal there is a need for optimization.
Increasing Average Costs-Per-Click (CPC)
Another reason to perform a PPC audit is an increase in your CPC. Some of the issues that spike CPC rates include:
- Inflation.
- A drop in your Quality Score.
- Algorithmic changes that impact ad positions.
- Increased competition over the same keywords.
- Seasonal increases, for instance, during the holidays.
Though you can include a few keywords with a high CPC, you’ll more effectively use your ad budget by sticking to averages.
CPC averages also vary based on the industry. Here’s an overview of CPC rates on Google Ads across various sectors:
Refine your ad spend targets by looking at your revenue per sale and conversion rate. Our B2B and B2C PPC ROI calculators can help you estimate the revenue from your sales.
Now, most industries thrive with a 5:1 revenue-to-ad-spend ratio or 20% cost-per-acquisition (CPA).
This ratio, multiplied by your revenue per sale and conversion rate, can help you identify your target CPC.
If you have a B2B company, you should factor in your internal close rate to determine a suitable CPC.
Here’s how you can calculate your target B2B CPC:
Suitable CPC = (revenue derived per sale x internal close rate x lead generation rate) x cost per acquisition
Increasing Average Costs-Per-Conversion
You’ll want to keep your cost per conversion low to maximize your profits. Still, a high cost per conversion is common.
In fact, Twitter user @okunadeolakunl1 believes that “everyone who runs Facebook ads encounters high cost per conversion at some point.”
If your cost per conversion not only rises but also exceeds your platforms or industry averages, it’s time for some tweaks.
The average Google Ads’ cost per conversion is $90.80 for display network ads and $56.11 for search network marketers. Computer Google ads lead the pack at an average of $101.40 per conversion on the search network, as this industry breakdown illustrates:
Besides your industry, your cost per conversion may surpass platform averages if:
- Your Quality Score and ad positions dropped.
- You’re using more highly competitive keywords.
- Your ads and landing pages aren’t the most relevant to your targeted searchers.
A PPC audit addresses these issues, potentially reducing your cost per conversion.
Decreasing Keyword Quality Scores and Ad Rank
Quality Score is one of the top metrics you must address should it drop. It impacts your ad positions and, hence, other stats like your CTR and conversions.
In fact, Google and YouTube Ads company Echelonn believes that with the right Quality Score, “Even the smallest brand can crush giants.”
A good Quality Score depends on your keywords and platform, though many recommend +7. However, WordStream notes that 3+ is okay for competitor keywords.
Here’s a summary of recommended Quality Scores for different keywords on Google Ads:
| Keyword Type | Recommended Quality Score |
| Branded | 8-10 |
| High-Intent | 7-9 |
| Low-Intent | 7+ |
| Competitor | 3+ |
Your Quality Scores and bid amount dictate your ad rank. So, a drop in your Quality Scores directly impacts your placements, keeping the bid amount constant.
Some of the reasons for dropping Quality Scores are:
- Low CTR.
- Ignoring long-tail keywords.
- Disorganized ad groups with irrelevant keywords.
Fixing these issues should help you raise your scores.
Campaign Management Issues
Problems with your campaign structure can catch up and affect your metrics over time. If you’re spending too much time on regular checks, it’s also best to diagnose your PPC campaign.
Here are some of the key problems to check for:
- You’re using unrelated keywords in ad groups and campaigns.
- You have too many keywords in your ad groups (don’t exceed 30).
- You aren’t targeting local customers through methods like geo-targeted keywords.
- You’re not saving time making campaign changes and managing assets with Google Ads Shared Library.
- You use poor naming conventions like symbols and special characters, improper capitalization, and duplicate ad group names.
Conclusion
The fastest way to identify PPC audit signs is to check for profit drops or if your budget exceeds ROAS. Look for dropping conversion rates and volume, CTRs, and Quality Scores. Also, check for increasing CPC and costs per action.
As you can see, many issues can compromise your PPC campaign. So, you may want to save time and ensure you address everything by hiring reliable PPC audit services.
At Vizion Interactive, we have the expertise, experience, and enthusiasm to get results and keep clients happy! Learn more about how our status as a Google Partner, along with our PPC Management, Google Shopping Ads, Social Media Advertising, Amazon Advertising, and other Paid Media services can increase sales and boost your ROI. But don’t just take our word for it, check out what our clients have to say, along with our case studies.
