Video 52: Decreasing Cost-Per-Click for Insurance Terms
*Hi, it’s Aaron from AgentMethods talking about insurance agent websites, and specifically I’ve been talking about pay-per-click advertising the past few days. Yesterday, I talked about how to calculate the return on investment of your pay-per-click campaign, and I want to talk some more about the different components of the ROI formula to help you increase your return on investment. *
And so first what I want to talk about is your cost-per-click, or the cost associated with every time somebody clicks on one of your ads to your site. And this is where the expense lies. This is where things can really, really get costly; you can lose a lot of money very fast. And I’ve gotten some comments back from people from the past few videos who have mentioned that they’ve done some pay-per-click advertising and they saw that really quickly they cost-per-click started a dollar and a couple of dollar, and then scaled up to 30 to 40 bucks per click, and certainly in things like auto and PNC, we’ve seen cost-per-click rate go through the roof because the carriers have gotten in the game and they’re trying to buy all the traffic themselves. But the same thing is true in life and health and disability, other products, as well; that you can see cost-per-click can really get out of control really fast. And so I just want to give you three strategies you can use to decrease your cost-per-click and hopefully get that ROI equation balanced so that you’re seeing a positive return.
*And so I’ve got these three strategies listed out. The first one is relevance and looking at the relevance of your campaign, starting at the keywords you’re bidding on, and then going through the ad and then going into the landing page, and ending in the part that you’re selling. You need to have a very visible, very transparent, very clear path all the way through, so you should look at the keywords you’re bidding on and make sure that they’re directly relevant to the product that you’re selling and that they’re in the ad, preferably in the headline and the text beneath it, that you’re posting, and that the ad is relevant to the landing page that you’re driving people to. And so on the landing page, you’ve got the keywords in the title tag and in the body content, and it’s also relevant to the product that you’re selling. You want to have that line straight through and make sure that the campaign is really clearly focused around that. And what that’s going to do is it’s going to increase your quality score, it’s going to increase just sort of the overall customer perception of the campaign, and that’s going to play into sort of your multiplier and how your cost-per-click is calculated. The more visible, the more clear, the more direct the path, the actual lower the cost-per-click would be. *
The second one is to reduce the scope of your campaign, and by reduce the scope, I mean two things. The first one is your geographic scope to try different geographic regions. And try cities, try states, try out different ones to see how the compare, and figure out if maybe there’s certain markets where you can get that cost-per-click to be more what you’re targeting versus other. Maybe there’s others that are more competitive, maybe there’s somebody else who’s bidding a lot for certain keywords in a certain market, and so reduce your scope. There’s also another way you can reduce your scope, which is the time your ads run. And most agents are working during the business day, nine to five, and so they want the ads to run then, as well, because they want to get those leads while they’re working. You might try running evenings, late at night, over weekends, sort of off peak hours because you’re going to have less competition advertising and you’re also going to have more consumers out shopping. People are doing these sorts of tasks, looking at insurance, looking for results in the evenings, in their free time, on the weekends, and so you can be there to meet them while your competition is all off not working. So reduce your scope.
*And the third is to focus your keywords. And we talked about being specific in different groups, but zeroing in on your keywords to be as targeted as possible and try to really not just search for life insurance, but search for life insurance Kentucky or term-life insurance Kentucky, affordable term-life insurance Kentucky, etc. The more specific you are, the fewer bidders are going to be on those keyword phrases. Some other things you can do to increase specificity in your campaigns, one is to add negative matches, where you can say, “exclude any searches that have these keywords.” So, for example, you might be bidding on the phrase life insurance, but you’ll want to have a negative match for life insurance career and life insurance training because those are words that people could be searching for who aren’t going to be your prospects. And so you want to have those negative matches so you’re not going to be paying for clicks from those words. And another thing you can do is you can go exact match, which will only had your ad show for that exact phrase that you have bid on as opposed to variants that include the words, not a phrase, and so focusing your keywords. *
So these are three strategies you can use to reduce your cost-per-click. It’s important to make sure that you’re kind of cranking this number down continuously because if you just let a campaign run, you’ll find that over time other bidders are going to get in the game, consumer behavior changes and you’re going to see your cost-per-click will keep drifting up. So make sure you go – make sure you watch this like a hawk and you’re constantly cranking down to get that number as low as possible because without a low cost-per-click, without a reasonable cost-per-click, you can’t make your ROI positive.
So that’s what I’ve got today. I’m going to have more about ROI for pay-per-click campaigns insurance websites tomorrow. Thanks for watching.