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PPC Advertising Success: 3 Things to Know

Return on ad spend (ROAS) is not the most important metric to pay attention to, when measuring PPC advertising success. ROAS is secondary! Steve explains why in this 3-minute video.

The most important PPC metric is adverting cash flow, which is simply the revenue generated by campaign(s) minus the ad spend used to generate the revenue. It is calculated from the same two variables used to calculate return on ad spend (ROAS). The difference is that ad margin is calculated by subtracting cost from revenue, will ROAS is calculated by dividing cost into revenue.

Product Feed Optimization

In eCommerce Shopping campaigns, the quality of product feed optimization is critical to success. It's an underlying foundation upon which everything else in a Shopping campaign will depend.

Without a well-optimized feed the campaign will never reach its potential. Shopping campaigns with weak feeds in competitive markets will reliably fail.

Video Campaign Ads

When we develop video campaign ads it requires an extra level of effort, creativity, and attention to detail as compared to the process for developing text ads. We have a process that can be summarized as follows: select a still image (frame) from the underlying video, then develop ad copy around that video based upon the classic creative process.

Because video ads are advertisements versus direct marketing, the performance of video campaigns is even more dependent upon the ads themselves than text-based search campaigns.  So we've tested different creative approaches to invent, improve, test, and optimize display ads.

Video ads are based upon an attention-getting image (frame) from a video, that also creates a mood and tone for the ad. So this is done after we have a solid handle on the competitive positioning and targeting.

Shopping Campaign Negative Keyword Discovery

Negative keyword discovery is feature that shouldn't be neglected when targeting a shopping ad campaign.

Negative keywords applied in a shopping campaign act as an inhibitor, or overlay on the positive targeting methods. They allow us to "shape" with a bit more more precision, who the ads serve to. For example, we might exclude certain age groups and/or income levels.

In addition to using negative keywords, it may be beneficial to exclude certain targeting audiences. "Negative" audiences frequently can improve campaign performance by making them more selective. Examples might include negative in-market audiences, interests, demographics such age, gender, income level, parental, homeownership status and other demographic information.

Video Campaign Negative Keyword Discovery

Negative keyword discovery is a very useful feature that shouldn't be neglected when setting up video discovery ad campaigns.

Negative keywords applied in a video campaign overlay and inhibit the positive audience targeting. They allow us to shape who video discovery ads, and audience-targeted inline video ads serve to with more precision.

In a video campaign, ads won't show on videos that are related to the topic specified in each negative keyword.

Shopping Campaign Performance Management

Shopping campaigns require more ongoing management for several reasons.  Most eCommerce stores are frequently updating their inventory, competitive products arrive at slightly lower prices, and as a feed changes automated bidding may require recalibration. 

The Shopping platforms are constantly monitoring eCommerce campaigns that utilize their ad platform.  Typically this is done by bots and it frequently results in Merchant Center exceptions, warnings, and errors arriving in the form of unwelcome emails. We monitor Shopping campaigns for these issues and handle them as they arrive. 

Reporting and performance management is a crucial need for eCommerce advertisers. Most of our eCommerce clients receive reports monthly, detailing performance in the period vs previous periods, and highlighting work on ongoing challenges/issues.

Shopping Campaign Launch

During the period immediately after a shopping campaign launch, we're monitoring impressions and CPC's. We're also on the lookout for major issues such as a single product group consuming excessive ad spend. 

Conversion tracking is checked for functionality and accuracy. Geo-targeting is monitored for any anomalies, CPC’s are checked for any out of line behavior, and the campaign is scanned for errors or warnings.

This post-launch optimization phase typically lasts 3 to 6 weeks for an average scale shopping ad campaign. A Shopping campaign enters semi-automated "orbit" once it has transitioned onto automated bidding.

Video Campaign Launch Process

After a video campaign launch, it will tend to gain serving momentum fast. Campaign behavior after launch varies by market and campaign design, with average-size campaigns usually developing a consistent serving pattern within a few days of launch.

During the period immediately after a video campaign launch, we monitor new search campaigns closely making a series of corrective adjustments across our post-launch checklists, dialing the campaign into the type of orbit we're looking for. The campaign is continuously reporting valuable data about what's going on. That allows us to optimize the campaign early on in its engagements and minimize wasted ad spend.

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