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What Would You Do with K in Free Advertising Spend?

What if you had $25, 000 in free advertising budget to spend on a complete PPC makeover? Where would you start?

This infographic details the top five ways that small businesses can renovate their PPC accounts to get better results from Google AdWords. Key findings from this original research include:

Small Business Advertisers Are Missing Opportunities

A typical small business wastes about 25% of their annual PPC advertising budget. Depending on the vertical, that 25% of wasted spend adds up to a lot of lost business, sales and leads:

The typical finance & insurance business loses 126 insurance quotes per year
A bed & breakfast in the travel & tourism business loses 367 guest inquiries
A shopping company loses 569 product sales
A car dealership loses 273 test drive appointments
A fitness company loses 218 gym memberships
A B2B companies loses 157 leads
A software company loses 211 enterprise software inquiries

Small Business Advertisers Show Low Account Activity

Just doing more work in your PPC account is probably the single easiest way to improve your results. But most SMB AdWords managers are guilty of laziness:

Only 1% of small business advertisers does work in their account every week
Over half (53%) of SMBs only optimize their ads once per quarter
43% of advertisers haven’t added a new negative keyword in the past 30 days

In 2013, the typical small biz AdWords account has two campaigns and 212 keywords, but only:

9 ad groups,
18 text ads, and
3 landing pages

Small Business Advertisers Need Better Keyword Research

PPC advertisers, whatever the size of their business, need to do smart keyword research, focusing on keyword relevance and keyword expansion:

Do long-tail keyword research. These more specific, targeted keywords offer less competition, lower CPCs, and more qualified clicks.
Use the right match types. Over half of small business aren’t using modified broad match at all. 1 in 4 accounts only use broad match!
Leverage negative keywords. 1 in 5 small biz AdWords accounts don’t contain a single negative keyword.

Too few keywords, too few negative keywords, and incorrect use of keyword match types lead to high amounts of wasted spend.

Small Business Advertisers Have Poor Ad Relevancy

More relevant ads get higher Quality Scores. With a perfect Quality Score of 10, you’d enjoy 80% lower cost per click and a 50% discount on cost per action. The lower your score, the more you pay – unfortunately the average Quality Score for small businesses is 5.