While AdWords no longer has to prove itself in the BtoC world, in the BtoB market, many advertisers are simply not convinced. Too expensive, too complex, too few leads… There is no shortage of flaws that need to be highlighted. However, experience has shown us that Google AdWords also offers real potential for converting from professional to professional, provided that you set up your campaigns accordingly. Explanations!
LifeTime Value, the metric that changes everything!
When you target a BtoC population, the average basket is around 100€. Let’s imagine that your customer makes, on average, 3 purchases over his or her lifetime as a customer. In this case, its LifeTime Value is about 300€. Let’s say your margin is 25%, your Customer Acquisition Cost cannot exceed 75€.
Now let’s take the same example in BtoB. Generally, the average basket is much larger and orders are more recurrent. You are a business partner, you do not offer an impulse purchase… As a result, the LifeTime Value of a customer is considerably higher.
At the heart of your AdWords strategy is the calculation of a client’s LifeTime Value. From this calculation, your AdWords budget but also your CPA and CPC will be derived. In our example, even if you had to spend 1500€ to close a sale, the campaign remains profitable.
Unlike BtoC, we recommend BtoB to start with large budgets and then refine. The month you launch your campaigns, multiply the groups in order to aim wide. Very quickly, you will collect sufficient data to find the ideal PLC. Be careful, in this phase you must also be able to quickly handle an additional volume of requests!
AdWords BtoB, micro-targeting in action!
If targeting is essential in BtoC, it is essential in BtoB, for the good and simple reason that the targeted audience is considerably reduced. First and foremost, you need to understand your target’s needs and expectations in order to make the right connection.
Unlike BtoC, targeting generic keywords, duplicating a few ads and waiting for the customer rarely pays off! It is better, indeed, to circumscribe one’s territory in :
- identifying issues to be resolved
- excluding all requests that are too generalist, that do not lead to a professional solution
- excluding highly competitive and ambiguous requests, which are driving up the CPC
- opting for micro-targeting expressions, rather than broad queries
- working on key messages by target groups
In short, give priority to the quality of the keyword and the conversion rate, rather than the volume of traffic. Your KING will be all the better for it!
AdWords Pro, think solution rather than self-promotion!
Many entrepreneurs are proud of their creation. Eager for branding and recognition, they shout out their name/brand loud and clear. Some even base most of their communication on this issue… Risky strategy!
Unless you are a well-known and recognized brand, it is rarely your name that will make your butter. But the solution you bring. The heart of your AdWords campaign should therefore be based on a single axis: what problems does my product provide a solution to?
Based on this reflection, create different groups of advertisements, each including the response to an identified problem, itself associated with a target audience. In the same dynamic, differentiate different objectives and associate a dedicated landing page to each one.