Case Study: Sudden Increase in Conversion Costs​

The Challenge: One of our clients had enjoyed consistently excellent performance in their PPC campaigns, even amidst the challenging 2022/2023 real estate market. However, despite this success, they encountered a sudden spike in conversion costs.

The Solution: To address this unexpected challenge, we undertook two key optimizations:

• Segmentation with Phrase Match Keywords:

  Recognizing the value of phrase match keywords, we implemented a strategic move by creating separate ad groups exclusively for phrase match keywords. This allowed us to laser-focus our efforts and gain better control over these keywords. By doing so, we ensured that our ads were more aligned with the specific search intent of users, increasing the chances of converting potential leads.

• Adjusting Target CPA and Broad Match CPC:

  Our next step was to make adjustments in the target Cost Per Acquisition (CPA) for the ad groups that still utilized broad match keywords. This tweak served a dual purpose: it allowed our phrase match keywords to take the spotlight by showing ads more frequently, and it also had a direct impact on reducing the Cost Per Click (CPC) of our broad match keywords. Lower CPCs, in turn, were closely correlated with a decrease in conversion costs, helping us regain control over the campaign’s profitability.

Conclusion: Adaptability and a keen understanding of data trends are essential for success in PPC, especially in the real estate sector. While broad match keywords had proven to be a valuable asset for our client in the past, the shifting landscape of the market necessitated an adjustment.

By introducing phrase match keywords into their campaign and fine-tuning our CPA targets, we not only maintained our client’s competitiveness but also managed to reduce conversion costs, ensuring a positive return on investment. This case study underscores the significance of regularly assessing and adapting PPC strategies to navigate market fluctuations successfully.