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How to Optimize Your PPC Campaign For SaaS Products

How to Optimize Your PPC Campaign For SaaS Products

The usage of SaaS products has exponentially skyrocketed over the years. So much so that companies have reportedly spent over $343 k on an average on SaaS products every year.

The rapid growth is a result of companies collaborating with PPC or the Profit per Click marketing style. While this may be great news, it brought about a massive increase in competition in the SaaS product market. This, in turn, leads to the PPC SaaS campaigns. 

Before jumping into the possible reasons for your PPC campaign for SaaS products failing, let’s get an understanding of what baselines should be kept in mind to keep a check on your performance. 

How to Incorporate a Primary Baseline to Measure Your SaaS Product PPC Performance?

You must establish a standard for measuring the performance before starting work on a SaaS business through PPC. You must settle down on a limited number of these baselines for measurement of performance! Why? Because it is difficult to follow too many of these metrics, this could lead to you focusing on multiple trending metrics instead of those that are perfect for your campaign.  

Hence, you must limit yourself. The top three best essential baselines to measure your SaaS product PPC performances are as mentioned! 

 Calculating Total Ad Budget

Before you start raking in customers and start making money, you will have to think about maintaining a steady cash flow. To ensure your business is stable, you must calculate the money you will be investing! 

You can calculate the total Ad budget by using the formula mentioned below. 

 The target number of closed deals per month x Target CAC or the amount you will be paying for each customer 

For example – If your targeted CAC is $2000 and you have managed to close two deals in the month, add these numbers to the formula, and you will get your total ad budget to be $4000. 

It is a critical baseline measurement to keep track of your recurring costs, whether you’re adding to them or losing them. 

 Calculating Number of Clicks Needed

Calculating the number of clicks or the click rate helps you know the frequency with which people are seeing and clicking on your SaaS PPC advertisement. A higher number of clicks is a clear indication of your PPC advertisement doing good. 

Following the formula mentioned below, you will find out how many clicks you are garnering. 

Clicks required- Demos required per month/ Visitors to demo conversion rate. 

Let’s put this formula into action! Say your website visitor to demo conversion rate is about 5%; this is your denominator for the clicks you need. Now let’s calculate the number of demos required per month. 

All you will have to do is divide the total deals you closed in the month ( for this equation, it would be 2) by the demo conversion rate. Let’s assume your demo conversion rate is 10%. You would get 20 and that is the number of demos you’ll require per month.

How many clicks does that make? Now divide these 20 demos per month by 5%. Your result would be- 400 clicks.  – Read more

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