Pay-per-click (PPC) is an internet marketing model that entails payment of a fee by advertisers for every occasion when any of their ads is clicks. It basically entails the purchase of visits to one’s sites instead of earning those visits organically. A popular form of PPC is the search engine advertising which allows advertisers to request for their ads to be placed in the sponsored links of a search engine through bidding every time a person types a keyword that is related to the business they are offering. Whenever a visitor is sent to a relevant website after clicking on an ad, the advertiser pays a small fee to the search engine.

The single keyword ad groups (SKAGs) are a technique used to increase the ad relevance and click-through-rates (CTR) which increase the quality score of the advertiser’s keywords (Dane, 2017). SKAGs are important because they enable the customer to receive ads that are more relevant, improve the ratings of ad relevance that are given by Google, lead to higher click-through rates, provide high-quality scores, lowers the cost of each click and result in a low cost of conversion. In general, they create a high return on investment for the marketers who are advertising their products by lowering the total costs of marketing and generating more revenues.

As such, SKAGs play a crucial role in PPC advertising because they facilitate the evaluation of keywords and ads before selecting the ad which should appear whenever a customer searches for a given product or service on Google. This increases the chances of the advertiser getting their product easily located without the customer having to go through a large number of relevant search results (Parker, 2016). With SKAGs, the ratios of discrepancy are reduced first from search to keyword then from keyword to ad. This allows for search items to match the keywords and that in turn causes the CTRs to skyrocket because there are no numerous words in a single ad group that compete to stay relevant to just one ad. This way, the SKAG provides an efficient way to improve the performance of managed PPC and also allows the advertiser to enjoy a competitive edge and a strong foundation against other advertisers. In addition to ensuring that the advertiser’s website gets the most qualified visitors, SKAG ensures that the company obtains the highest number of conversions. Also, with SKAG the advertiser enjoys a good level of control and takes charge of their products which in turn ensures Google has less control. Google recommends that ideally, each ad group should have 10-20 keywords but with SKAG, only a single keyword is allowed which ensures that is less search term variance.

One example that illustrates how the SKAG technique has been successfully used to improve PPC advertising is Clicteq agency in London. The agency successfully increased the CTR of the ad group by 28.1% up from just over 4% in a time period of two months. The average quality score of the agency also increased from 5 to 8 (Patel, 2018). Similarly, the Audi car company recorded an outstanding performance in sales increase when they implemented SKAGs into the PPC accounts. There was a 22% increase in CTRs, a 50 percent reduction in cost per lead and a 106 percent increase in leads (Parker, 2016). Online marketing companies like Amazon have also successfully used SKAG improve on PPC advertising which has seen their sales grow considerably year after year. Despite having a very wide range of products that need to be sold, the company has developed templates which create highly targeted ads automatically through the use of keywords, unique points of sale and landing pages for different categories of products. SKAG has enabled Amazon to create a secret URL which generates based on the keyword searched by a customer on the search bar of Amazon (Wilpert, 2018). The customer is sent to a product page which is sorted by relevance to the keyword used. Considering the fact that Amazon advertises almost 6 million ads on search engines, it would be really time-consuming to type individual ads amounting to 6 million. The keyword being looked for by the customer magically appears in the middle of the headline thus increasing their quality scores. This technique has enabled Amazon to gain a competitive edge over other advertisers like Walmart and Target.

Having discussed the benefits of using the SKAG technique for PPC advertising, it is important to note that creating SKAG can very complex and time-consuming initially, but once created the setting up and maintaining the technique is quite simple. SKAG represents a very promising platform for advertising products online because it facilitates an immediate and assured traffic through reaching out to potential customers. Also, with the convenience and efficiency that comes with SKAG-enabled PPC advertising.

References

Dane, J. 2017. 19 reasons why single keyword ad groups (SKAGs) always win. https://klientboost.com/ppc/single-keyword-ad-groups/

Parker, W. 2016. How to supercharge your PPC with Single Keyword Ad groups. Clicteq. http://clicteq.com/single-keyword-ad-groups/

Patel, N. 2018. I increased sales when I made this one Google adwords change. https://neilpatel.com/blog/google-adwords-skag-strategy/

Wilpert, C.V. 2018. Sumo Growth Study: How Amazon generates $136 billion in sales. https://sumo.com/stories/amazon-marketing

SKAGs are important because they enable the customer to receive ads that are more relevant, improve the ratings of ad relevance that are given by Google, lead  higher click-through rates, provide high-quality scores, lowers the cost of each click and result in a low cost of conversion.

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