Many companies run Google Ads campaigns to realize quote requests. Without requests no quotations and without quotations no new orders. This has a drawback. Is a quote request the right KPI to send advertising budget? In the ideal world, you would send Google Ads campaigns based on revenue or profit from quotes. You then focus on actual performance instead of a request. I explain why and how you can do this.
Why focus on turnover or profit from quotations?
Do not get me wrong. Making it clear from which campaigns quotation requests come in is a valuable insight. That way you learn about ‘the first step your customers take’. The problem is that you don’t know what revenue or profit this will ultimately generate and whether your advertising budget in that application will actually generate money. That is what you want to know. Then you will realize real results and spend budgets even more efficiently.
I explain it with an example:
Based on this example, you tend to allocate more budget to campaign A. This is where most of your requests come from and the costs per request are significantly lower. You present this to Sales Marketing Directors, Managers Email List colleagues and your superiors. Enthusiastically shift your budget from campaign B to campaign A. Keep those requests coming! But is this the right choice?
As you can see in situation B, there is an essential difference in the performance. Based on this, you can ask a number of questions:
- Do we attract the customers we want from campaign A?
- Why is the order value higher in campaign B compared to campaign A?
- Why is the campaign B success rate higher?
- What happens if we put more budget in campaign B?
- Which learnings from campaign B can we apply in campaign A to make it score better