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Why Google Ads Are Moving Towards Performance-Based Pricing Models
Have you ever felt that your Google Ads campaign is similar to gambling, as you struggle with your budget, you are not alone. Google Ads are moving towards performance-based pricing models, but what does this mean? Today's blog is going to answer this question for
Google Ads performance-based pricing model is where payment is determined when a specific or measurable outcome is achieved. Rather than paying an upfront fee, compensations is rewarded when the provider meets an agreed performance metric. This can be lead generation, conversions, or sales.
Performance-based pricing is sometimes referred to as results-based pricing, pay on performance, and outcome-based pricing.
Performance-based pricing models is when the business and Google Ads agree on certain key performance indicators (KPIs) to determine success. Payment is only made when these KPIs are met.
Unlike fixed pricing, performance-based pricing models ties payment to the delivery of an agreed outcome.
Performance-based pricing models are a structured process where Google Ads and the business agrees on the successful metrics, setting the payment terms, and tracking process, ensuring the desired results are achieved.
The first step of Google Ads performance-based pricing model is to determine your KPIs for success. These help you measure success and must be measurable and specific. They can range from boosting impressions or sales to increasing website traffic. The KPIs are directly linked to your business goals.
Once you have your KPIs, you need to determine how payment will be linked to performance. This helps to minimise risk, ensuring that you only pay for real results, making it less risky for any business to enjoy the benefits of Google Ads.
It's essential to track and monitor your campaigns performance, relying on real-time data to ensure your campaign is achieving the agreed KPIs.
Implementing Google Ads performance-based pricing model does have its share of challenges, but with the right approach, you can manage these challenges effectively:
Google Ads performance-based pricing model ties pricing to measurable outcomes. It's a flexible solution for businesses that know their advertising objectives. It helps to reduce risk, eliminate guess work, and ensure long-term success. Performance-based pricing models by Google Ads is an opportunity for businesses of all sizes to pay for real results. Do you need assistance with Google Ads move to performance-based pricing? Contact Genie Crawl now to find out more.
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