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Best Practices for Portfolios: Improve ROI
Advertisers with Media Optimizer Premium Only
Usually, a portfolio will get better ROI at lower spend levels. When spend is on the lower end, the optimization capability invests in the most efficient keywords/ads, which results in a high portfolio ROI. As spend increases, the optimization capability starts investing in keywords/ads with lower efficiencies, and thus the portfolio ROI decreases.
The optimization capability ensures that your portfolios earn the most revenue within the existing portfolio configuration/structure and quickly respond to marketplace and seasonality shifts by adjusting keywords models. If your current campaigns, landing pages, business model and budget, and competitive conditions in the marketplace remain the same, your ROI can't improve because the optimization capability is already achieving the maximum possible revenue for the specified spend level or target. For growth within the same marketing channel, your campaigns or your business model must become more effective than they are currently.
To improve ROI, consider the following:
Use simulations to determine the right spend targets for your various portfolios based on your ROI target. Account managers and agencies can generate simulations.
Adjust portfolio budgets as needed when market conditions change, because the forecasts will change.
To enable your portfolios to produce more at the same spend levels, consider adding new search keywords, evaluating keyword match types, setting up Google content campaigns, adding negative keywords based on findings in the search term report, analyzing your competitors' ad copy and improving your own messaging to compete, and reevaluating landing pages to improve conversion rates.
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