High Search Volume KWs in your PPC Campaigns mostly results in high ACoS

Why the common practice of putting Researched High Search Volume KWs in your PPC Campaigns mostly results in high ACoS

ALOT of ppl come to me to find the answer to their high ACoS even when they think they are doing things correctly i.e. putting their High Search Volume KWs that they researched using KWs research tools such as H10, in a manual PPC campaign and yet their ACoS is super high.

In advertising, we call this “KW Dump”. And we, the advertising professionals, hate it above anything else. Because this is the most common problem that we run into when clients approach us to bring their ACoS down.

Let me try and explain why, but first you have to open your mind and be prepared to unlearn whatever you have learned on KW Dump till date.

The first thing to know is that there are three main types of keywords:

1) Head keywords: these are 1-2 words only, and have the highest search volume. For example “sneakers”.

2) Body keywords: these are generally phrases of 2-3 words, are more specific than head keywords, and have a lower search volume. For example “women’s lightweight sneakers”.

3) Long-tail keywords: these are longer phrases which have the lowest search volume but are very specific to your product.

This means that although head keywords will generate the highest number of search results, and therefore reach the highest number of potential customers, they might not necessarily be right for your target customers.

Long-tail keywords, on the other hand, will reach less people, are much more likely to target the right people.

There are also different types of keyword intent.

This is important to understand because the intent of the customer using the keyword may indicate whether they are your target customer.

Just like types of keywords, there are three main types of user intent:

1) Informational intent: searches for general information, whether about products or something else. Low likelihood or conversion to a sale.

2) Investigational intent: comparing products or sellers. Higher probability of converting these searches into a sale.

3) Transactional intent: searchers where the user is intending to make a purchase now. Very valuable and the highest probability for conversion.

So keeping the above information in view, do you still think targeting the Head Keywords (High SV) is a good idea in your Manual PPC Campaigns?

Do you now get the answer why the High SV KWs do not convert well and thus result in High ACoS?