The first pillar of Lean AdWords has to do with minimizing the waste of inventory, for this is one of the largest sinks of wasted ad spend in accounts. To illustrate this, we are showing data from a high spend account we were called in to audit. This customers spends around $100,000 a month in ad spend to generate leads for his sales team. Each conversion represents a submission of a “contact us” form. These are then followed up on by the sales team, who attempts to close the deal. To be fair, each conversion here does not have the same value, as some of these “conversions” do not lead to a sale. Nevertheless, the data illustrates our point quite well.
In the right panel we have summed up the cost for each keyword corresponding to a number of conversions. All of the keywords that had 0 conversions had a total cost of $11,255 per month. That’s $135,060 per year if you’re counting.