Smaller companies often face an uphill battle. They have limited funds, scarce resources, and spend countless evenings researching terms like “grassroots” and “bootstrap.” Even with inspiration from business gurus, competing against industry giants can feel like an insurmountable challenge.

But don’t despair! There are ways to succeed in pay-per-click (PPC) advertising even with a tight budget. This post will use a real-world example (a client in the nexus-security field) to demonstrate how to make it work.

Selvera is a small company providing personalized weight management programs that combine cognitive behavioral therapy, dietary monitoring, and home-delivered meals. These comprehensive services come at a price, but they deliver: 90% of their clients achieve lasting weight loss.

…which surpasses the effectiveness of certain alternatives. Despite impressive success once clients sign up, the cost and limited advertising budget in a highly competitive market (competing with giants like Nutrisystem, Medifast, and Jenny Craig) made attracting new customers a challenge. Our solution involved exploring niche areas within the weight loss market to develop a high-return search engine marketing (SEM) strategy.

Strategy #1: Identifying Highly Targeted Keyword Niches

We used SEMRush and Excel to analyze competitors and pinpoint an untapped segment within the weight loss niche. Top rankings for general keywords like “best weight loss solution” often require a cost-per-click (CPC) exceeding $15. However, keywords related to weight-loss-related medical conditions were significantly cheaper.

After researching medical conditions affected by weight, we found that keywords related to diabetes, such as “diabetes weight loss solution,” had CPCs around $2 and higher conversion rates compared to generic terms. By shifting spending from expensive general terms to keywords specifically targeting individuals with diabetes seeking weight loss, we significantly reduced the account’s average CPC. Adjusting ad copy and creating a landing page tailored to this new target demographic also yielded positive results.

Given its success in traditional search, we implemented a similar strategy on the Display Network using managed placements.

Strategy #2: Leveraging Targeted Managed Placements

The Google Display Network can be intimidating for smaller businesses. While it offers brand growth opportunities, it’s not always the most cost-effective paid search channel for driving conversions. Managed placements provide greater control over ad placement on the Display Network compared to keyword or topic targeting, making it ideal for budget-conscious businesses.

Straight from the horse’s mouth: “[Managed placements] allow you to specifically choose websites, videos, and apps within the Google Display Network where your ads will appear.”

By using targeted text and banner ad creatives, the Selvera account achieved success across a carefully selected list of managed placements. One particular placement, combined with a diabetes keyword context target, generated 44 converted clicks in just 30 days. This success on the Display Network further reduced campaign CPCs, dropping from $2.02 to $0.28 within 60 days.

Strategy #3: Utilizing Demographics to Your Advantage

While women click on weight-loss-related ads more frequently than men, men convert at a much higher rate when they do click. We used this insight to create a display campaign, employing the techniques mentioned earlier, specifically targeting male audiences.

We began with playful banner ads (shown below) displayed on dating sites and personals. Clicks were incredibly affordable, ranging from $0.08 to $0.16, and click-through rates improved. Remarkably, the campaign’s CPA was just over $14 (compared to the account-wide CPA, which was three times higher). This success led us to expand the campaign, experimenting with topic targeting directed at male audiences. However, this proved less effective than managed placements in terms of both conversion volume and CPA.

Surprisingly, replicating the campaign with minor adjustments to target a female audience yielded drastically different results. Despite higher impressions, the ads received fewer clicks, and we tracked only a single conversion over an entire month. This highlights how even a single variable change (admittedly a significant one in this case) can dramatically impact outcomes.

The Client’s Results

Since early April 2015 (when we fully implemented these initiatives), Selvera has experienced a 127% surge in leads generated through PPC (from 100 monthly leads to 227 monthly leads), as shown below:

Consequently, CPA has plummeted by 63%, dropping from $94.00 to $35.17 (see below):

In July, typically a slow period for the weight loss industry, our efforts resulted in Selvera’s most successful month on AdWords to date. This impressive performance underscores the effectiveness of innovative thinking in PPC.

We hope that Selvera’s success story inspires you to view the Display Network in a new light. Even without a massive budget to blanket the internet with banner ads, you can still leverage advanced targeting options to make the Display Network work for you. By investing time in understanding your target audience, you can boost conversion volume and reduce CPA.