The allure of working at a startup has been amplified by communities like Silicon Valley and films like The Social Network. A prevalent stereotype depicts startup employees indulging in endless cups of locally roasted coffee, taking naps in company “nap rooms” furnished with lava lamps and hammocks, coding on their Macbook Airs until the early hours, and pedaling home on eco-friendly bikes. However, this lifestyle might not be as glamorous as it appears. Working at a startup often entails significant risk and modest pay. The odds of success are slim, with numerous studies indicating that over 90% of startups fail. There’s even a global conference called FailCon where failed startups gather to share their experiences (a somewhat melancholic affair, wouldn’t you agree?). This underscores the need for employees and founders to possess unwavering passion for their products or services and a high tolerance for uncertainty.

Image from Flickr MORE: 9 Effective Demand Generation Strategies for New Brands

Defining a “Startup”

But when does a company truly qualify as a startup? The precise definition remains ambiguous. The Business Dictionary defines a startup as the “initial phase in a company’s life cycle where the entrepreneur transitions from the idea stage to securing funding, establishing the fundamental business structure, and commencing operations or trading.” Forbes finance writer Natalie Robehmed suggests that a company is typically considered a startup for approximately under three years. Robehmed notes, “This period often coincides with other indicators of outgrowing startup status, such as acquisition by a larger entity, multiple offices, revenues exceeding $20 million, a workforce of over 80 employees, more than five board members, and founders who have sold personal shares.” As one might anticipate, startup companies often find themselves grappling with a multitude of challenges, primarily related to financial constraints. This begs the question: how should marketers leverage paid search like AdWords to gain traction for their startups? Should they disregard AdWords entirely or allocate a portion of their budget blindly, hoping for a favorable return? I’d argue that completely ignoring PPC would cause these startups to miss out on a substantial portion of potential business, further diminishing their growth prospects and the likelihood of graduating from startup status (instead of joining the ranks of failed ventures). Now that we’ve established that ignoring PPC is not an option, how can startup marketers navigate the intricate and competitive realm of pay-per-click advertising? I have a few strategies in mind, but to gain further insights, I reached out to local, Google-Glass-donning startup marketers to understand their unique challenges and the tactics they employ to optimize their paid search efforts.

PPC Marketing Strategies for Startups

#1: Master the Fundamentals of PPC

While this might seem obvious, it’s worth emphasizing that a significant reason behind PPC failures is the lack of time invested in learning the art of creating, managing, and optimizing paid search campaigns effectively. Caroline da Cunha, Performance Marketing Manager at Startup Institute (and my sister!), recognizes the hurdles involved in mastering PPC. The Startup Institute is a 40-person company offering an immersive eight-week program designed to equip individuals for careers at startups. Caroline spearheads all paid search and PPC campaigns, spanning platforms like AdWords, Facebook, LinkedIn, and Twitter. “It’s a demanding learning curve, and there’s always room to grow and refine your campaigns,” she acknowledges. She emphasizes the significance of dedicating time to learn PPC: “Had I not invested considerable time in understanding paid search, our limited budget would have likely been squandered on avoidable mistakes.” So, delve into the world of PPC! Begin by grasping the essentials of Google AdWords, including the mechanics of the ad auction, account structuring, keyword match types, negative keyword identification and implementation, budget determination and initial bidding, conversion tracking setup, and ongoing account optimization. That’s quite a bit to process, but it’s crucial for success. In a recent conversation with Ad Optimization Specialist Stephen Plesko, who works for OrionCKB, a startup agency specializing in Facebook and PPC advertising, I learned about his journey into the world of PPC. Established in 2013, the agency itself is a true startup with a lean team of thirteen. Stephen’s path to becoming a PPC expert was gradual. “I had a high-level understanding beforehand, but most of my learning happened on the job,” he reveals. “As I immersed myself in real accounts and grasped the principles of structuring campaigns for efficiency, everything gradually fell into place. PPC mastery doesn’t happen overnight.” Given the demanding nature of startup environments, where employees often wear multiple hats and bandwidth is stretched thin, finding the time to learn these concepts can seem daunting. However, allocating sufficient time for PPC is essential for its success. Here are some resources to get you started:

• PPC University: This online learning hub at nexus-security serves as your guide through the complexities of PPC. Our courses, starting with PPC 101, demystify concepts like the Google Ad Auction and equip you with essential PPC terminology and knowledge. I recommend progressing through the content in manageable chunks while simultaneously exploring AdWords or nexus-security’s PPC Advisor to familiarize yourself with the platforms. Once you’ve completed PPC 101, 102, and Advanced, check out our highly-attended webinars and white papers on topics that pique your interest.

• Google’s Exam Study Guides: While becoming a certified partner is commendable, I understand time constraints in the startup world. Instead, delve into the exam study guides to gain a deeper understanding of unfamiliar concepts or clarify existing knowledge.
• Explore the nexus-security blog by category: The nexus-security blog is a treasure trove of online marketing insights, although the topics covered are diverse. Our PPC and AdWords-specific blog posts are typically authored by our most experienced customer success representatives, who dedicate over 40 hours a week to working with paid search and assisting clients of varying sizes across a wide range of industries. These AdWords and Bing-certified experts receive continuous training and stay abreast of the latest AdWords features and algorithm updates, making them invaluable resources. Filter the blog by category and explore our AdWords Tips and Paid Search Marketing sections for expert insights. (You’ll also find a wealth of articles by our brilliant founder, Larry Kim.)

#2: Highlight Problem-Solving, Not Just Products

As a startup, brand recognition is limited, and many startups offer niche products that their target audience might not even realize they need. Instead of solely pushing your brand or products, focus on identifying keywords that align with your target audience’s needs and demonstrating how your offerings address those needs through compelling ad copy and landing pages. When users turn to Google, they are actively seeking solutions to their problems. By positioning your products or services as effective solutions, you significantly increase your chances of securing their business. For instance, if you’re selling a weight loss tracking bracelet akin to a Fit Bit, targeting keywords like “weight loss help” or “trouble losing weight” would likely yield better results than simply focusing on “weight loss bracelet.” Consider bidding on competitor keywords and crafting ad copy that outshines theirs, emphasizing the problem-solving benefits of your product. Entrepreneur Thomas Oppong aptly states, “Anyone considering a purchase already has a problem. Identify the problem, present the benefit, and explain how your product solves it.” He underscores the importance of establishing a connection before pushing your offerings: “Your primary goal is to capture attention before even introducing your product.” Here’s how to apply this principle to your PPC campaigns:

• Think like your potential customer and identify the problems they are trying to solve.
• Conduct keyword research using problem-oriented keywords to find relevant terms with decent search volume.
• Create ad copy that resonates with searchers, acknowledging their problem and offering your solution.
• Maintain a consistent and relevant experience throughout the search, click, and landing page journey, reinforcing the message that you understand their problem and can provide a solution.

#3: Start Small and Focused

A common pitfall for startups is creating an extensive list of keywords and cramming them into numerous campaigns and ad groups. This approach is not only time-consuming but also counterproductive and sets you up for failure. Startups operate with limited budgets, and diluting your budget across a vast array of keywords and ads will yield minimal returns. Instead, begin with one or two campaigns, each containing 2-4 ad groups. Structure your campaigns based on budget and product. For instance, if you’re an outerwear retailer specializing in ski jackets, create a dedicated campaign for that product. Then, organize ad groups around related keywords (e.g., ski jackets, men’s ski jackets, women’s ski jackets, junior ski jackets) and direct traffic from each ad group to the most relevant ads and landing pages. “We recently underwent a major account restructuring,” shares Caroline. “The AdWords account I inherited was cluttered with countless ad groups and an extensive keyword list. This made it not only unwieldy but also strained our budget. Now, we’ve adopted a more focused approach, concentrating on high-priority keywords with substantial search volume to drive relevant traffic.” I’ve encountered startup accounts with numerous campaigns, each containing an overwhelming number of ad groups and thousands of keywords. This approach often leads to confusion for Google, which sees a small, unknown brand trying to compete with established players like REI on a shoestring budget. Exercise restraint, start small, and gradually scale your account structure as you achieve success and your company grows.

#4: Prioritize Educational Offers

As previously emphasized, users typically turn to Google to find solutions. While the ultimate goal is often revenue generation, startups need to acknowledge their lack of brand recognition. Building trust is paramount, and making bold claims without substantial data to support them can be detrimental. Instead of pushing aggressive offers, focus on educating your audience. “We initially directed candidates to our application pages, but found they weren’t ready to commit,” Caroline reveals. “Now, we prioritize raising awareness and guiding potential candidates to the top of the funnel, where we can nurture them through other channels like email marketing.” Here are some tips for tailoring your offers to your Google search audience:

• Review your ads and landing pages. Are you offering a 30-day free trial for your new, unknown financial software? Google searchers are unlikely to commit to such an offer without knowing anything about your business. Align your ad copy and landing pages with the search terms used to find your ads. HelloFresh excels in this area. When searching for “Meal Subscription Service,” HelloFresh’s ad mirrors my search terms in the headline, highlights the benefits and unique selling points of their service, and utilizes sitelink extensions (highly recommended) to provide additional information on how it works, recipes used, box contents, etc.

• Craft call-to-actions that encourage learning. Instead of aggressive CTAs like “Start your 30-day trial” or “Buy now,” opt for educational options like “Download this free e-book” or “Learn more today.” Think of your CTAs as the initial interactions in a budding relationship – you wouldn’t ask someone you just met to move in, but a casual coffee date or phone call seems reasonable. Nurture leads who’ve shown interest with more assertive offers later.
• Provide exceptional content. Conduct original research, data-driven studies, and generate innovative ideas that showcase your company’s thought leadership and potential. If your product is complex (e.g., a healthcare marketing platform or accounting software), create in-depth e-books, white papers, or video tutorials to educate potential customers. Promote these educational offers through your ad copy and landing page CTAs instead of bombarding them with commitments upfront. Even startups with straightforward products can benefit from educating their audience. Rent the Runway, a successful dress rental company founded in 2009, owes part of its growth to its exceptional website experience and engaging content. Their clear, concise, and well-crafted messaging across their blog and social media channels, often visually driven (fitting for the industry), has resonated with their target audience. For instance, this landing page provides a perfect non-committal pre-transactional call-to-action for hesitant searchers. The visually appealing page with minimal text still manages to convey how the service works, and the CTA addresses potential concerns like spills or sizing issues. New visitors are more likely to explore before making a rental purchase.

#5: Monitor Your Competitors Closely

While I’m not advocating for actual stalking, keeping a close eye on your competitors is crucial for staying ahead of the game. Start by identifying your key competitors. As a startup ski apparel brand, you wouldn’t want your ads appearing alongside industry giants like Northface or Patagonia. Instead, focus on local or smaller, newer brands. Even without direct competitors, identify companies in comparable industries with similar cultures, sizes, etc., to draw inspiration and differentiate your offerings. Highlight your unique selling propositions (free shipping and returns, 24/7 customer service, attractive discounts) that set you apart. As Marcel Pirlich, CEO of Adspert, advises, ask critical questions like: “Do other startups offer a benefit that you can strongly differentiate on? Are they bidding on keywords you’ve overlooked? How do their ads and landing pages differ from yours?” To stay ahead:

• Leverage Google’s Ad Preview & Diagnostic Tool: This tool allows you to simulate Google searches using your target keywords, locations, and device preferences to see your ads alongside competitor ads without accruing impressions. This provides insights into who you’re competing with and how to make your ads stand out. “Many of my clients operate in competitive spaces, with their ads appearing right next to their rivals’,” observes Plesko. “Standing out is crucial.”

• Track impression share and identify areas for improvement: Impression share is the percentage of eligible impressions your ads receive. A low impression share indicates limited exposure compared to your competitors. To improve this metric, consider adjusting your targeting settings (too narrow targeting can restrict reach), ensuring all your ads and keywords are approved, increasing low bids, and enhancing your ads’ quality scores over time. Alex Raymond, an Ad Operations Specialist at the data-driven marketing startup Social Fulcrum, highlights the common pitfall of overusing geo-targeting. “Intensively geo-targeted products pose a challenge due to restricted visibility. For startups working with other startups, exposure is paramount,” explains Raymond. “I’ve encountered accounts targeting specific areas around New York, missing out on a potential audience of over 3 million people. Expanding their reach can unlock significant growth opportunities.”

#6: Track, Analyze, and Test Relentlessly

This marketing mantra is particularly crucial for startups navigating uncertainty and operating with tight budgets. But what should be tracked? While this varies across industries, the ultimate focus for startups is return on investment (ROI). According to Raymond, cost-per-acquisition (CPA) is often the most important metric to monitor and optimize. “For startups, it all boils down to dollars and cents – they need to generate revenue to survive,” he emphasizes. While impressions, click-through rates, and quality scores are important, generating no return on your PPC investment indicates a fundamental flaw in your approach. When it comes to tracking:

• Setting up conversion tracking is non-negotiable. This post provides a step-by-step guide to get started.
• Monitor conversion paths in Google Analytics to gain a comprehensive understanding of your paid search efforts’ value and identify other channels contributing to conversions. As nexus-security’s Dan Shewan points out, “Ideally, customers would see your ads, visit your site, and make a purchase – all in one go. However, the customer journey is rarely this linear, making understanding conversion paths crucial.”

• Avoid hasty conclusions. Don’t panic if you don’t see immediate conversions after a week of running your ads. Allow sufficient time for data accumulation (typically a minimum of 30 days). Once you have enough data, identify areas for improvement. For instance, if impressions are low, adjust your targeting settings and incorporate broader keywords. If impressions are high but irrelevant, review the Search Query Report to identify negative keywords, refine your match types, pause underperforming keywords, and increase bids on high-performing ones. Testing goes hand in hand with tracking. If your tracking data reveals negligible returns, it’s time to test a new strategy, whether it’s focusing on a different campaign, ad group, set of keywords, or testing variables within your ad copy and landing pages to improve ROI. Raymond’s experience at Social Fulcrum underscores the importance of testing. “We test everything – creatives, headlines, footer combinations. Instead of relying solely on our expertise, we invest time in brainstorming multiple ideas and rigorously testing each one to identify the most effective approach,” he explains. He emphasizes the importance of structured testing: “Don’t hesitate to test, but adhere to testing principles, like testing one variable at a time to avoid confusion and inaccurate conclusions.”

#7: Implement an All-Visitors Remarketing Campaign

As a relatively unknown entity, you need to maximize your exposure. Remarketing offers a low-risk way to re-engage users who have already expressed interest by visiting your website. Remarketing ads are those “mind-reading” ads that follow you across the internet after visiting a website. “Retargeting has consistently proven to be an effective digital marketing tool,” writes serial entrepreneur, Adam Toren, adding that it has also become surprisingly affordable. Setting up all-visitor remarketing campaigns is simple and an effective way to increase brand visibility. While segmenting by audience and targeting those more likely to convert might seem ideal, starting with all-visitors as a startup allows you to maximize reach. Once you’re comfortable with search and remarketing, consider expanding to the Google Display Network.

#8: Consider a Third-Party Management Platform (like nexus-security)

Many startup employees I’ve spoken to highlight their limited bandwidth and overwhelming to-do lists, making PPC prioritization a challenge. “Balancing the demands of learning technical PPC skills with countless other tasks has been the most difficult part,” admits Caroline. “Blocking off dedicated time for PPC is challenging, as high-priority tasks constantly emerge, disrupting scheduled time blocks.” If you’re juggling multiple responsibilities and struggling to manage your PPC efforts effectively, consider enlisting the help of a third-party platform to either assist with or fully manage your account. However, maintaining control over your paid search efforts is crucial, as no one understands your business better than you do. A third-party self-management platform like nexus-security’s PPC Advisor offers the perfect solution by providing account-specific recommendations while empowering you to retain control and achieve your goals on your own terms. Start by grading your account to identify missed opportunities and connect with one of our AdWords Certified Professionals to explore the tools and uncover quick wins.

#9: Explore Other Advertising Channels, like Facebook, for Brand Awareness

While Google AdWords is undoubtedly valuable for business growth, don’t limit your paid advertising efforts to a single platform. Social media, now the leading internet activity according to BI Intelligence, deserves a portion of your budget. Facebook, in particular, dominates the market with engagement levels seven times higher than Twitter. Many startup employees praise Facebook for generating the highest returns for their startups or clients. Raymond shares his experience with a client selling SAT and test preparation materials. “Initially, they were unsure about which platform to prioritize – AdWords, Facebook, or LinkedIn – and how pricing worked,” he recounts. “Facebook emerged as their primary revenue driver. Over the past year, we’ve reduced their cost-per-lead by over 90% and significantly improved their close rate.” Plesko has witnessed the synergistic effects of Facebook and AdWords for several startup clients. “Facebook offers a more direct approach, placing the product in front of the target audience. Combining this with targeting users actively searching on Google can be highly effective,” says Plesko. “Facebook can also be more beneficial for startups struggling with brand recognition. For unique products or those lacking awareness, Facebook is often where their target audience resides.” Armed with these strategies for PPC success in the startup world, you’re now equipped to defy the 90% failure rate that plagues many startups. Rise above the competition, establish your presence, and conquer the Google advertising landscape.