Solved: Metrics to Determine if Google Ads Is Worthwhile

Hi there,

Thanks for reaching out! Happy to give you some initial thoughts and guidance regarding your plans for Google Ads for your B2B SaaS platform in the project management space. It sounds like a great project, and I can definitely understand wanting to make sure your marketing budget is being used effectively from the start. Figuring out the key metrics is a sensible move. Let's get right to it.

We'll need to look at ad click to free trial signup...

First things first, and this is absolutely crucial, you've got to keep a laser focus on the conversion rate from that initial ad click right through to someone actually signing up for your free trial. This is your North Star metric, innit? It's the one number that tells you whether your Google Ads are actually pulling their weight. I've seen a lot of people not cover the basics and then complain about performance - it's a surefire way to waste money if you're not tracking this properly.

Think about it this way: you're forking out cash every time someone clicks on your ad. If you're paying, say, £5 a pop and only one in twenty of those clicks results in a trial signup, that's effectively costing you £100 for each new trial user. Ouch. You then need to do some proper digging to figure out what an average trial user is actually worth to your business over their lifetime. Are they likely to convert to a paid plan? How long will they stick around? Once you've got a handle on that lifetime value (LTV), you can then make a much more informed decision about whether that £100 customer acquisition cost (CAC) makes good business sense. A lot of people I see fail at doing this step - and this is where they can fail.

If your CAC is higher than your LTV, you're essentially losing money with every new signup. Nobody wants that, do they?

I'd say you should target highly relevant keywords...

Right, so you're after highly relevant traffic, yeah? Spot on. But here's the thing: "project management software" is going to be a seriously competitive keyword. You'll be up against some massive players with deep pockets, and your cost-per-click (CPC) is likely to be sky-high. Plus, you might be attracting a load of traffic that isn't really the right fit for your platform. You'll want to make sure you target relevant keywords to drive sign ups.

The trick is to get super specific with your keyword targeting. Think about the nitty-gritty details of your ideal customer. What kind of projects are they managing? What size of business are they in? Is your platform particularly well-suited for Agile teams, or is it more of a waterfall kinda thing? Are you focused on construction projects, for example, or perhaps software development? By identifying these niche areas, you can start to unearth those "long tail" keywords – the longer, more specific search phrases that people use when they're really looking for something specific. The more generic and boarder, the worse performance you'll get.

Not only will these long-tail keywords be less competitive (meaning lower CPCs), but they'll also attract a more qualified audience – people who are much more likely to convert into trial users. It’s all about attracting the right traffic, not just any traffic.

You probably should nail the landing page experience...

Alright, so you've got people clicking on your ads, and you've got them landing on your signup page. Great stuff! But what happens next? This is where a lot of businesses fall down. Your landing page is your shop window, your chance to really grab people's attention and convince them that your platform is the bee's knees.

Ask yourself these questions: Is it crystal clear how to sign up for the free trial? Is the signup process quick and easy, or is it a convoluted nightmare? Is the copy on the page compelling, persuasive, and laser-focused on the benefits of your platform? Does it clearly explain how you solve their problems and make their lives easier? If the landing page is slow, looks dated, or is not trustworthy, people will just leave.

If your landing page is rubbish, you could be throwing good money after bad. No matter how well-targeted your ads are, if your landing page doesn't convert, you're wasting your time and your budget. I remember working with a client in the medical job matching SaaS space, and by improving their ad campaigns on Meta Ads and Google Ads, we reduced their Cost Per User Acquisition from £100 to £7. A good landing page can do wonders for campaigns.

Consider A/B testing different versions of your landing page to see what works best. Try different headlines, different layouts, different calls to action. Even small tweaks can make a big difference to your conversion rate.

This is the main advice I have for you:

Hope that all makes sense! Google Ads can be a really powerful tool for driving traffic and signups for your SaaS platform, but it's crucial to get the fundamentals right from the start. There are lots of moving parts and lots to keep in mind - I've only briefly touched on the basics here.

You might want to consider working with someone who has expertise in scaling software campaigns and Google Ads in general, but if not, good luck!

If you'd like to explore this further or discuss any of these points in more detail, I'd be happy to offer you a free consultation. We can have a chat about your specific needs and challenges and see if there's a way we can help you achieve your goals. Feel free to reach out.

Regards,

Team @ Lukas Holschuh