Paid advertising in saas companies: 8 absurd mistakes that compromise roi

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Despite all the information available, investing in paid advertising in SaaS companies can seem very complex .

The tactics and resources to be employed in paid advertising always differ depending on your objective, the platform you use and the company's focus.

However, when working with paid advertising (PPC) for SaaS companies , there are even more differences and challenges . And these differences are closely tied to the target audience you’re trying to attract.

As difficult as it may be to master this area, PPC is an important growth channel for most SaaS companies.

Unfortunately, the era of social media and free marketing is student database coming to an end along with the decline in organic reach.

As a result, competition with other SaaS companies for the top positions in search engines is becoming fiercer. Now more than ever , paid advertising is a key part of your marketing strategy.

Recent research has found that spending a higher percentage of your revenue on sales and marketing is directly correlated with faster growth.

If you plan to invest in PPC for your SaaS company , it’s important to make sure your budget isn’t wasted on simple , yet common mistakes .

To help you with this, here are 8 ridiculous mistakes to avoid when investing in paid advertising :

1. Adopt the same approach “everywhere”
The first and most common mistake made is to view digital advertising as a single platform where you can simply adopt the same approach.

Many marketers try to run the same campaign across all available channels and wonder why it doesn’t work!

Although this happens in most situations, in the case of SaaS products it is much more frequent.

When you advertise a particular product, the problem you aim to solve must be aligned with the activities being carried out by your audience at the time they see your ad .

Read: 12 Facebook Campaign Optimizations to Increase Your ROI in Less Than 7 Days

To best achieve this, it’s important to adjust your campaigns so that, on each platform, they move your audience through the funnel in a natural, friction-free way.

Read also: How to Avoid the Most Common Mistakes in Email Marketing Campaigns
2. Assuming there are only human clicks on PPC campaigns for SaaS (and non-SaaS too!)
It's interesting to look at Paid Advertising and see the positive impact it can have on your business and your ideal customer .

However, it is important to remember how often this tool is used for nefarious purposes, such as click fraud in some advertising campaigns. A Pixalate survey found that click fraud has risen to a rate of 25% and continues to grow.


This means that the metrics present in your PPC campaigns may not represent their true reach and impact.
In addition to the waste of resources that click fraud generates, it also distorts your metrics, making it difficult to analyze your digital marketing strategy.

To address this, it’s important to protect your paid advertising budget. There are click fraud prevention tools out there, such as ClickCease , that can detect and block fraudulent clicks on your Google and Bing ads.

3. Underestimating Brand Awareness is a Fatal Paid Advertising Mistake
In such competitive scenarios, growth in the number of conversions is favored by increased brand awareness.

Deal with this fact:

A user will probably not use your tool the first time they hear or read about it.

So, paid advertising and retargeting can “ plant a seed ” and start building brand awareness in a strategic way.

View User Attraction Details
It is important to utilize the power of familiarity. We will always prefer to do business with brands we recognize.

Use brand awareness campaigns to build more relationships and familiarity over time as people learn about your product.

You can invest in content aimed at educating this audience, showing why people need what you offer.

4. Ignoring Audience Intent Signals Can Compromise Your Acquisition Campaign ROI
The context in which your target audience finds itself is very important for the success of your campaigns.

When you ignore the context and intent signals of a user searching for a tool, you are wasting money on delivering the wrong message to your audience.

Also read: How to Build a Strong Brand in the Digital Age
This can happen when you target people based on general keywords .

An example:

Companies that target anyone who searches for “free software” waste a lot of money on customers who won’t stick around.

It's important to keep in mind that people who prefer a free tool over one that offers more benefits and features aren't getting their money's worth .

In this way, try to target users who emit signals indicating that they are likely to become high-value customers.

5. Writing only branded keywords will drastically compromise the ROI of paid media campaigns
“Why invest in a common keyword that I can rank for organically?”

This question, although understandable, is extremely flawed.

While keywords that use your brand name represent high intent and readiness to close a sale, these metrics aren’t all that reliable.

So, in addition to thinking about ranking organically, you should want to capitalize on the recognition you may have.

And that doesn't mean having dozens of keywords that contain your brand name.

Additionally, combining organic and paid results can lead to more clicks, generating more immediate results while boosting your Google AdWords Quality Score.

In other words: the more your brand dominates the search results screen, the more likely you are to get those clicks.

This way, to know which keywords and terms are worth investing in, you can use specific tools. And this also applies to keywords that reflect your brand.

Still, make sure you don’t get into a bidding war with a competitor who is trying to steal your potential customers.

6. Neglecting opportunities with User Generated Content is a huge paid media mistake for SaaS
User-generated content ( also known as UGC ) is one of the most powerful sources of persuasion out there.

Why? Simple s:

Audiences tend to find content posted by their peers much more trustworthy than content produced by marketers.
So the power of user-generated content comes down to trust . Especially when it comes to virtual products that are also promoted in virtual spaces, where many buyers don’t feel safe.

Also read: Growth Marketing Plan: see how the method that is revolutionizing the Digital Marketing Plan for startups works.
For these people, social proof can be the fine line between buying or ignoring .

7. Not building a Sales Funnel that goes from A to B with extreme clarity
There’s one thing all of the mistakes listed here have in common: marketers often aren’t thinking long-term.

While the nature of SaaS products allows for a shorter sales cycle, the truth is that you won't convert many customers with just one ad.

Instead, try creating sales funnels that you can nurture your prospects into over time.

Check out the 5 Phases of the Customer Lifecycle that can take your ROI to another level!
By using good content and specific CTAs, you can increase your impact throughout the funnel, guiding your audience to the next step.

8. Ignoring current customers when thinking about paid media campaigns
Ignoring or failing to invest in existing customers is a mistake most companies make.

Why spend money on advertising my product to my current customers?

Because the success of a SaaS company lies in customer retention.

Working to retain your customers and not letting them run to your competition should be a priority in your advertising spend.

There are several ways to fit paid advertising into your customer retention strategy.

You can use this tool to promote new features and products or for new uses that your customer is not yet aware of.

The goal is to keep your brand always present in the minds of customers while focusing on ROI at the same time!
With so many changes happening in the digital marketing environment and the growing competition surrounding the SaaS product market , investing in a strategy that involves paid advertising, if carefully planned, can give your company an edge over the competition .

While most of your competitors are currently concerned with organic reach on Facebook, you can reach your target audience on the search pages of Google or Bing.