How Much Should You Pay? How to Pay Less?
You’re not new to financial services PPC. Chances are you or your team have tried your hand at running ads yourself—only to find the PPC advertising cost too high in both time and click costs to justify the revenues you generate from your efforts.
But are you paying too much per financial services lead, or is this just par for the course? I will set out to answer that question with the real numbers you’ve been looking for. Plus, I’ll share the best way to lower PPC costs while generating more high-value financial services leads.
It’s a lot simpler than you think!
What Is PPC?
PPC is a method used by financial firms to get their websites to appear prominently on search engines like Google or Bing. The goal is to quickly yet effectively drive high-value leads into your domain where you can build trust, make the case for your services, and convince them to become your clients.
Setting up PPC campaigns is relatively easy if you have a detailed checklist to follow. Anyone can do it.
But there’s a catch: You have to pay to play.
How much you pay isn’t only determined by how much competition you have bidding on the same search results. Whether running Google PPC ads or Bing PPC ads, these advertising platforms adjust your costs based on how well your ad performs.
And this system will work in your favour. The better ads perform, the less you pay for the same ad placement. The flip side is that if your ads don’t perform well, you pay more and more and more—until you decide you can’t afford PPC advertising anymore.
Believe it or not, that’s what search engines want. They want you to leave if you can’t figure out how to produce a high-performing ad.
Because here’s the bitter truth.
Every time a would-be client sees a horrible ad, this is a bad user experience. The ad is irrelevant. It’s pushy. It’s out of touch. Appearing in the wrong searches.
Whatever the problem, Google and Bing don’t want you on their sites.
Before we look at the numbers, let’s see how Google and Bing judge your ad performance.
What Is a Quality Score?
Quality Score is a crucial metric in Google Ads and Bing, too, that evaluates the quality and relevance of your keywords, ads, and landing pages. It directly impacts your ad’s position (visibility) and cost-per-click (CPC). The score is influenced by historical account performance, so the longer you try—and fail—at financial services PPC, the lower your score goes.
You need to focus on improving 3 factors to dig out of this hole:
- Click-Through Rate (CTR): How often your ad is clicked when shown.
- Ad Relevance: How closely your ad matches the intent of the search query.
- Landing Page Experience: The relevance and usefulness of the landing page to the user. Yes, Google and Bing are looking at what happens after the person clicks—kind of like nosy neighbours peeking over your garden fence, but with a lot more data and a lot less gossip!
So, how much should financial services companies expect to spend on financial services pay per click advertising? Now that we know it depends on ad performance, I can answer this question and deliver clarity to the situation.
The questions you should ask are:
- Are the right people seeing your ads?
- Are they seeing them at the right time?
- Is your message convincing them to click?
- Is your landing page meeting its goal?
Your Click Through Rate (CTR) in Financial Services PPC is directly determined by the answers to these questions. And honestly, you’re probably paying too much.
What Does Financial Services Pay Per Click Advertising Cost?
Average Cost Per Click for Finance
Click Through Rate (CTR) is a measure of how often people who see your ad actually click on it. For financial services, the average CTR is 2.91%. This is better than most industries, with only “Dating and personal services” beating it at 5.05%. And let’s be honest, we’re not trying to compete with true love—unless you count a great investment strategy as your perfect match! 😄
So, I’ll ask you: Are you getting a 2.91% or higher click-through rate? If not, you are probably paying a lot more than you should be.
The average cost per click for financial services is £2.66.
That’s £2.66 per click, not per lead. This is every time someone clicks your ad, even if they “say sorry” by forced habit because it was an accident.
This financial services PPC cost is on the high end, with only consumer services and legal services having higher average costs.
Now, I want to mention here that achieving a high click-through rate requires more than a great call to action. A high CTR means your ads are relevant and effective. This is key to a successful marketing strategy.
When you integrate your ad campaigns into your broader marketing efforts, you ensure a cohesive message that resonates with potential clients. They’re more likely to trust your paid ads over those from competitors.
While this might seem a steep price, it’s essential to consider the potential returns. PPC Services for the Financial Industry might cost you more than others. However, the conversion rates could justify the expense.
Conversion Rate (CR) for Financial Services PPC
Conversion Rate (CR) tells you how many people click on your ad and then take the desired action, like filling out a contact form or downloading a resource. Remember, Google is watching!
Financial services boast an impressive average CR of 5.10%. Now, based on my experience in financial services PPC I expect this is actually higher. The data source lumps insurance in with other financial services. This may or may be reflective of your niche.
Even so, these figures allow us to calculate a potential cost per lead for your PPC campaign
Average Cost Per Lead for Financial Services
Cost per click £2.66 x 100 clicks = £266
5% x 100 clicks = 5 leads generated
£266 / 5 =£53 cost per lead
Please check my maths. I’m not the financial expert here.
Now, £53 may sound reasonable or absolutely outrageous.
Several factors go into the decision about whether the cost is justified.
- Lead to paying client ratio. If only 1 in 5 leads becomes a client, your acquisition costs just quintupled.
- Client retention rate
- Annual revenue per client
- Client lifetime value
You can attack this £53 from two fronts. First, if you’re paying more than this per lead, it’s time to improve your ad performance. Increase your conversion rate and lead to client ratio.
At the same time, improving the efficiency of your lead-to-client pipeline and your client retention strategies increases your ROI.
You increase lifetime value to the point that £53 is nothing. This is where taking a more whole-picture, integrated approach comes in.
You may need to invest a few hundred pounds per month (or a few thousand) in your financial services PPC service. But if this leads to acquiring clients worth tens or hundreds of thousands over their lifetime, it’s worth every penny.
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Increasing Your Financial Services PPC ROI
If you’re a financial company looking to optimise your financial services pay per click service, it’s crucial to focus on simplicity and effectiveness. Your ads should seamlessly integrate with your other marketing efforts. Whether through Facebook ads for financial services, email marketing, or search engine optimisation (SEO), consistency is key.
As a PPC consultant specialising in financial services, these tips have helped my clients the most. When implemented strategically while prioritising simple, effective, and integrated solutions, these PPC strategies deliver the greatest ROI.
5 Tips for Improving Click Through Rate (CTR)
- Craft Compelling Ad Copy
Your ad copy should be clear, concise, and irresistible. Use action-oriented language that speaks directly to your audience’s needs and pain points. A strong call-to-action (CTA) can make all the difference. The ad copy you create for those needing wealth management will be very different from business accounting services, etc. Know who you’re speaking with and speak directly to them. - Use Relevant Keywords
Ensure your keywords are highly relevant to your ad and the search queries you’re targeting. This improves ad relevance, leading to higher CTR and better ad positioning. Keyword intent is also an important factor to consider. - Test Different Ad Formats
Experiment with various ad formats like text, image, and video ads to see which resonates best with your audience. Dynamic ads that tailor content to the user can also boost CTR. - Leverage Ad Extensions
Use ad extensions to provide additional information like site links, call buttons, or location details. This makes your ad more useful and clickable. - Target the Right Audience
Ensure your ads are reaching the right people by using advanced targeting options. This includes demographic targeting, interest-based targeting, geo-targeting, retargeting, and even time-of-day targeting to capture your audience when they are most likely to click.
5 Tips for Improving Landing Page Conversion Rate
- Match Ad Copy to Landing Page Content
Ensure that your landing page reflects the promises made in your ad. Consistency in messaging helps build trust and encourages users to complete the desired action. - Simplify the User Experience
A clutter-free and intuitive landing page layout can significantly improve conversions. Minimise distractions, use clear headings and make the CTA prominent. Make conversions feel seamless. - Use Strong Visuals and Videos
High-quality images and videos can engage visitors and convey your message more effectively. A product demo or testimonial video can increase trust and drive conversions. Even written client testimonials have a positive impact on this metric. - Optimise for Mobile
Ensure your landing page is mobile-friendly. A responsive design that loads quickly on all devices will improve user experience and conversion rates. Copy your domain to Google’s Page Speed test for a free report on your website’s performance. - A/B Test Continuously
Regularly test different elements of your landing page, such as headlines, images, and CTA buttons. A/B testing helps identify what works best to boost your conversion rate. Financial services online ad versioning helps you optimise ad performance to lower ad costs over time. Deploy Google tags and track what happens before and after people click your ads with website analytics.
5 Tips for Improving Lead to Client Ratio
- Search Engine Optimisation (SEO)
Use SEO to attract high-quality leads already searching for your services. Optimise your website with relevant keywords, quality content, and a strong backlink profile to ensure you’re visible to the right audience. Over time, increased organic search visibility reduces your reliance on paid advertising. In the short term, it enhances trust and name recognition, which leads to more ad clicks and conversions. - Influencer Marketing
Partner with influencers in your industry to build credibility and trust. Their endorsement can turn potential leads into loyal clients, especially if they align well with your brand values. Ramin Nakisa is a good example with his YouTube channel PensionCraft. - Reputation Management
Maintain a positive online reputation by actively managing reviews and testimonials. Respond to feedback promptly and address any concerns to build trust with potential clients. Grow your digital reputation to build trust. - Email Marketing
Use targeted email campaigns to nurture leads through the sales funnel. Provide valuable content, personalised offers, and timely follow-ups to keep your brand top-of-mind. Employ marketing automation to nurture leads more consistently and cost-efficiently - Social Media Marketing
Engage with your audience on social media platforms where your potential clients are active. Share informative content, interact with followers, and use paid social ads to convert leads into clients.
5 Tips for Increasing Client Lifetime Value (CLV)
- Provide Exceptional Customer Service
Make every interaction count by delivering prompt, friendly, and helpful customer service. Respond to inquiries quickly, resolve issues efficiently, and always strive to exceed client expectations. A satisfied client is more likely to stay loyal. Leverage AI chatbots to support your team and deliver 24/7 customer service. See how Tower Hamlets increased social media resident engagement by 22% and lowered ad costs by implementing chatbot resident support. - Offer Personalised Experiences
Tailor your services to meet the unique needs of each client. Use data and insights to personalise communication, recommend relevant products or services, and show that you understand and care about their specific goals. - Communicate Regularly
Keep the lines of communication open with your clients. Regular updates, newsletters, and check-ins show that you value their business and keep them informed about new offerings or important industry trends. - Provide Ongoing Value
Continue to deliver value long after the initial sale. Offer exclusive content, educational resources, or loyalty programs that add ongoing benefits to your clients. This reinforces the idea that staying with your company is in their best interest. - Solicit and Act on Feedback
Regularly seek feedback from your clients to understand their needs and concerns. Show that you value their input by making improvements based on their suggestions. When clients see that you listen and act on their feedback, they feel more valued and are more likely to remain loyal.
Increase Your PPC ROI
Get more out of your online advertising. As an experienced PPC consultant specialising in financial services, I help organisations like yours enhance their ad performance, cut costs, and increase PPC ROI. See how this wealth management firm enhanced ad targeting, increasing value leads by 8% in just three months, and we didn’t stop there.
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