Building your SaaS with PPC is one way to pay for your success. But it’s not a vending machine, you can’t just put money in and expect leads and conversions.
Done right, Search Ads and other PPC strategies for SaaS will aid your SaaS growth exponentially.
The world of digital marketing can be murky. As you’ve built your SaaS, I’m sure you’ve encountered many ‘gurus’ who preach ways to hack your way to success.
Most of those gurus write articles that give SaaS founders simple lists of things that will gain them ‘instant results’.
However, the truth is that you have to pay for your success in sweat (and sometimes with money).
With PPC for SaaS, you could start seeing results immediately. But you also have to mentally prepare for a grind.
PPC For SaaS vs Search Ads
First, a quick definition. PPC for SaaS can mean very different things depending on who you talk to.
It’s a bit like the ‘square being a rectangle ordeal’.
PPC is a term that encompasses a few different channels including Search Ads, Facebook Ads, LinkedIn Ads, Display Ads & more. Basically, any platform that you can pay to get clicks.
Then, not to be confusing, there is SEM (search engine marketing) which can include Search Ads and SEO. These methods rely on keyword targeting and optimizing search results that lead to various SaaS pages.
This article will reference PPC broadly and sometimes Search Ads, Facebook Ads, and LinkedIn Ads separately.
Why Google Search Ads Are The Perfect Tool For SaaS Growth
Google Search Ads by concept are simple. A SaaS that wants to earn more leads and customers can target the searches that their target audience is typing in Google or Bing.
Target the right searches and you’ll start converting.
It’s worthwhile noting that 85% of the top 100 SaaSs use Search Ads.
Of course, your SaaS will need some spare marketing money to properly test these strategies.
Typically, between $500 and $2,000 a month should be a good start (depending on your value of sale and CPCs).
Typically, high CLV (customer lifetime value) will mean higher costs per click.
In SaaS & especially B2B SaaS, the audiences available on Facebook Ads & Display Ads will likely not be made for your industry. Unless we are talking about your SaaS Retargeting audiences.
LinkedIn Ads may be able to serve your B2B SaaS a little better but you still have to dial in an audience (and the CPCs are higher).
Search ads are perfect because they capitalize on intent. The searcher is essentially asking for your SaaS product.
Each SaaS Will Use PPC Differently
Your SaaS will likely need to create a relatively unique PPC strategy.
Many SaaS’s are lucky enough to occupy a space where users are searching for their product specifically.
Think “team meeting schedule tool.”
However, some SaaS products are new inventions, which means not many people will be searching for that thing specifically.
In that case, your campaign will likely target problem-related or higher funnel terms.
For example, If your SaaS is the first product to offer digital hugs to CEOs (sorry I couldn’t think of anything else), no one will be searching for that.
Instead, you would try targeting “how to show CEO appreciation.”
Ideally, there would be more of those searches and the clicks would be cheaper.
That’s a TERRIBLE example but you get the point.
Most larger SaaSs will target every stage of the funnel, building up from the bottom funnel.
What about Display, Facebook and LinkedIn ads for SaaS?
Each channel can have a place in the SaaS marketing mix.
Most SaaS companies, however, have little budget and need to spend that money where they will get maximum value.
In that case, choose a channel where you can target SaaS users who are closer to converting.
When your product is niche or you have a low budget, stay with search ads.
If more users can use your product, you may be able to rely on wider-reaching strategies and maintain positive ROI.
A SaaS product that offers budgeting services for individuals could find success with Facebook Ads since it can be used by just about anyone.
However, an electronics supply management B2B SaaS would not convert much with a general Facebook campaign.
In this case, the only channel this product could rely on would be search ads.
Of course, these concepts exclude retargeting audiences which are universally effective on all channels (provided you have good audiences).
Learn more about choosing the right marketing channels here.
What Is The ‘Right’ Use of Google Ads For SaaS?
You may have more questions about SaaS PPC than answers.
Don’t give up on us yet, the FAQ section is up next.
If you’re interested in diving deeper into these Google Ads concepts for SaaS, here are some key resources to set you on the right path.
Navigating Your First 120 Days Of Google Ads
If you are ready to launch your SaaS search ads in Google, this resource is perfect for telling you what to look for and what to do every day from the start of your Google campaign to month 4.
https://searchclickboom.com/navigating-the-first-120-days-of-your-saas-google-ads/
Google Ads Search Intents For SaaS
Every search on the internet has different intent behind it. Understanding the basic ‘intent framework’ is foundational to your SaaS search ad success.
Targeting transactional and navigational terms is one of the best ways to ensure ROI in your account.
Here’s a guide to understanding search intents. Especially in SaaS where they are tricky.
https://searchclickboom.com/search-ads-intents-amazing-guide-for-better-saas-lead-gen/
Know The Common SaaS Google Ads Mistakes Before You Make Them
I’ve aggregated mistakes that I’ve made and that others have made through the hundreds of account audits I’ve done.
This guide provides tips on goal setting, keyword structure ad quality and more.
https://searchclickboom.com/avoiding-google-ad-mistakes-that-most-saas-companies-make/
SaaS PPC FAQ – Get Familiar With The Common Questions SaaS Advertisers Have
These SaaS PPC FAQs will help SaaS owners get past the common questions and begin running PPC campaigns for themselves.
The data used to answer these questions is a blend of all industry data, SaaS-specific data & data collected from Search Click Boom.
What’s The Benchmark For Cost Per Lead In SaaS?
Your SaaS cost per lead is a calculation that factors in your CPCs and your conversion rate.
Typically that equation looks like this:
While conversion rates can be more consistent, CPCs and therefore clicks will vary largely between SaaS industries.
Cost Per Lead will be largely based on your customer lifetime value.
Google Ads is an auction-based system. So inherently, advertisers are going to be willing to pay more for clients who are worth more.
This drives up CPC and therefore cost per lead.
If your CPCs are high, you are likely targeting valuable keywords. Just make sure you are targeting the correct ones!
If you are interested, here are some industry benchmarks for costs per lead: https://firstpagesage.com/seo-blog/average-cost-per-lead-by-industry/
Is PPC For SaaS Expensive?
The unsatisfying answer to this question is that it’s case by case. PPC SaaS markets vary greatly based on a number of factors.
Some channels will be better for high-funnel conversions like newsletter signups. Others will be better for booking demos and gaining customers.
Let’s break down the main channels to understand when they can be cost-efficient and when they will lose your SaaS money.
Facebook Ads For SaaS
When running Facebook Ads as part of your SaaS PPC strategy, you have to be careful.
Since your potential reach is so large, you can get tricked into wasting a ton of money.
It’s always safer to start with really narrow audiences and grow from there.
Don’t worry about the users you’ll miss, worry about the ones you’re reaching.
When To Run Facebook Ads For SaaS
- When your SaaS can be used by most people (i.e. booking software, task scheduling tool)
- For retargeting audiences
- When you know specific audiences on Facebook align with your audience
- When you have awareness goals
When not to run Facebook ads for SaaS
- When you have a niche product
- When the audiences seem like they might be similar to your audiences
- If you have a tight budget
In general, Facebook can be tempting since there is a wide reach and cheap clicks. Facebook’s CPC averages around ~$0.49.
However, conversion rates are often very low.
So it depends on what you mean as expensive! If you want cheap clicks and that’s it, then Facebook and Display ads are good places to look.
Normally there is more to the story though.
LinkedIn Ads For SaaS
The average CPC on LinkedIn is $5.39, which is very expensive for a display-style advertising platform.
You can expect your SaaS search ads clicks to be right around that CPC as well.
LinkedIn is geared towards B2B SaaS leads with few exceptions.
Since you have the option to target people based on their job titles, places of work, size of company and more, the targeting can be very useful for certain businesses.
Not to mention the varying types of ads you can have.
Since it is still a “display-like” advertising platform, the intent is not really there. Therefore, conversion rates will be lower than search.
With clicks being one of the highest in terms of audience-style advertising, you’ll see some higher costs per lead as well.
Display Ads For SaaS
Googles’s Display ads have trapped many SaaS advertisers.
Google does a great job of giving you tons of targeting and channel options.
You can target topics, audiences, demographics and more. The channels allow you to reach users on YouTube, the Display Network, Gmail and beyond.
However, in SaaS (and ESPECIALLY in B2B SaaS) Display ads can waste money in an account.
Eventually, you might be able to optimize your audiences, but it will cost thousands of dollars to get there.
Across all advertisers, Display clicks cost $0.63 while search clicks cost $2.69.
That relationship is pretty consistent with what you see in SaaS. The only difference is that your search clicks can get more expensive relative to dispay. Way more expensive.
It’s recommended you try display ads once you’ve maxed out your search and retargeting audiences.
SaaS Search Ads
Most SaaSs should attempt to use Google search ads before they try any other form of PPC.
If you know there are searches for your product specifically or can isolate your users down to specific search terms, try it out.
The key is to exhibit control. SaaS search ads are still tricky and automation really won’t help you much with your niche SaaS product.
Keep ad groups tight & test multiple themes.
In terms of how expensive search ads for SaaS are, if you are targeting relevant terms, there is no cheaper avenue to access ready-to-convert clients.
The average ROI for Google Search Ads is 200% over all industries.
Search ads consistently deliver, no matter what your SaaS offers.
SaaS founders may think twice about Google search ads when budget is tight and site conversions aren’t optimized.
What’re The SaaS PPC CTR Averages?
CTR is a stat that many SaaS advertisers and founders fixate on. In reality, they should be minimally regarded.
Instead, you should focus on:
- Are you targeting accurate search terms/audience?
- Are your ads accurate and clear about what you offer and what conversion is on the landing page?
If you can confidently say yes to both, then don’t worry about conversion rate.
Consider the fact that a low SaaS CTR might be weeding out irrelevant customers. Maybe your ad copy mentions your ideal company size which deters smaller companies from clicking!
If your CTRs are high, you could be nailing you niche, or misleading your customers. Analyzing your targeted audience and ad copy will tell you which is true.
Regardless, for SCB our overall SaaS CTR was 2.37% in 2022 for Search and 0.73% For display. With Facebook Ads, 0.90% is normal.
What’s the Typical Conversion Rate For SaaS PPC?
For SaaS PPC, your conversion rates & CPCs are going to make or break your account. If you have a high conversion rate and relatively low CPCs, you will likely have excellent ROI.
But conversion rate isn’t the only conversion metric that matters for SaaSs.
Are the conversions good quality?
If they are leads, do they convert to SQLs, opportunities, and customers?
If they are subscribers, how many months do they subscribe for?
In general, you should always be shooting to increase your SaaS conversion rates through ad copy, landing page improvements, and more precise keyword targeting.
If you need a number to shoot for, SCB had a search ad conversion rate of 2.5% for all SaaS accounts managed last year.
Depending on what funnel stage you are targeting, what conversion you are offering, how expensive your product is, how many form fields you ask to be filled, and more, you should expect vastly different conversion rates for your SaaS PPC campaigns.
SaaS search ads conversion rates:
- Low Funnel: 5%
- Mid Funnel: 2%
- High Funnel: <1%
What’re The SaaS PPC Landing Page Best Practices?
Your SaaS PPC landing page is critical for your conversion rate success. However, be careful where you choose to dedicate your time.
Many SaaS owners waste time toiling with the design and look of the landing page when their copy is lacking.
There are always going to be ugly pages that convert well and pretty pages that don’t convert at all.
Great landing page creation starts with an understanding of the context under which users come to the page.
For example, a SaaS landing page may be able to ask for a 10-step demo form conversion if it follows a search for “healthcare credentialing platform” since the user was looking for just that.
However, if you bring your potential SaaS user from a Facebook, Display, or LinkedIn ad and ask them to fill out that same form, you won’t convert.
When that user was scrolling through Facebook on their lunch break, your ad distracted them and they clicked on it.
That millisecond of attention will be lost if you ask them to fill out a long form or schedule a meeting.
Instead, ask for an email and a name. Or just have them download a whitepaper.
Know the intent of the user coming to the landing page and tailor your copy and conversions accordingly.
Here are some resources to help raise your SaaS landing page conversion rates:
SaaS Landing Page Builders
https://searchclickboom.com/best-saas-landing-page-builders-top-5-with-everything-you-need-to-know/
Analyzing Great Landing Pages
https://searchclickboom.com/analyzing-the-best-saas-landing-pages-19-specific-examples/
Landing page FAQ
https://searchclickboom.com/saas-landing-page-faq-what-most-businesses-dont-know/
Do You Need A SaaS PPC Agency?
Finally, a plug. But a serious plug. Since you are spending your SaaS’s limited marketing money, why not make sure it gets used well?
At SCB, EVERY client we take in has tried to run ads themselves (or trusted a ‘full service’ marketing agency) first.
By the time the clients come to us, they are on their last straw.
Don’t let your account get to that point.
Get a free 2-part strategy session where we can make a plan or audit your current Google Ads. Ultimately the goal is to bring more money to your SaaS than you spend. So do it right.
Summary
SaaS owners find solace in benchmarks. It’s easy to rule out( or in) certain PPC channels when you have a baseline in mind.
However, every baseline comes laced with context that is so impactful that it makes the benchmarks borderline meaningless.
With Search Ads and other PPC platforms for SaaS, you choose how much you want to spend for clicks. And from there, if you understand the customers that are coming to your website, you will begin to convert.
At the end of the day, my clients and I aim to start with a 1:2 money in to money out ratio. From there we continue to push either for more volume or more efficiency.
It’s that easy 😂.
Thanks for reading!